Question

Discuss the differences between price analysis and cost analysis.

Answer 1

Some of the major difference between price analysis and cost analysis are-

1. Price analysis is the evaluation of cost price compared to other options available in the market. Cost analysis is the total cost of the product which used for making and selling.
2. Cost analysis is required when price analysis can not be performed, as it help to determine the price of the product.
3. Price analysis give an competitive idea of the product market, cost analysis give the manufacturing cost of the product.

4.Price analysis have broad use and scope in the industry, cost analysis scope is very limited.