At cost price – Definition & Meaning

“At cost price” is a common term used in business transactions and financial reports. It is an important concept that helps businesses determine the true cost of their products or services. In this article, we will explore the definition and meaning of “at cost price” and its various associations.

Definitions

“At cost price” refers to the price at which a product or service is acquired or produced. It includes all the expenses incurred in the production or acquisition of the product or service, such as raw materials, labor, and overhead costs. The cost price is an important factor in determining the profit margin of a business.

Origin

The term “at cost price” has its roots in the accounting and finance industry. It has been in use for many decades and has become a standard term in financial reporting.

Meaning in different dictionaries

According to the Oxford English Dictionary, “at cost price” means “at the price paid for goods or services, without any added profit.” Merriam-Webster defines it as “the price at which a product or service is acquired or produced, including all expenses incurred in its production or acquisition.”

Associations

“At cost price” is associated with various financial and accounting concepts, such as cost accounting, cost of goods sold, and gross profit margin. It is also used in pricing strategies, such as cost-plus pricing, where the selling price is determined by adding a markup to the cost price.

Synonyms

Some synonyms of “at cost price” include “at cost,” “at cost value,” and “at cost basis.”

Antonyms

The antonym of “at cost price” is “at retail price,” which refers to the price at which a product or service is sold to the end customer.

The same root words

“At cost price” has the same root words as “cost accounting,” “cost of goods sold,” and “cost-plus pricing.”

Example Sentences

1. The company sold the products at cost price to clear their inventory.
2. The cost price of the raw materials increased, affecting the profit margin of the business.
3. The accountant calculated the cost of goods sold using the at cost price method.
4. The retailer added a markup of 20% to the cost price to determine the selling price.
5. The company offered a discount of 10% on products sold at cost price to its employees.