To many, these are confusing terms, and they are frequently used interchangeably.
The fact is they are not the same and we as project managers need to know the difference between these terms.
COST is the amount of money a company spends to make a product or service.
PRICE is the amount a customer pays for that product or service.
The difference between cost and price is the company’s profit.
In most cases a project manager deals with costs when budgeting for a project. The exception would be when the project manager buys a product or services from another company. The project manager pays the asking price, then carries it as a cost to the project.
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