Define cost. cost synonyms, cost pronunciation, cost translation, English dictionary definition of cost. n. 1. An amount paid or required in payment for a purchase; a price.
Cost vs. price in accounting Now, cost and price also have distinct meanings in terms of accounting and financial analysis. So in these formal uses, it’s best to be careful with these words. Cost refers to “the expense incurred for making a product or service that is sold by a company,” according to Investopedia.