BASIC PRICE Meaning and
Definition
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Basic price refers to the initial or fundamental cost of a product, commodity, or service before the inclusion of any additional charges, such as taxes or discounts. It is the original price set for an item without considering any external factors.
The basic price accounts for the essence of the item itself, representing the value of the goods or services provided by a business entity. It includes the production cost, labor cost, raw materials, and overhead expenses incurred during the manufacturing or delivery process.
Factors like transportation costs, taxes, and other indirect costs are not included in the basic price. These additional charges are typically added later on in the pricing process, reflecting the cost of delivering the product to the customer or the taxes incurred during the sale.
The basic price is significant for both sellers and buyers. For sellers, it helps in determining the minimum price required to cover all the production costs and associated expenses, ensuring profitability. On the other hand, for buyers, the basic price allows them to compare the cost of different products or services offered by various vendors, facilitating informed decision-making.
In summary, the basic price serves as the foundation of the overall cost structure, acting as a reference point for evaluating the worth of a product or service, excluding any additional charges or taxes.
Common Misspellings for BASIC PRICE
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Etymology of BASIC PRICE
The word "basic price" is a combination of two terms: "basic" and "price".
The term "basic" originated from the Latin word "basicus", which means "fundamental" or "pertaining to a base". It later evolved into the Old French word "basique", and eventually entered English as "basic" in the late 16th century.
The word "price" has its roots in the Old French word "pris", also meaning "price" or "value", which came from the Latin word "pretium".
Therefore, the etymology of "basic price" combines the concept of something fundamental or foundational (basic) with the value or cost assigned to it (price). This term is commonly used to refer to the initial or starting price of a product or service, before additional costs or modifications are factored in.
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