One of the things that we believe to be important for project management is the proper understanding of the relationship between cost and price. In this post we will try to clarify the meanings for these two words.
Price is the amount of money or something valuable that a customer is ready to pay or give in order to receive something valuable from you. In terms of software project management, the thing that the stakeholder receives is the project being done, and the things that the customer and stakeholders receive are the results of the project – be it either goods or services. Money is what usually paid for doing the project. At the same time, Cost is the amount of resources (equipment, materials, money, people, etc) that are utilized in order to produce goods or services, the deliverables of the project.
