I'm thinking about creating a Unit Cost Specification as an alternative to Good Relations Unit Price Specification, but does this term already exist in some vocabulary?
Price = The quantity of payment or compensation given by one party to another in return for goods or services.
Cost = The value of money that has been used up to produce something.
asked 07 Jan '13, 19:45
I don't think cost is a subClassOf a price. It is essential to consider cost when setting a price. But not every cost is a price. For example a small picaso painting cost about 1000 euro's to produce (canvas and oil paint plus time). The price you can get it for is about 100,000. This example shows that the relation does not hold, and rarely does.
If it is for internal use then you might want to model it differently. i.e. cost being a property of a product batch. And even there the practicals might be difficult to get to. e.g. what is included in the cost of a product? While a sale price is much simpler to determine.
Lastely do you really want to publish your costs to the outside world (where good relations fits in)?
answered 09 Jan '13, 03:42