Money cost is that cost which is expressed or measured in monetary terms. It is the cost in which they express are included namely the price of raw materials, wages of labour, interest on capital, rent on land, salaries of managers and the normal profit of entrepreneur. Money cost is called the accounting cost of production. Real cost means all those pains, efforts and sacrifices which are borne for the production of any commodity. In other words, efforts and sacrifices made by various sections of society for the production of any commodity are the real cost of production.