Cost price is the amount a business pays to acquire or produce a product. It includes raw materials, labour, manufacturing, shipping, and other expenses. In other words, it is the total cost incurred by a business to make a product available for sale. On the other hand, the selling price is the amount at which a business sells its products to customers. It is the price that a customer pays to purchase a product from a company. The selling price is generally higher than the cost price, and the difference between the two is known as the profit margin.