The Difference Between Price, Cost, and Value of Machinery and Equipment

The general public often uses the terms price, cost, and value interchangeably.  Machinery and equipment appraisers on the other hand distinguish the difference between these terms. Price is the amount that a buyer will pay for a machine or a piece of equipment.  The price could be higher or lower than the asset value.  Cost is a term that appraiser use in regards to production.  The cost may be higher or lower than the asset value.  Value is independent of both price and cost in the world of machinery and equipment appraisal.