Price is the amount actually paid or received in a transaction
of a sale deed. On the other hand Value is an estimation
based on Utility, Scarcity, Demand and Transferability.
Price is real but value is only estimation.
Value is
based on 4 major
factors. Utility, Scarcity, Demand
and Transferability. Value in general has following
criteria. Market value, Assessed value, Loan value, Insurance,
Book value, Income or Capitalised value, Liquidation value,
Going concern value, Replacement value, Value in exchange,
Value in use, Value in alternative use.
Cost is
the actual expenditure in manufacturing process i.e. expenditure
incurred in a manufacturing process. This varies from manufacturer
to manufacturer. Customer may or may not be willing to
pay this cost though.
Property is
some thing that is owned. It may be either tangible or
intangible. It may be owned solely or in partnership. The
owner or owners have individual or combined rights to use
or dispose of the property.
Market is
a system where in products and services are traded at agreed
price. Agreed price depends on many factors. The same or
similar product may be sold or purchased at different value
by different sellers and buyers.
Each of the Plants or
Machinery has its own inherent
characteristics and attributes. These are directly related
to the product produces. The same Plant or Machinery may
be used by different owners for different purpose. Therefore
this market is segmented. In this market different climates
exist, different economies operate and hence transactions
are governed by different laws. Hence, the Market is local
also.
Market value on a particular
date is the estimation where in an asset is exchanged between
willing, prudent, seller and buyer at arm's length. Both
the parties complete the transaction knowledgeably and
without
compulsion.
