Cost is a quantitative representation of the value-exchange relations, which expresses the basic properties of a service, product, real estate or other object of exchange. The concept of value in everyday life is determined by the cost of acquisition, and in economics it has a broader meaning.
Value is the basis of the quantitative ratio in the equivalent exchange. At the same time, there are many theories and schools that try to explain the nature of this concept and give a general scheme for its definition. The economic concept of value for a product determines that it includes such components as the cost of raw materials, the volume of labor costs, transportation costs, energy and fuel costs, rent and other production and sales costs. Ultimately, the manufacturer or supplier's "cheat" is added, which determines their profit. In addition, the value of the value is influenced by such factors as market demand and supply, the ratio of which makes it possible to determine the need of consumers for a given product or service. To do this, manufacturers conduct social surveys and marketing research, after which they calculate the optimal value of the cost. Also, this value depends on the regulation of pricing by the state. As a result, it is rather difficult to determine the cost of products, since to determine it, it is necessary to take into account many unrelated factors. However, not only costs can determine the value of an object. Thus, it is much more difficult to calculate the cost of spiritual goods, which include historical values and works of art, since the price here is regulated according to completely different laws. In this case, the price can include such concepts as beauty, popularity, fame, as well as the name of the author and other nuances. Thus, value, being a fundamental economic category, is rather difficult to understand and analyze. The most famous theories of this indicator are: 1) The labor theory of value, which is based on the concept of labor time spent on the production of goods. 2) The theory of marginal utility, based on human needs. 3) The subjective theory of value, which establishes the concept of a fair price. 4) Cost theory based on production costs.
