I have been told that the idiom "selling price" is the same as the cost price of an item, that is the amount which a seller pays to, e.g. a wholesale merchant. The seller later sells the commodity at a higher sale price, and thus earns a profit.
But then the following definition:
the price at which something is offered for sale
Then an example is this question in a textbook:
Sue bought a TV set for $15000 on installments at the markup rate of
12% per annum. Find the selling price of the TV if the time period
is 3 years.
The definition and the example question statement show that the selling price is the sale-price, and NOT the cost-price.
But I had been stuck in a question earlier which I posted here (see accepted answer and comments under it), and I found out that my mistake was that I was calculating the GST (General Sales Tax) based on the Sale-price. I was doing that on the basis of the following definition,
General Sales Tax is imposed by the Government on the percentage of
the selling prices of things.
I learnt from all that that the Selling Price is the same as the Cost Price and not the Sale Price.
Now what's incorrect and what's correct?
Best Answer
Let me try to make some things clear-
The guy, the retailer, gets the product from a dealer for say $80$. He wants a profit of say $20$ making it $100$ . Now, He has to pay tax. He doesn't want to pay tax himself, but will try to get the customer to pay the tax. He adds say $20 \%$ tax and finally, a customer buys it for $120$.
Cost Price - $80$
Selling price - $100$
Selling price(inclusive of all taxes) - $120$
There are two selling prices - One in terms of the retailer and one in terms of the customer. The retailer will give the $20$ to the tax and finally, he thinks the selling price is just $100$ . Customer though got it for $120$. This is his selling price.
Basically, it depends on the problem, as to - from whose side is it asking. I hope I am clear.