Debit and credit are formal bookkeeping and accounting terms that have opposite meanings and come from Latin. Debit comes from debere, which means "to owe". The Latin debitum means "debt". Credit comes from the Latin word credere, which means "to believe".
It is more common to use the terms in the plural, Debits and Credits.
Debit is abbreviated as Dr., while credit is abbreviated as Cr.
"Debit" also refers to the left side of a general ledger account, while "Credit" refers to the right side. Due to the proliferation of bookkeeping and accounting computer software, it is now common for Debits to be mistakenly treated as positive values and Credits to be mistakenly treated as negative values. This allows for mathematical calculations. This has lead to confusion as people do not understand why a Sales amount is treated as an negative value (Credit) and an expense is treated as a positive value (Debit). If the value of the debits are greater than the value of the credits, then the balance on the account is a debit and should not be described as a positive value balance.
Debits or Credits are neither positive or a negative values. The balance on an account is either a debit or a credit not a positive or a negative value.
Asset and expense accounts increase in value when debited and decrease when credited. Whereas liability, equity, and revenue accounts decrease in value when debited and increase when credited.
This distinction is somewhat counterintuitive, until the nature of those accounts is more closely scrutinized. For example, revenue is coded as a credit. After recording a day's sales invoices, the company will have credited a certain amount in revenue, but the customers ledger will hold a debit balance being the amount of the unpaid invoices. To fully understand this see Double-entry bookkeeping system where Debits and Credits form the core of that system.
In economics and business, the price is the assigned numerical monetary value of a good, service or asset.
The concept of price is central to microeconomics where it is one of the most important variables in resource allocation theory (also called price theory).
Price is also central to marketing where it is one of the four variables in the marketing mix that business people use to develop a marketing plan.
In economics, business, and accounting, a cost is the value of inputs that have been used up to produce something, and hence are not available for use anymore. In business, the cost may be one of acquisition, in which case the amount of money expended to acquire it is counted as cost. In this case, money is the input that is gone in order to acquire the thing. This acquisition cost may be the sum of the cost of production as incurred by the original producer, and further costs of transaction as incurred by the acquirer over and above the price paid to the producer. Usually, the price also includes a mark-up for profit over the cost of production.