Kaupverðið

Kaupverðið is an Icelandic term that refers to the purchase price of a good or service—the amount a buyer must pay to obtain the item. In everyday commerce, kaupverðið can denote the base price set by the seller or the total cost to the buyer after related charges are included, depending on the contract terms.

In international trade, the composition of kaupverðið is often defined by Incoterms or other trade agreements. The base price may be quoted without delivery costs, while the total landed cost to the buyer can include freight, insurance, customs duties, taxes, and handling fees. Terms specify who bears each cost and risk at different points in the shipping process, which affects the final kaupverðið the buyer records.

From an accounting perspective, kaupverðið is typically treated as the cost of goods purchased or the cost basis for inventory. It is recorded on the balance sheet as an asset until the goods are sold, at which time it becomes part of the cost of goods sold. VAT or sales tax is usually accounted separately, depending on local tax rules.

In financial markets, especially currency exchange, kaupverðið can describe the bid price—the price at which a bank or dealer is willing to buy a currency from a customer. The opposite price is the söluverð (ask price), and the difference between these two is the spread, reflecting market liquidity.

Kaupverðið is a fundamental concept in pricing, procurement, inventory management, and financial transactions, influencing profitability and cost control.