原価

• Reading: げんか
• Romaji: genka
• Kanji breakdown: 原 (gen) — original, fundamental, source; 価 (ka) — price, value
• Pronunciation: /ɡen.ka/

Meaning

Cost price; prime cost; the actual cost of producing or acquiring a good, before any mark-up or profit margin is added.

A core accounting and business term referring to the fundamental cost of manufacturing or purchasing a product, including raw materials, labour, and direct overheads. Appears in compound terms such as 原価計算 (cost accounting) and 原価率 (cost ratio). Essential vocabulary for manufacturing, retail, and financial reporting. Contrasts with 売価 (selling price), which includes profit.

Examples

1. 原価を下げるために、部品の調達先を見直すことにした。 In order to reduce costs, we decided to review our parts suppliers.
2. この商品の原価率は約六割で、利益率が低い状況が続いている。 This product has a cost ratio of approximately sixty percent, and the low profit margin has persisted.
3. 原価計算を正確に行わなければ、適切な売価設定ができない。 Without accurate cost accounting, it is impossible to set an appropriate selling price.

Usage Guide

Context: accounting, manufacturing, retail, financial reporting

Tone: neutral

Origin & History

Compound of 原 (gen, original/fundamental) and 価 (ka, price/value). Together they denote the foundational price at which something costs before any commercial processing or mark-up is applied.

Cultural Context

Era: Meiji onward

Generation: Business professionals

Social background: Business/Finance