How does Facebook determine the cost per click?

Is it primarily a function of set daily budget (i.e. the higher the budget, the higher the cost per click unless the ad set budget is slowly increased), targeting (relevancy), creative and ad copy (affecting the clickthrough rates)? I've been doing some testings on page like ads as well as page post engagement and website conversion ads, and going through different training on the topic as I'm troubleshooting my advertising campaign.

if people would know that, the world would be a better place part of their algorythm

its a bidding process, the higher you bid, the better placement you get. The more competition for that placement the more you need to outbid them.