What is unit cost?

What is unit cost?

A unit cost is a total expenditure incurred by a company to produce, store, and sell one unit of a particular product or service. Unit costs are synonymous with cost of goods sold (COGS).

What is an example of unit price?

We divide the price of certain number of units of an item by the number of units to find the unit price of that item. For example, to find the unit price of 12 ounces of soup that costs $2.40, divide $2.40 by 12 ounces, to get unit price of soup as $0.20 per ounce.

What is unit cost formula?

Unit Cost = Variable Cost + Fixed Cost / Total Units Produced. The unit cost of a product is calculated by adding the total variable cost related to the production of the goods as well as a fixed cost.