Tag Archives: Unit Cost

Unit Cost

The unit cost of a product is the cost per standard unit supplied, which may be a single sample or a container of a given number. When purchasing more than a single unit, the total cost will increase with the number of units, but it is common for the unit cost to decrease as quantity is increased (bulk purchasing), as there are discounts etc. This reduction in long run unit costs which arise from an increase in production/purchasing is due to the fixed costs being spread out over more products and is called economies of scale.

Unit Cost Functions

Unit Cost is very important for analysizing enterprise cost management.Due to the difference of Unit Cost which reflect whether its production level, Technology equipment and Management level.

one of the purpose of Culcalation unit cost is for understanding product unit cost and every cost project adminitration.  Compared Advanced enterprises with the industry with foreign advanced enterprises on unit cost.You should find the distance and ensure the improvement direction.At the same time,unit cost is also one of the accordance to decide product price.

Tagged ,