Unit Cost

Business, Legal & Accounting Glossary

Definition: Unit Cost


Unit Cost


What is the dictionary definition of Unit Cost?

Dictionary Definition


This is expenditure incurred by an organisation as expressed as a rate per unit of production or sales.

It can be difficult to make valid comparisons of unit costs between organisations.

The main issue being the arbitrary allocation of fixed overhead costs.


Examples of Unit Cost in a sentence


I wanted to determine the unit cost of each item in our portfolio and see what would happen to our company in the future if we spent too much.

In order to understand what your total profit might be you will need to know what the unit cost of each item is.


Synonyms For Unit Cost


cost per unit, unit price, price per unit, unit costs, costs per unit


Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/unit-cost/
Modern Language Association (MLA):
Unit Cost. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
May 18, 2024 https://payrollheaven.com/define/unit-cost/.
Chicago Manual of Style (CMS):
Unit Cost. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/unit-cost/ (accessed: May 18, 2024).
American Psychological Association (APA):
Unit Cost. PayrollHeaven.com. Retrieved May 18, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/unit-cost/

Definition Sources


Definitions for Unit Cost are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 6th January, 2020 | 0 Views.