Define: Unit Cost

UK Accounting Glossary

Definition: Unit Cost

Quick Summary of 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.


Full Definition of Unit Cost


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.

Unit Cost FAQ's

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
Modern Language Association (MLA):
Unit Cost. Payroll & Accounting Heaven Ltd. November 22, 2019
Chicago Manual of Style (CMS):
Unit Cost. Payroll & Accounting Heaven Ltd. (accessed: November 22, 2019).
American Psychological Association (APA):
Unit Cost. Retrieved November 22, 2019, from website:

Definition Sources

Definitions for Unit Cost are sourced/syndicated from:

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

This glossary post was last updated: 5th May 2019.