Unit Cost
The cost incurred by a company to produce, store and sell one unit of a particular product. Unit costs include all fixed costs (i.e. plant and equipment) and all variable costs (labor, materials, etc.) involved in production. Investopedia Says:
Unit cost is an important metric to look at when evaluating a "unit grower" stock, or a stock that chiefly produces items that have a low fixed cost. Generally, the larger a company grows, the lower the unit cost it can achieve through economies of scale. Related Terms:
Cost Of Goods Sold - COGS
Economies Of Scale
Fixed Cost
Incremental Cost
Marginal Cost Of Production
Variable Cost |