unit costs

Price per piece

Unit costs are the expenses incurred to produce, store, or sell one unit of a product or service.

Businesses track unit costs to set prices and measure efficiency: Our unit costs dropped after we automated the assembly line.

The term appears in manufacturing, retail, and accounting contexts, often alongside discussions of economies of scale.

pricing

markup

Added percentage for profit

wholesale price · retail price · list price · price point · competitive pricing · contribution margin · gross margin · surcharge · discount · premium pricing

efficiency

waste reduction

Decreasing material for disposal

benchmarking · continuous improvement · kaizen · value engineering · productivity · standardization · operational efficiency

manufacturing

economies of scale

Cost advantages from size

capacity utilization · work-in-progress · raw materials

accounting

overhead

Located directly above

Opposites
pricing structure

unit costsbulk pricing

Discounts for large quantities

volume pricing · wholesale pricing · quantity discounts · volume discounts · tiered pricing

cost aggregation level

unit costsfixed costs

Expenses unchanged by output

overhead costs · sunk costs · indirect costs · administrative costs

transaction perspective

unit costsunit price

Cost per single item

unit sales

Family

unit, units, unite, united, unites, uniting, unity, unitary, unitize

Familiarity
Top 500,000
Profile
Used worldwide · Timeless · Rated G