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Unit Cost

What is a Unit Cost?

A unit cost is a type of cost incurred by a company to assemble and/or create, store and sell one unit of a specific product. This simply means, the amount of expenses made by the company during the production process of a product to the point of sale.

This cost is an accounting measure that includes both the fixed costs and variable costs. The measure can be used to determine how efficient company's operations are.

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