Shipping Terms
Commonly Used Terms
Click on the term below and get an explanationUnderstand what the shipping terms means
Average Cost per Unit
The average cost per unit is the estimated total cost, including allocated overhead, to produce a batch of goods divided by the total number of units produced. It is equal to the total cost of production divided by the number of units produced, also known as the unit cost. Over a longer duration, the average cost normalizes the cost per unit of production.