Tuesday, April 21, 2015

How do you calculate the cost per unit?

How do you calculate the cost per unit?
Vague question. Here's my attempt. Simple cost is an accumulation of input costs. It is important to include all costs. i.e.(time, material, overhead).
It can be actual costs or replacement costs. That gets into pricing, accounting, taxation, and banking. I recommend looking in financial accounting and cost accounting to see which fits best.

A general rule: Total manufacturing costs/ total produced units

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