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average cost

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average cost

Or unit cost, total cost divided by output. For example, if a firm has total costs of 10 million with an output of 1 million units, the average cost is 10. If long-run average cost falls as output increases, then the business organization will experience economies of scale.



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? Mentioned in ? References in periodicals archive
 
BOAT BITS $747,577 Average cost to maintain one mile of interstate highway in 2006.
19, 2006 continents, the AICPA proposed that the IRS and Treasury should allow the use of the rolling average cost method in valuing inventories when this method approximates actual cost.
They conclude that [R - (COC X IC)/P] is a measure of employee productivity, PC/P represents average cost per person.
 
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