unit cost means

unit cost means refers to the cost incurred to produce or purchase a single unit of a product or service. This cost includes all relevant expenses such as materials, labor, and overhead, and is a critical metric for businesses to calculate pricing, profitability, and efficiency. Unit cost is calculated by dividing the total cost of production by the number of units produced. Understanding unit costs helps businesses set competitive prices and make informed decisions about production scaling, sourcing, and inventory management.