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unit cost
(redirected from Average costing)

   Also found in: Wikipedia, Hutchinson 0.06 sec.
unit cost
the actual cost of producing one article

unit cost [′yü·nət ′kȯst]
(industrial engineering)
Cost allocated to a specified unit of a product; computed as the cost over a period of time divided by the number of units produced.


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Special note: If your mill runs colors, average costing is especially dangerous.
Average costing methods mitigate the effects of various costs, producing a smoothing effect.
on average costing $4,341 compared to $6,285 for indemnity plans.
 
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