Unit Cost Calculator

✖Total Cost is the sum of all expenses incurred in the production and delivery of goods or services, including both fixed and variable costs.ⓘ Total Cost [TC]			+10% -10%
✖Total Units Produced is the complete quantity of goods manufactured during a specific period.ⓘ Total Units Produced [TUP]			+10% -10%

✖Unit Cost refers to the average cost incurred to produce a single unit of a product, calculated by dividing total production costs by the number of units produced.ⓘ Unit Cost [UC]

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Formula

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Unit Cost

Formula

`"UC" = "TC"/"TUP"`

Example

`"59.47368"="56500"/"950"`

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Unit Cost Solution

STEP 0: Pre-Calculation Summary

Formula Used

Unit Cost = Total Cost/Total Units Produced
UC = TC/TUP
This formula uses 3 Variables

Variables Used

Unit Cost - Unit Cost refers to the average cost incurred to produce a single unit of a product, calculated by dividing total production costs by the number of units produced.
Total Cost - Total Cost is the sum of all expenses incurred in the production and delivery of goods or services, including both fixed and variable costs.
Total Units Produced - Total Units Produced is the complete quantity of goods manufactured during a specific period.

STEP 1: Convert Input(s) to Base Unit

Total Cost: 56500 --> No Conversion Required
Total Units Produced: 950 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

UC = TC/TUP --> 56500/950

Evaluating ... ...

UC = 59.4736842105263

STEP 3: Convert Result to Output's Unit

59.4736842105263 --> No Conversion Required

FINAL ANSWER

59.4736842105263 ≈ 59.47368 <-- Unit Cost

(Calculation completed in 00.004 seconds)

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Credits

Created by Keerthika Bathula

Indian Institute of Technology, Indian School of mines, Dhanbad (IIT ISM Dhanbad), Dhanbad

Keerthika Bathula has created this Calculator and 50+ more calculators!

Verified by Aashna

IGNOU (IGNOU), India

Aashna has verified this Calculator and 25+ more calculators!

< 25 Cost Accounting Calculators

Material Cost Variance

Go Material Cost Variance = (Standard Quality for Actual Output*Standard Price)-(Actual Quantity*Actual Price)

Labour Cost Variance

Go Labour Cost Variance = (Standard Hours for Actual Output*Standard Rate)-(Actual Hours*Actual Rate)

Revised Standard Quantity

Go Revised Standard Quantity = (Standard Quantity of each Material/Total Standard Quantity)*Total Actual Quantity

Learning Curve

Go Learning Curve = (Time Taken to Produce Initial Quantity*Cumulative Number of Batches)^(-Learning Coefficient)

Labour Efficiency Variance

Go Labour Efficiency Variance = Standard Rate*(Standard Time-Actual Time)*Variance

Time to Receive

Go Time to Receive = Time for Stock Validation+Time to Add Stock to Records+Time to Prep Stock for Storage

Labour Rate Variance

Go Labour Rate Variance = Actual Time*(Standard Rate-Actual Rate)*Variance

Cycle Time

Go Cycle Time = Process Time+Inspection Time+Move Time+Queue Time

Revised Standard Hours of Labours

Go Revised Standard Hours of Labours = (Actual Mix/Standard Mix)*(Standard Hours of Labour)

Material Yield Variance

Go Material Yield Variance = (Actual Unit Usage-Standard Unit Usage)*Standard Cost per Unit

Overall Equipment Effectiveness

Go Overall Equipment Effectiveness = Good Count*Ideal Cycle Time/Planned Production Time

Avoided Cost

Go Avoided Costs = Assumed Repair Cost+Production Losses-Preventative Maintenance Cost

Material Usage Variance

Go Material Usage Variance = Standard Price*(Actual Quantity Units-Standard Quantity)

Labour Mix Variance

Go Labour Mix Variance = Standard Rate*(Reversed Standard Rate-Actual Time)

Material Price Variance

Go Material Price Variance = Actual Quantity*(Standard Price-Actual Price)

Material Quantity

Go Material Quantity = Standard Price*(Standard Quantity-Actual Quantity)

Customer Acquisition Cost

Go Customer Acquisition Cost = Cost of Sales and Marketing/Number of New Customers Acquired

Total Addressable Market

Go Total Addressable Market = Annual Contract Value per Client*Number of Potential Clients

First Pass Yield

Go First Pass Yield = Number of Good Products Finished/Number of Production Orders Started

Average Days Delinquent

Go Average Days Delinquent = Days Sales Outstanding-Best Possible Days Sales Outstanding

Backorder Rate

Go Backorder Rate = (Number of Undeliverable Orders/Total Number of Orders)

Monthly Recurring Revenue

Go Monthly Recurring Revenue = Number of Customers*Average Billed Amount

Sell -Through Rate

Go Sell Through Rate = Number of Units Sold/Number of Units Received

Takt Time

Go Takt Time = Production Available Time/Customer Demand

On-Time Delivery

Go On-Time Delivery = On Time Units/Total Units

< 16 Important Formulas of Cost Accounting Calculators

Labour Cost Variance

Go Labour Cost Variance = (Standard Hours for Actual Output*Standard Rate)-(Actual Hours*Actual Rate)

Learning Curve

Go Learning Curve = (Time Taken to Produce Initial Quantity*Cumulative Number of Batches)^(-Learning Coefficient)

Labour Efficiency Variance

Go Labour Efficiency Variance = Standard Rate*(Standard Time-Actual Time)*Variance

Overall Equipment Effectiveness

Go Overall Equipment Effectiveness = Good Count*Ideal Cycle Time/Planned Production Time

Cost of Goods Sold

Go Cost of Goods Sold = Beginning Inventory+Purchases During the Period-Ending Inventory

Material Usage Variance

Go Material Usage Variance = Standard Price*(Actual Quantity Units-Standard Quantity)

Noria Effect

Go Noria Effect = (New Hires Salary Cost-Leavers Salary Cost)/Previous Salary Cost

Customer Acquisition Cost

Go Customer Acquisition Cost = Cost of Sales and Marketing/Number of New Customers Acquired

Total Addressable Market

Go Total Addressable Market = Annual Contract Value per Client*Number of Potential Clients

Backorder Rate

Go Backorder Rate = (Number of Undeliverable Orders/Total Number of Orders)

Conversion Cost

Go Conversion Cost = Direct Labour Cost+Manufacturing Overhead Cost

Production Cost

Go Production Cost = Total Fixed Costs+Total Variable Costs

Prime Cost

Go Prime Cost = Direct Materials Cost+Direct Labour Cost

Takt Time

Go Takt Time = Production Available Time/Customer Demand

On-Time Delivery

Go On-Time Delivery = On Time Units/Total Units

Unit Cost

Go Unit Cost = Total Cost/Total Units Produced

Unit Cost Formula

Unit Cost = Total Cost/Total Units Produced
UC = TC/TUP

What is Unit Cost ?

Unit cost, often referred to as cost per unit, is a crucial financial metric that encapsulates the average expenditure associated with producing each individual unit of a product or service. This figure is derived by dividing the total production costs, which encompass both fixed and variable expenses incurred during manufacturing, by the total number of units produced within a specific timeframe. The significance of unit cost lies in its ability to inform pricing strategies, facilitate profitability analysis, and guide effective cost management practices within an organization. By understanding the cost per unit, businesses can make informed decisions regarding pricing structures, identify areas for cost optimization and efficiency improvement, and ultimately enhance their overall financial performance and competitive positioning in the market.

How to Calculate Unit Cost?

Unit Cost calculator uses Unit Cost = Total Cost/Total Units Produced to calculate the Unit Cost, The Unit Cost refers to the average cost incurred to produce a single unit of a product, calculated by dividing total production costs by the number of units produced. Unit Cost is denoted by UC symbol.

How to calculate Unit Cost using this online calculator? To use this online calculator for Unit Cost, enter Total Cost (TC) & Total Units Produced (TUP) and hit the calculate button. Here is how the Unit Cost calculation can be explained with given input values -> 59.47368 = 56500/950.

FAQ

What is Unit Cost?

The Unit Cost refers to the average cost incurred to produce a single unit of a product, calculated by dividing total production costs by the number of units produced and is represented as UC = TC/TUP or Unit Cost = Total Cost/Total Units Produced. Total Cost is the sum of all expenses incurred in the production and delivery of goods or services, including both fixed and variable costs & Total Units Produced is the complete quantity of goods manufactured during a specific period.

How to calculate Unit Cost?

The Unit Cost refers to the average cost incurred to produce a single unit of a product, calculated by dividing total production costs by the number of units produced is calculated using Unit Cost = Total Cost/Total Units Produced. To calculate Unit Cost, you need Total Cost (TC) & Total Units Produced (TUP). With our tool, you need to enter the respective value for Total Cost & Total Units Produced and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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