unit cost

USAGE SUMMARY

The phrase "unit cost" is correct and can be used in written English.
It is commonly used in the context of business and economics to refer to the cost of producing or purchasing one unit of a product or service. Example: "The unit cost of manufacturing each product has decreased due to our new efficient production methods." In this sentence, "unit cost" refers to the cost per individual unit of the product being manufactured.

✓ Grammatically correct

News & Media

Science

Encyclopedias

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

That means the unit cost of electricity drops.

The New York Times

It was like a cleansing: the storage unit cost about $200 a month.

The New York Times - Magazine

Its big idea was the experience curve — over time, unit cost decreases as experience increases.

The New Yorker

What is the point in comparing media product types of different unit cost and distribution mechanism?

The Guardian - Books

Her unit cost $800,000, she said, estimating that today it might fetch $5 million.

The New York Times

Each doubling of production generally yields a cut of one-fifth in unit cost per plane.

The Economist

It was a risky operation, involving speculatively high initial printings to keep down the unit cost.

Encyclopedia Britannica

Unit cost under variable costing represents the average variable cost of making the product.

Encyclopedia Britannica

Still, the unit cost $210,000, so Jonathan had money left over for new, larger appliances.

The New York Times

ith generating unit cost function.

International Journal of Energy and Environmental Engineering

w i : Unit cost of inputs.

Journal of Cloud Computing

Expert writing Tips

Best practice

When analyzing profitability, compare the "unit cost" to the selling price to determine the profit margin per unit. This comparison helps in understanding the profitability of individual products or services.

Common error

Avoid using "unit cost" when you actually mean total cost. "Unit cost" refers to the cost of a single item, while total cost encompasses all expenses. For instance, instead of saying "The unit cost of the project was $1 million", clarify it as "The total cost of the project was $1 million".

Linguistic Context

The phrase "unit cost" functions as a noun phrase, typically used as a subject or object in a sentence. It refers to the expense incurred for a single unit of a product or service. Ludwig AI indicates this phrase is correct and frequently used.

Expression frequency: Very common

Frequent in

Science

34%

News & Media

34%

Encyclopedias

9%

Less common in

Formal & Business

9%

Wiki

0%

Social Media

0%

Ludwig's WRAP-UP

In summary, "unit cost" is a commonly used noun phrase that refers to the cost associated with a single unit of a product or service. It is grammatically correct and primarily used in professional and neutral contexts, such as business, science, and news media. Ludwig AI confirms its widespread use and acceptability. To ensure clarity in your writing, remember that the "unit cost" represents the cost of a single item, distinct from the total cost. Consider using related phrases like "cost per unit" or "average cost per unit" depending on the specific context. By understanding its definition and usage, you can effectively communicate financial information.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

cost per unit

Rephrases the original term using a slightly different prepositional structure while maintaining the same meaning.

cost per item

Focuses on individual items rather than the broader "unit", but relates closely to the core concept.

per-unit cost

Uses a hyphenated form to emphasize the "per unit" aspect.

average cost per unit

Specifies that the cost is an average, providing a more precise description.

cost per piece

Similar to cost per item, but typically used when referring to physical objects.

production cost per unit

Specifically refers to the costs associated with producing a single unit.

direct cost per unit

Focuses only on costs directly attributable to the production of each unit, excluding overhead.

individual cost

Highlights the cost of a single, separate item or unit.

marginal cost

Focuses on the incremental cost of producing one additional unit.

cost of goods sold (COGS)

Broader term referring to the direct costs attributable to the production of the goods sold by a company.

FAQs

How do you calculate the "unit cost"?

To calculate the "unit cost", divide the total production costs by the number of units produced. This gives you the average cost for each unit.

What is included in the "unit cost"?

The "unit cost" typically includes direct materials, direct labor, and manufacturing overhead. It's crucial to account for all relevant expenses to get an accurate figure.

What's the difference between "unit cost" and "unit price"?

The "unit cost" is what it costs to produce or acquire an item, while "unit price" is the amount for which that item is sold. The difference between them determines the profit margin.

What are some strategies to reduce "unit cost"?

Strategies to reduce "unit cost" include improving production efficiency, negotiating better prices with suppliers, and streamlining operations. These efforts can lead to significant cost savings.