A graphical depiction of the average cost per unit to produce a product for a given level of output based on current technology and scale employed by existing firms.
A method for setting transfer prices equal to marginal costs to help managers identify the optimal output levels for maximizing profits when there is no market for goods and services traded between divisions of an organization.
The Production-Unit Method is a technique for calculating depreciation where the depreciation charge is based on the number of units produced by machinery over its useful life.
An expense containing both fixed and variable cost elements, impacting overall costs depending on the level of business activity.
Variable cost refers to expenses that change in proportion to the production output or sales volume. They fluctuate based on the operational activity, such as material costs, labor costs, and utility expenses.
Variable costs are expenses that change in proportion to the level of activity or volume of production a business undertakes.
