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Average cost information


In economics, average cost (AC) or unit cost is equal to total cost (TC) divided by the number of units of a good produced (the output Q):

Average cost is an important factor in determining how businesses will choose to price their products.

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Average cost

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In economics, average cost (AC) or unit cost is equal to total cost (TC) divided by the number of units of a good produced (the output Q): A C = T C Q...

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Dollar cost averaging

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Dollar cost averaging (DCA) is an investment strategy that aims to apply value investing principles to regular investment. The term was first coined by...

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Average cost method

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Average cost method is a method of accounting which assumes that the cost of inventory is based on the average cost of the goods available for sale during...

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Average variable cost

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Q {\displaystyle AVC={\frac {VC}{Q}}} Average variable cost plus average fixed cost equals average total cost (ATC): A V C + A F C = A T C . {\displaystyle...

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Average fixed cost

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In economics, average fixed cost (AFC) is the fixed costs of production (FC) divided by the quantity (Q) of output produced. Fixed costs are those costs...

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Weighted average cost of capital

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The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets...

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Cost curve

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various types of cost curves, all related to each other, including total and average cost curves; marginal ("for each additional unit") cost curves, which...

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Average cost pricing

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Average cost pricing is one of the ways the government regulates a monopoly market. Monopolists tend to produce less than the optimal quantity pushing...

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Marginal cost

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the marginal cost is the slope of the total cost, the rate at which it increases with output. Marginal cost is different from average cost, which is the...

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Cost

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Path cost is a term in networking to define the worthiness of a path, see Routing. Average cost Cost accounting Cost curve Cost object Direct cost Fixed...

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Cost of goods sold

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formulas, including specific identification, first-in first-out (FIFO), or average cost. Costs include all costs of purchase, costs of conversion and other costs...

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Cost of capital

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opportunity cost of capital. If a project is of similar risk to a company's average business activities it is reasonable to use the company's average cost of capital...

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Cost accrual ratio

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The Cost Accrual Ratio for a business is the total average cost per person per unit time, e.g. average cost per day per person. It is only useful for...

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Average high cost multiple

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In unemployment insurance (UI) in the United States, the average high-cost multiple (AHCM) is a commonly used actuarial measure of Unemployment Trust...

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Cost price

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Cost prices appear in several forms, such as actual cost, last cost, average cost, and net realizable value. Cost price is also known as CP. cost price...

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Levelized cost of electricity

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The levelized cost of electricity (LCOE) is a measure of the average net present cost of electricity generation for a generator over its lifetime. It...

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Weighted average cost of carbon

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The Weighted average cost of carbon is used in finance to measure a firm's specific cost of carbon. It expresses how much an organization is expending...

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Cost of electricity by source

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assist governments in making decisions regarding energy policy. On average the levelized cost of electricity from utility scale solar power and onshore wind...

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Economic cost

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cost (TFC) Average cost (AC) are total costs divided by output. AC = TFC/q + TVC/q Average fixed cost (AFC) is equal to total fixed cost divided by output...

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Monopolistic competition

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only break even in the long run because demand will decrease and average total cost will increase, meaning that in the long run, a monopolistically competitive...

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Cost of equity

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cost of capital, which consists of the two types of capital costs, is then determined as the weighted average cost of capital. Knowing a firm's cost of...

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Natural monopoly

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sufficient but not necessary for ray average cost to be strictly declining. Proposition: Strictly declining ray average cost implies strict ray subadditivity...

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Perfect competition

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allocatively efficient, as output will always occur where marginal cost is equal to average revenue i.e. price (MC = AR). In perfect competition, any profit-maximizing...

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Cost of drug development

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analysis of the drug development costs for 98 companies over a decade, the average cost per drug developed and approved by a single-drug company was $350 million...

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National Average Drug Acquisition Cost

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The National Average Drug Acquisition Cost (NADAC) is the approximate invoice price pharmacies pay for medications in the United States. This applies...

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Economies of scale

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enterprise. When average costs start falling as output increases, then economies of scale occur. Some economies of scale, such as capital cost of manufacturing...

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Job costing

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nature. Conversely, job costing systems assign costs to distinct production jobs that are significantly different. An average cost per unit of product is...

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Investment

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lines, moving averages, and the Average Directional Index (ADX) to determine the existence and strength of trends. Dollar cost averaging (DCA), also known...

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