The unit cost is the

price A price is the (usually not negative) quantity of payment or compensation given by one party to another in return for goods or services. In some situations, the price of production has a different name. If the product is a "good" in the c ...

incurred by a

company A company, abbreviated as co., is a Legal personality, legal entity representing an association of people, whether Natural person, natural, Legal person, legal or a mixture of both, with a specific objective. Company members share a common p ...

to produce, store and sell one unit of a particular product. Unit costs include all

fixed costs In accounting and economics, 'fixed costs', also known as indirect costs or overhead costs, are business expenses that are not dependent on the level of goods or services produced by the business. They tend to be recurring, such as interest or re ...

and all

variable costs Variable costs are costs that change as the quantity of the good or service that a business produces changes.Garrison, Noreen, Brewer. Ch 2 - Managerial Accounting and Costs Concepts, pp 48 Variable costs are the sum of marginal costs over all u ...

involved in production. Cost unit is a form of measurement of volume of production or service.

Cost unit vs unit cost

Cost unit is the standard unit for buying the minimum of any product. Unit cost is the minimum cost for buying any standard unit.

References

{{Business-term-stub Costs