GlossariesGCSE GlossariesGCSE Business GlossaryUnit Cost

Unit Cost - GCSE Business Definition

Reviewed by: Steve Vorster

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A unit cost is the average cost incurred by a business to produce, store, and sell one unit of a product. It is calculated by dividing the total production costs by the number of units produced. Understanding unit cost is crucial for businesses, as it helps set the right price for their products, ensuring they cover their costs and make a profit.

For GCSE Business students, grasping the concept of unit cost is important as it helps to analyse the efficiency of production processes, make informed pricing decisions, and improve overall financial management.

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Steve Vorster

Reviewer: Steve Vorster

Expertise: Economics & Business Subject Lead

Steve has taught A Level, GCSE, IGCSE Business and Economics - as well as IBDP Economics and Business Management. He is an IBDP Examiner and IGCSE textbook author. His students regularly achieve 90-100% in their final exams. Steve has been the Assistant Head of Sixth Form for a school in Devon, and Head of Economics at the world's largest International school in Singapore. He loves to create resources which speed up student learning and are easily accessible by all.

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