Correcting a backbow on a guitar with single action truss rod - Duration: 4:25. Paul Doyle 2,591 views
The cost per unit is commonly derived when a company produces a large number of identical products. The cost is derived from the variable costs and fixed costs incurred by a production process, divided by the number of units produced.
Definition of Variable Cost. Variable costs are expenses that fluctuate proportionally with the quantity of output. Variable costs are directly tied to the activities of producing volume, which rises when these activities increase and falls when activities decrease.his cost per unit is the variable cost of each variable unit produced, or in other words the additional cost incurred for the production of each spark plug. For example, if the business produced 1,000 more units, it would expect to incur additional production costs of $180.