Unit Costs is a term that refers the costs that can be immediately applied to a specific performance or a specific operation. The unit costs include:
- Production material
- Wages and production costs
- Alternatively, other costs - such as the cost of licenses, patents, special packaging, extra shipping costs, extra cost of putting the product into operation, training
The opposite is overhead (or overhead expense).
Use of the unit costs in practice: In the enterprise, the unit costs are used in determining the cost calculation and in cost-effectiveness expenses control.