Business A-Level
unit cost
What unit cost means in Business A-Level, as defined for AQA.
Definitions of unit cost
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Reference: AQA
A cost that falls as higher capacity utilisation spreads fixed costs, though lower unit cost is not the same as higher profit.
Total cost divided by units produced, in pounds per unit, and it falls as output rises because fixed costs are spread further.
Topics that use unit cost
- Analysing operational performance (AQA A-Level)
- Subject content (AQA A-Level)
Related terms
- capacity utilisation
- corporate and functional objectives
- cost now against benefit later
- data quality
- decision context
- five forces
- functional interdependence
- generic strategies
Using unit cost in the exam
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