Business GCSE
Average cost
What Average cost means in Business GCSE, as defined for AQA.
Definition of Average cost
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Reference: AQA
The cost per unit, which falls as fixed costs are spread over more units when output rises.
Topics that use Average cost
- Expanding a business (AQA GCSE)
Related terms
- Diseconomies of scale
- Economies of scale
- External growth
- Fixed Costs
- Franchising
- Horizontal, vertical and conglomerate integration
- Internal (organic) growth
- Internal and external factors
Using Average cost in the exam
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