Unit costs Flashcards
1
Q
What is the abbreviation for total cost
A
TC
2
Q
What are unit costs
A
A measure of operational performance that assesses the average cost of producing each unit of output
3
Q
What is the formula to workout unit costs
A
Total costs ÷ output
4
Q
When do unit costs fall?
A
The total costs fall, but the same output is produced
More output is produced without increasing total costs
5
Q
What are some methods to cut unit costs
A
Increase labour or capital productivity
Reduce the costs of raw materials
Reduce storage costs
Reduce wastage
6
Q
A
