Unit Cost

Tax Glossary Definition

Unit Cost

Unit cost is the total expense incurred to produce, store, and sell a single unit of a product or service. It includes: Fixed costs: Costs that remain constant regardless of production volume (e.g., rent, depreciation). Variable costs: Costs vary based on Output (e.g., raw materials, labor).

Example: A company manufactures 1,000 chairs. The fixed costs (rent, machinery depreciation) are ₹50,000, and variable costs (wood, labor) are ₹1,50,000. Unit Cost = (Fixed Costs + Variable Costs) ÷ Units Produced = (50,000 + 1,50,000) ÷ 1,000 = ₹200 per chair.

India's Most Trusted
Pro Tax Filer

Discover why we're one of India's most trusted Pro Tax Filers, built on a foundation of accuracy and reliability.

  • We ensure maximum tax benefits.

  • Taxes? Handled by our CAs and experts.

  • Reliable, year-round tax support at no cost.

  • Satisfaction or your money back came twice.

Start Filing

Scan the QR code to Download the app

Mobile App Available on:

DOWNLOAD For IPHONE

TaxFilr App

DOWNLOAD For Android

TaxFilr App

Have Questions? Let’s Talk!

Chat With Us

Scan to chat

Scan QR Code

OR
Start Chat
Mobile Apps Available On
This feature is available on our mobile app. Get the app now to access this feature!

DOWNLOAD For IPHONE

TaxFilr App

DOWNLOAD For Android

TaxFilr App