Average Cost (Noun)
Meaning
Total cost for all units bought (or produced) divided by the number of units.
Classification
Nouns denoting attributes of people and objects.
Examples
- The company calculated the average cost of producing each widget by dividing the total production cost by the number of units manufactured.
- To determine the average cost per pound of coffee, you need to divide the total cost of the purchase by the total weight of the coffee.
- The average cost of a college education can vary significantly depending on the institution and location.
- The retailer determined the average cost of the shipment by adding up the cost of all the items and dividing by the total number of items.
- The farmer calculated the average cost of producing each bushel of wheat by dividing the total cost of seeds, labor, and equipment by the total number of bushels harvested.