What are unit costs like?

Unit costs in business is like breaking down a total cost into individual component costs where the individual components might be a person, klo, event, piece, item or metre. For example calculating how much each person on the sports team must pay in order to hire a bus to transport them to a game. If the total cost of transporting the team to the game cost is $300 then the coach would need to work out how much each of the 30 team members must pay in order to pay this total cost. So the coach would have to divide the total cost ($300) by the number of team members (30) to calculate a unit cost of $10. So the unit cost of transporting the team to the game would then be $10 per team member.

Author Asked on November 22, 2018 in BSBFIN402.
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