# Unit Cost: Definition, Formula & Calculation

Instructions:

question 1 of 3

### What is the unit cost?

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### 2. Company Z produces 10,000 units in a year. It has fixed costs of \$50,000, direct labor costs of \$50,000, and direct material costs of \$100,000. What is the unit cost for Company Z's product?

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You can use this printable worksheet and interactive quiz to help you understand the concept of the cost of producing one unit of any particular product. You'll be tested on various factors that contribute to the establishment of the unit cost.

## Quiz & Worksheet Goals

In these assessments, you'll be tested on your familiarity with the following:

• Resultant unit cost if the number of units produced is reduced by a certain percentage
• The definition of unit cost
• Examples of fixed and variable costs
• Determine a unit cost by way of an illustrative example

## Skills Practiced

The worksheet and quiz allow you to practice the following skills:

• Reading comprehension - ensure that you draw the most important information from the related lesson on unit cost
• Making connections - use your understanding of the concept of unit cost
• Interpreting information - verify that you can read information regarding factors that affect the determination of unit cost and interpret it correctly