Average Unit Cost

Views Updated: Dec 15, 2025

Abbreviation

AUC

Pronunciation

/ˈævərɪʤ ˈjunɪt kɔst/

This strategy might be rational if, in the long run with a large fixed capacity, the achievement of market share substantially contributed to the fall in average unit cost.
The weighted average unit cost is computed by dividing the total cost of goods available for sale by the number of units available for sale.
The total costs of oilfield exploration can be divided, according to exploratory area, contract method, and the type of well, into simple groups in order to evaluate separately the influence of drilling footage and average unit cost on the total costs.
In increasing an enterprise's economic benefit, shutting down oil and gas wells of low production rates is considered to be of a necessary measure, which can lower the average unit cost and increase the enterprise's economic benefit.
The building of criteria of cost sharing of thermoeconomics & the application of average unit cost, the theory of LIFO and the respectively advantages.

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