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average cost
(redirected from Average total costs)

    Also found in: Medical, Wikipedia, Hutchinson 0.02 sec.
Average cost
In the context of investing, refers to the average cost of shares or stock bought at different prices over time.
average cost
A cost amount calculated by dividing the total cost by the units of production. Thus, if a firm produces 10,000 units of output for a total cost of $25,000, the average cost of each unit is $25,000/10,000 units, or $2.50 per unit. Average cost is made up of costs remaining unchanged throughout a range of output and costs varying directly with output. Firms with the lowest average cost in an industry have a competitive advantage in the event of severe competition and price cutting.


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? Mentioned in ? References in periodicals archive
 
In July 2004, average total costs of compliance were estimated to be $3.
Ask FERF about ... Sarbanes-Oxley Section 404 compliance costs by Sinnett, William M. / Financial Executive
Jones and Butler have proposed that a firm competing mainly with the low cost strategy would have lower average total costs (that are comprised of lower average production costs and lower average transaction costs) vs.
Comparing three different theories of competitive strategies by Wright, Peter; Nazemzadeh, Asghar; Parnell, John; Lado, Augustine / Industrial Management
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