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average cost

   Also found in: Dictionary/thesaurus, Medical, Wikipedia, Hutchinson 0.01 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
 
The average cost of renting a house in London fell 17% between April and September 2008 as a result.
London rental market prices 'are beginning to level out' by The Evening Standard (London, England)
The Mazda 6 was the only car to receive an "acceptable" rating — one rating below "good," the top rating — based on the average cost to repair front, rear and corner bumpers following a 6 mph crash.
Crash tests show midsize bumpers costly to repair by The Associated Press / AP News
However, in their opinion, the average cost of bread was 4.
Brit teens know the cost of an iPod, but not of bread by Asian News International
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