Einingarkostnaður
Einingarkostnaður, also known as unit cost, refers to the total cost of producing one single unit of a product or service. It is calculated by dividing the total production costs by the total number of units produced. This metric is crucial for businesses to understand their profitability, set prices, and make informed decisions about production levels.
The components of unit cost typically include direct costs such as raw materials and direct labor, as
Understanding unit cost helps businesses determine their break-even point, which is the level of sales at which