Cost associated with each unit produced. cost per unit of product a = total cost/number of units = $120,000/300= $400; cost per unit of product b = $140,000/400= $350; cost per unit of product c = $190,000/ 500= $380 . key takeaways. a cost driver is the most appropriate way of calculating or determining a specific cost.. Define cost. cost synonyms, cost pronunciation, cost translation, english dictionary definition of cost. n. 1. an amount paid or required in payment for a purchase; a price. 2.. Cost computation: it is the source of all other functions of cost accounting as we can calculate the cost of sales per unit for a particular product. cost reduction: cost computation helps the company reduce costs on projects and processes. reduction in costs means more profits since the margin will naturally increase..
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The cost estimate is the product of the cost estimating process. the cost estimate has a single total value and may have identifiable component values. a problem with a cost overrun can be avoided with a credible, reliable, and accurate cost estimate. a cost estimator is the professional who prepares cost estimates..
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