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Business Definition for: average cost
average cost
Investing: average cost of shares of stock or in a fund bought at different prices. See also
average down
;
average up
;
constant dollar plan
.
Manufacturing: total of fixed and variable costs divided by units of production. Companies with relatively low average costs are better able to withstand price-cutting pressures from competition. Term also describes
inventory
valuation method whereby the cost of goods available for sale is divided by the number of units available for sale.
average cost
total of all costs for all units bought (or produced), divided by the number of units acquired (or produced).
Copyright © 2006, 2003, 1998, 1995, 1991, 1987, 1985 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright © 2007, 2000, 1997, 1987, by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright © 2007, 2000, 1997, 1987, by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
