Unit cost is a cost associated with a single unit of product.

Calculated as : total cost of producing a product or service divided by the number of units in the round or batch.

It is an important metric used in logistics and supply chain management to evaluate the cost efficiency of producing and delivering each unit of a product. It helps in assessing the profitability of individual units and determining the pricing strategy. By analyzing the unit cost, logistics professionals can identify cost-saving opportunities, optimize production processes, and make informed decisions regarding pricing, production volumes, and batch sizes.