GlossaryEN1 min readUpdated: Jun 26, 2026
Unit Cost
Unlike aggregate cost figures or cost pools, unit cost refers to the calculated expense attributable to a single product unit or service delivery.
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Source: https://www.investopedia.com/terms/u/unit-cost.asp
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Logistics Concept
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Definition & Explanation
Unlike aggregate cost figures or cost pools, unit cost refers to the calculated expense attributable to a single product unit or service delivery. It combines directly assignable components—materials, labour, transport—with an allocated share of overhead such as warehouse rent, energy, and administration. In freight forwarding and logistics, unit costs underpin quote preparation, profitability assessments for individual routes or warehouse locations, and supplier benchmarking. Higher volumes typically push unit costs down through economies of scale, a dynamic that directly shapes pricing strategy. Unit cost should not be confused with unit price, which reflects the revenue side of the transaction rather than the cost side.
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