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  2. Share Prices
  3. Finance Glossary
  4. Terms Beginning With A
  5. Average Cost

Average Cost

Definition of 'Average Cost'

The total cost of a production run divided by the quantity produced. Confusion often arises where a company produce more than one product, and costs are not easily attributable to a specific product, or it is a matter of judgement.

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Related Terms

Weighted Average Cost of CapitalWACCAverage Collection PeriodCapital Weighted Average IRRDebtors Conversion PeriodStock PeriodCurrent Cost AccountingWork-in-progress PeriodSunk CostACPConvergence HypothesisCredit PeriodFinished Goods Inventory PeriodWeighted AverageMinimum Efficient ScaleRealised Gain MultipleRealized Gain MultipleBenefit-Cost RatioBook CostCCA

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