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Total Average Cost

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  • Average cost pricing — is one of the ways government regulate a monopoly market. Monopolists tend to produce less than the optimal quantity pushing the prices up. Government may use average cost pricing as a tool to regulate prices monopolists may charge.Average cost… …   Wikipedia

  • Average cost — In economics, average cost is equal to total cost divided by the number of goods produced (the output quantity, Q). It is also equal to the sum of average variable costs (total variable costs divided by Q) plus average fixed costs (total fixed… …   Wikipedia

  • Average cost method — Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts  …   Wikipedia

  • average cost — 1) The average cost per unit of output calculated by dividing the total costs, both fixed costs and variable costs, by the total units of output. 2) (AVCO; weighted average cost) A method of valuing units of raw material or finished goods issued… …   Accounting dictionary

  • average cost — The average cost per unit of output calculated by dividing the total costs, both fixed costs and variable costs, by the total units of output. (AVCO; weighted average cost) A method of valuing units of raw material or finished goods issued from… …   Big dictionary of business and management

  • Average Cost Flow Assumption — A calculation used by companies to monitor inventory goods. The average cost flow assumption is one of a variety of cost flow assumption methods used to determine the cost of goods sold (COGS) and ending inventory. Companies use one or more… …   Investment dictionary

  • Average cost of capital — A firm s required payout to the bondholders and to the stockholders expressed as a percentage of capital contributed to the firm. Average cost of capital is computed by dividing the total required cost of capital by the total amount of… …   Financial and business terms

  • average cost of capital — A firm s required payout to bondholders and stockholders expressed as a percentage of capital contributed ( contributed capital) to the firm. average cost of capital is computed by dividing the total required cost of capital by the total amount… …   Financial and business terms

  • Average Cost —   The total cost of production divided by the total quantity produced.   ***   The revenue requirement of a utility divided by the utility s sales. Average cost typically includes the costs of existing power plants, transmission, and distribution …   Energy terms

  • Average Cost Basis Method — A way of calculating cost basis when figuring out gains or losses from a sale of mutual fund shares. This is done by adding up the number of shares owned as well as the total dollar amount of the shares; the dollar amount is divided by the number …   Investment dictionary

  • Weighted Average Cost — is a method of calculating Ending Inventory cost. It takes Cost of Goods Available for Sale and divides it by the total amount of goods from Beginning Inventory and Purchases. This gives a Weighted Average Cost per Unit. A physical count is then… …   Wikipedia

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