Cost per unit, also called cost of goods sold or cost of sales, is how much money a company must expend to produce one unit of product to sell. It is often included in financial statements.

The frequency with which you should calculate your total cost depends on the nature of your business and how quickly your costs change. However, it's generally a good idea to perform this calculation at least quarterly so you can make timely adjustments to your pricing strategy.

Total Fixed Costs (TFC) are costs that occur independent from your production. Fixed costs have no direct impact on production as you have to bear these costs even if your production continues at zero. For example, the rental cost of your facility building. Total Variable Costs (TVC) are costs that vary depending on production results. For example, raw material costs are directly affected by production. Total cost, on the other hand, is the cost resulting from the sum of the total fixed and variable costs. It is shown as TC (total cost). Total Cost (TC) is calculated by adding the two together