Cost per finished piece is known as which term?

• A. Markup
• B. Public Domain
• C. Unit Cost
• D. Copyright

Answer: (C)

Calculating how much it costs to produce a single finished piece. This measure is called unit cost. It represents the cost to manufacture one item and is found by adding together all the costs involved in making the item—materials, labor, and a fair share of overhead—and then dividing by the number of units produced. This helps you understand profitability and set prices, because it reflects the actual cost per piece regardless of batch size. It’s different from markup, which is the amount you add on top of cost to determine selling price. Public domain and copyright are legal terms and not related to production costs. So unit cost is the term that best fits cost per finished piece.