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Explain in Detail :How to Find the Cost Price?
The cost price of an article is the price at which the manufacturer buys the article from the supplier. It includes the cost of raw materials, labour, and other expenses incurred in the production of the article. The cost price is also known as the production cost.
Average Cost Price and Average Cost Formula
The average cost price (ACP) is the average of the cost prices of the goods or services. The average cost (AC) is calculated by dividing the total cost by the number of items.
ACP = (Cost Price of Item 1 + Cost Price of Item 2 +
Cost Price of Item 3 +
Cost Price of Item 4) / 4
AC = (Total Cost) / (Number of Items)
Examples of Average Cost Price
As of 2016, the average cost price for a gallon of gasoline in the United States was $2.37.
As of 2016, the average cost price for a pound of ground beef was $3.72.
