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Batch Yield and Unit Cost Reference

Compare sellable-unit cost across batch yields while a hypothetical $1,000 batch cost stays fixed, including the fully rejected-batch case.

By PriceAndProfit Editorial Updated

Yield is the proportion of started units that meet the sellable specification. The example spends $1,000 on the whole batch regardless of the rejection count. Rejected output therefore raises the cost carried by each good unit. The table does not assume that rejected goods can be sold or that their costs disappear.

Yield = good units ÷ 100 started; unit cost = $1,000 ÷ good units
Hypothetical worked values; no market or statutory rates
Units startedGood unitsYieldCost per good unit
100 100 100% $10.00
100 95 95% $10.53
100 90 90% $11.11
100 80 80% $12.50
100 50 50% $20.00
100 0 0% Undefined; $1,000 batch cost remains

How to read and reuse this example

Count good output after the quality checks needed for sale, not at the first production stage. Add any extra rework labor and materials to total batch cost before dividing. If salvage produces documented recovery, show it separately and explain whether it reduces the cost pool. Record setup and teardown once, including them either in labor or overhead.

Boundaries and exceptions

At zero good output there is no valid sellable-unit denominator. The batch has still consumed resources, so reporting a zero unit cost would mislead. The table uses whole pieces; for continuous production, use consistent sellable pounds or gallons instead. Displayed cents are rounded, so multiplying a displayed unit cost by output may differ slightly from the original batch total.

Method reference: OpenStax: Basic Cost Behavior Patterns. Checked October 22, 2026. Cost classifications and activity assumptions; allocations do not establish avoidable costs.

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