What is non-divisible cost?

Non-divisible cost refers to expenses that cannot be divided or allocated on a per-unit basis, often associated with fixed costs that do not change with the level of production or output. These costs remain constant regardless of the number of units produced, making them difficult to assign to individual products or services. Examples include rent, salaries, and certain overhead expenses. Understanding non-divisible costs is crucial for businesses when analyzing profitability and making pricing decisions.