Regulation 2 - Definitions - Competition Commission Of India (Determination Of Cost Of Production) Regulations, 2025

2. Definitions. (1) In these regulations, unless the context otherwise requires (a) Act means the Competition Act, 2002 (12 of 2003); (b) average variable cost means total variable cost divided by total output during the referred period; (c) Cost as used in Regulation 3 and its derivation may have reference to: i. total cost means the actual cost of production including items, such as cost of material consumed, direct wages and salaries, direct expenses, depreciation, work overheads, quality control cost, research and development cost, packaging cost, administration overheads attributable to the product during the referred period; ii. total variable cost means the total cost referred to in clause (i) minus the fixed cost and share of fixed overheads attributable to the product, if any, during the referred period; iii. total avoidable cost means the cost that could have been avoided if the enterprise had not produced the quantity of extra output during the referred period; iv. average avoidable cost is the total avoidable cost divided by the total output during the referred period, considered for estimating total avoidable cost ; v. long run average incremental cost (LRAIC) means average of all variable and fixed costs including any sunk costs, that are directly or indirectly attributable to the production of a specific product or service, including any product-specific fixed costs incurred before or during the period under investigation. In the case of multi-product enterprises, LRAIC also includes a proportionate share of common costs, to the extent that such costs are caused by or incrementally attributable to the production of the product or service in question; vi. average total cost is total cost divided by total output during the referred period ; (d) Commission means the Competition Commission of India established under sub-section (1) of section 7 of the Act ; (e) product means the goods or services, as the case may be, as defined in the Act; (f) marginal cost is the change in total cost that arises when the quantity produced changes by one unit. (2) Words and expressions used but not defined in these regulations shall have the same meaning respectively assigned to them in the Act or the Companies Act, 2013 (18 of 2013) , as the case may be.