Centre county Pennsylvania, USA | Return on Cost (ROC) is often used as a measure of financial performance for commodity producers. ROC can also be used to estimate cost of production as that cost where ROC is zero, assuming that mean (statistical expectation) market price is cost of production.
FWIW, attached histograms of ROC from most recent 240 months of Mundi data shows that ROC for corn, urea, and crude production have (approximately) normal distributions with mean and standard deviation of:
commodity_____ROCmean_____ROCstddev
corn____________0.2 %_________6.2%
urea____________0.5%__________9.4%
crude___________0.7%__________8.3%
data source:
http://www.indexmundi.com/commodities/?commodity=corn&months=360&co...
 (monthly ROC histograms.jpg)
Attachments
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 monthly ROC histograms.jpg (62KB - 209 downloads)
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Return On Cost for corn, urea, crude (EDIT, added histograms)
