The total cost of an ad's clicks divided by the number of clicks over a period: the Avg. CPC column in Google Ads.
Google Ads works out average CPC by dividing the total cost of your clicks by the total number of clicks. Each click's own price is its actual CPC, the least needed to keep your ad's position given the Ad Rank of the ad below yours. The Avg. CPC column averages those over whatever period, campaign or segment you're looking at.
Because it's an average, it moves for reasons that aren't anyone's bid. A month with more mobile clicks, more evening clicks or more clicks on broader searches can cost more per click with nothing changed in any one auction. Segment it before you read it: by keyword, by device, by day of week and by hour of day.
On a brand campaign it's a sensitive signal. Your own ad is the most relevant answer to your name, so the price is usually low, and another advertiser close behind you raises it. The average from weeks with others in your auctions, less the average from weeks without, gives the difference per click; times your clicks, that's what others' bidding adds to your own bill. The brand bidding cost calculator does that sum, and Auction insights shows which weeks had others in them.
Google's own help and policy pages first.