Unit price is the price assigned to one stated unit of a product or service, such as each item, kilogram, hour, case, or month. The unit of measure must be explicit for buyers to compare quotations and calculate line totals correctly.
Quick reference for Unit price
| Check | What it means for the transaction |
|---|---|
| Category | Pricing and profitability |
| Record to keep | Record the cost basis, currency, quantity, customer scope, effective period and approval behind the amount when they apply. |
| Do not infer | A price label alone does not establish margin, landed cost or the final invoiced amount. |
Unit price and nearby terms
- Bid comparison: Bid comparison is the process of normalizing supplier quotations so prices, units, specifications, lead times, freight, taxes, payment terms, and exceptions can be evaluated on the same basis.
