Click here to try our Accounting Software for free.

What is the difference between Price Per Unit and Cost Per Unit?

Price Per Unit

The Price Per Unit is the sales price of an item; this is what you charge the people who buy it from you. You determine your sales price (what you want to charge your customers for your good and services on invoices).

Most businesses use a standard mark-up on their cost to determine their price. The mark-up percentage is typically based on their industry or product line. To calculate the price based on a standard markup, take the cost of the item times the mark-up percentage to find your sales price. (Note: You may want to round to the nearest dollar, quarter or dime.)

You enter the Price Per Unit when setting up your items. You can change the price at any time.

 

Cost Per Unit

The Cost Per Unit is the amount it cost you to buy the item from a vendor.

You enter Cost Per Unit in several places in WorkingPoint:

 

Related Topics

About inventory

How do I track inventory for an item?