Cost Per Unit (CPU)

Cost Per Unit (CPU) represents the total expense incurred to produce, store, and deliver a single unit of a product. This metric is fundamental for pricing strategies, profitability analysis, and procurement decisions.

CPU typically includes:

• Direct material costs
• Direct labor costs
• Manufacturing overhead
• Storage and handling expenses
• Transportation costs

By tracking CPU over time and across suppliers, businesses can identify cost-saving opportunities and negotiate better terms with vendors. Advanced RFQ software solutions help compare supplier quotes based on comprehensive CPU calculations rather than just initial purchase prices.