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The Unit Raw Cost of an Item is how much you will have to pay for the Item, without any Markups such as taxes (hence "Raw"), for each Bid Unit. For instance, for a paint Item, the Bid Unit could be in square feet (SF). If you enter the raw cost of the paint per square feet, your Material Unit Raw Cost would be the same as your Material Raw Cost. If you add the labor cost per square foot to the it, your Labor Unit Raw Cost is the same as your Labor Raw Cost.
But it would be more helpful to enter the cost of paint per gallon, and the cost of labor per hour. If you have Level 2 or above, you can use Conversion Factors to figure the materials (the gallons of paint) and labor (hours spent painting). In this case, your Bid Unit would remain as SF, but your Material Order Unit would be "Gallons", and your Labor Order Unit would be "Hours". Now, the Material Raw Cost is the cost of paint per gallon, and the Labor Raw Cost is the cost of labor per hour.
The Material Unit Raw Cost is the cost of material per Bid Unit, in this case per SF. This cost will be effected by the Material Raw Cost, Material Conversion Factor, and Material Rounding Direction and Factor. Why does the Rounding Factor effect the Unit Raw Cost? Because it takes just as many cans of paint (one) to paint one square foot as 100 square feet, but the cost per square foot is much lower if you paint 100 square feet! If the Bid Quantity is zero, or in the Price Book Items, the Unit Raw Cost does not take into account rounding because the actual Quantity needed is not yet known. The Labor Unit Raw Cost would tell you how much it costs to have the painter paint a square foot, not an hours worth. The Item Unit Raw Cost is the sum of all columns (in this case Material and Labor, but could also have Equipment, Subcontractor, and Other costs) Unit Raw Costs.
A Cost Column’s Unit Raw Cost by dividing its Extended Raw Cost by the Bid Quantity. Similarly, the Item’s Unit Raw Cost is just its Raw Cost divided by the Bid Quantity.
Unit Costs (not Raw) and Unit Prices are like the Unit Raw Costs, only with Markup Percentages added. Unit Costs have only Cost Markups added – generally taxes. Unit Prices have all Markups added, including Overhead and Profit if you enter them.
For more details and examples, see How the System Calculates Costs and Prices.
See Also: Markup List, Cost Type Markups, Cost vs. Price, Bid Item List, Bid Item Form
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