The Unit price or the unit cost tells us how much a product we will buy per litre, per kilogram, per ounce, per gram, etc.For example, you are thirsty, and you have to go to the market to buy water and come in front of the shelf and see two options: the first smaller option is to purchase 1l of water for $ 1, and the second option is to buy 5l of water for $ 3.50. Which is a better option.