Freight cost per unit is an allocation of a defined shipment cost across the products or units in that shipment. It can help with internal costing, but the result depends on the allocation method. Dividing by item count is simple; it is not always a useful reflection of how different products occupy capacity.
This is an operational worksheet, not advice on statutory accounting or tax treatment. Agree with your own finance team which cost boundary and allocation method should be used for your records.
Choose the cost pool first
Decide whether you are allocating transportation only or transportation plus other agreed shipment-related charges. Keep the same boundary across comparisons. Do not silently include packaging on one order and exclude it on another.
Record currency and whether tax is included. The examples below use hypothetical Canadian-dollar amounts before tax, not WTM tariffs.
Equal-unit cost allocation
Planning arithmetic only. No rates, carrier classification or loading capacity are certified. Inputs stay in this browser.
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The calculator divides one entered cost pool by one quantity. For mixed products, use the allocation worksheet below.
Compare two allocation methods
Suppose a shipment costs $600 and contains 20 units of Product A plus 10 units of Product B. Dividing equally across 30 items assigns $20 per item, regardless of product size.
Now suppose Product A occupies six cubic metres in total and Product B occupies four. A cube-based allocation assigns $360 to A and $240 to B. Per unit, that is $18 for A and $24 for B.
| Method | Product A: 20 units | Product B: 10 units |
|---|---|---|
| Equal item allocation | $400 total; $20 each | $200 total; $20 each |
| Cube-based allocation | $360 total; $18 each | $240 total; $24 each |
Both methods reconcile to $600. Neither is automatically a carrier’s pricing method; they are different internal allocations of the same invoice pool.
Use a method that answers your question
Equal units may work for identical products. Weight, cube or another agreed basis may be more informative for mixed goods. A dedicated handling charge associated with one particular item may need to remain separately identifiable rather than be spread across unrelated products.
Do not claim that a cube-based allocated cost proves the carrier charged by cube. The quote and invoice explain the purchase; the worksheet explains your own distribution of its cost.
Reconcile before drawing conclusions
Multiply each allocated unit cost by its quantity and add the totals. Small rounding differences should be recorded or allocated consistently. A total that does not match the cost pool can turn a budgeting exercise into a misleading product-margin comparison.
Keep the shipment reference, allocation basis and quantities together. When part of an order ships separately, do not allocate the same freight invoice twice to both the original and outstanding units.
WTM can quote the transportation; your worksheet can show what it means for your products. Request a freight quote for the actual packed order and use the invoice available in your Customer Portal as the source for the final cost pool.
