What does billing in units mean?

Billing in units refers to the practice of charging customers based on discrete quantities of a product or service consumed, rather than a flat fee. This approach is commonly used in industries like utilities, telecommunications, and healthcare, where usage can vary significantly. Each unit represents a measurable amount, such as kilowatt-hours for electricity or minutes for phone calls, allowing for transparent billing that aligns with actual consumption. This method can help customers understand their costs better and encourages efficient usage.