Confused about rate field in BOM Item

I’m a little confused about what the rate field represents in the BOM Item table. I assume it’s the rate based on stock uom since it can be the price list rate/valuation rate/last buying price.

Any clarification is greatly appreciated.

Hope this helps.

Item’s rate is fetched for getting estimated costing for the production of an item. You can option to choose from multiple sources of item prices, based on your business case.

Thanks. I’m mainly confused because amount calculations for each bom item row are done using rate and qty, where qty is based on the required uom. If the rate is based on the stock uom shouldn’t the calculations use stock_qty