Landed Cost
Finance
Landed Cost
Total cost of a purchased item delivered to the point of use, including price, freight, duty, insurance and handling.
Examples
- 01The landed cost of a cast part from Asia is EUR 6.40, including a EUR 4.90 purchase price, sea freight, 4 % duty, insurance and handling.
- 02Purchasing compares landed cost, not unit price, when it reviews offers from a local supplier and an overseas supplier.
- 03A European supplier with a 10 % higher price wins the order because its landed cost is lower once freight and safety stock are included.