LANDED COST Meaning and
Definition
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Landed Cost is a financial term that refers to the total cost of a product or item when it is delivered and available for sale at a specific location. It represents the final cost incurred by a business to acquire and bring goods from the supplier's location to the business's location. This cost includes not only the purchase price of the product but also all additional expenses associated with transportation, import duties, customs fees, handling charges, insurance, and any other charges incurred during the shipment and importation process.
The concept of landed cost is particularly significant for businesses engaged in international trade, as it helps them accurately determine the true cost of acquiring goods from overseas suppliers. By considering all expenses related to transportation and customs clearance, businesses can gain a comprehensive understanding of the overall cost involved in the procurement process.
Landed cost is essential for businesses to make informed decisions regarding pricing, profitability, and supply chain management. It allows for accurate calculation of product costs, enabling businesses to price their products competitively in the market. Additionally, it helps in analyzing supplier options, comparing quotes, and identifying cost-saving opportunities throughout the supply chain.
Overall, landed cost provides a comprehensive perspective on the actual cost of procuring goods, helping businesses to evaluate and strategize their international trade operations effectively.
Common Misspellings for LANDED COST
- kanded cost
- panded cost
- oanded cost
- lznded cost
- lsnded cost
- lwnded cost
- lqnded cost
- labded cost
- lamded cost
- lajded cost
- lahded cost
- lansed cost
- lanxed cost
- lanced cost
- lanfed cost
- lanred cost
- laneed cost
- landwd cost
- landsd cost
- landdd cost
Etymology of LANDED COST
The word "landed cost" originates from the combination of two separate terms: "landed" and "cost".
The term "landed" refers to the act of coming to rest upon or reaching the shore after a journey by water. It stems from the Old English word "landian", which means "to land or to come ashore".
The term "cost" has its roots in the Latin word "constare", which means "to stand at, to stop, or to halt". Over time, it evolved into the Old French word "coste", which means "side" or "slope".
When these two terms are combined, "landed cost" describes the total cost incurred by importing or exporting goods, including the price of the product, transportation charges, duties, taxes, and additional expenses associated with the movement of goods across international borders.
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