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Preferred term

landed cost  

Definition

  • According to the Institute of Supply Management, landed cost is “the total accumulation of costs for an imported item, including purchase price plus freight, handling, duties, customs clearance and storage to a designated point of delivery.” A firm that focuses on the item's initial purchase price alone may significantly underestimate the real cost of acquiring and bringing that item to its final delivery point. Accordingly, when making purchasing decisions, landed cost should be the basis of comparison between potential suppliers of a given item. [Source: Encyclopedia of Business in Today's World; Landed Cost]

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https://concepts.sagepub.com/social-science/concept/landed_cost

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