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Landed Cost
Definition
The total cost of getting a product from the manufacturer to the destination warehouse or distributor, including manufacturing cost, freight, duties, handling, and other logistics expenses. It represents the true cost basis before markup or margin.
How It's Calculated
Product cost + freight + duties + handling + accessorial fees.
Example
A beverage manufacturer calculates its landed cost at $7.40 per case after adding inbound freight and warehouse handling charges to the $6 production cost.
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