Landed cost

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Landed cost is costs that according to GAAP should be part of cost of goods sold (CoGS).

CoGS can be divided into the following basic parts:

  • The purchase price
  • Customs fees or other fees related to the purchase
  • Freight
  • Other handling fees

The purchase price is traditionally the "cost" of the product. However, for some products the other costs can be a big part of the cost for selling the goods. For these products it's important to track these other costs, so called landed costs.