What term refers to the total product cost including logistics such as warehousing, transportation, and duties?

• A. Landed cost
• B. Lead-time offset
• C. Leading indicator
• D. Load

Answer: (A)

Landed cost is the total product cost to bring a good to its destination, including the purchase price plus all logistics and related charges such as freight, insurance, duties, taxes, customs clearance, handling, and warehousing. This concept matters because it reveals the true delivered cost of a product, enabling accurate supplier comparisons and budgeting across different regions or transportation options.

Other terms don’t fit because lead-time offset refers to time-value savings from shorter lead times rather than overall delivered cost, a leading indicator is a predictive metric used in forecasting, and load typically denotes cargo quantity or the act of loading rather than a cost measure.