Measures the total cost of a product, including manufacturing, shipping, and customs, per unit.
What it Measures ?
Calculates total cost per unit including shipping, duties, etc.
Relevant StakeHolders
Procurement Controller, Finance Head
Why it Matters ?
Improves landed cost visibility and reduces spend.
In-depth Use Case / Real-world Example
A company importing raw materials calculates Landed Cost per Unit by adding the cost of goods, transportation, and customs fees and dividing by the number of units imported. For example, if the total cost is ₹5 lakh for 1000 units, the Landed Cost per Unit is ₹500. This helps the company understand the true cost of imported goods and price products accurately.
Sample Formula
Total Landed Costs / Units Purchased