Asked by Dinesh Sivanesan on May 09, 2024
Verified
Landed costs are independent of sales/FOB terms.
Landed Costs
The total price of a product once it has arrived at a buyer's doorstep, including the purchase price, transportation fees, customs, duties, and other taxes.
Sales/FOB Terms
Terms used in international trade to define when and where the responsibility and ownership of goods are transferred from the seller to the buyer; "FOB" stands for Free On Board.
- Grasp the concept of landed costs and their relevance to procurement.
Verified Answer
SS
Sabra SimonMay 11, 2024
Final Answer :
False
Explanation :
Landed costs are directly influenced by sales/FOB (Free On Board) terms, as these terms determine who is responsible for shipping, insurance, and other costs associated with getting the goods from the seller to the buyer.
Learning Objectives
- Grasp the concept of landed costs and their relevance to procurement.