Landed costs are independent of FOB terms.

Question

Quizplus · Accepted Answer

Landed costs are not independent of FOB terms. FOB (Free on Board) terms determine the point at which ownership and responsibility for the goods transfer from the seller to the buyer. Landed costs, on the other hand, refer to the total cost of getting the goods to the buyer's location, including transportation, customs duties, taxes, and other fees. The FOB terms can impact the calculation of landed costs, as they may determine which party is responsible for certain expenses.

Landed Costs Are Independent of FOB Terms