Landed cost accounting is a type of cost accounting that takes into account not only the price for the product purchased (such as raw materials or finished goods) but also any associated costs such as shipping, tariffs, taxes, and insurance. It’s an important tool for businesses to understand their true cost of acquisition for any given product and make informed decisions about where to purchase from and how to mitigate additional expenses. By looking at the full landed cost including all of these elements, businesses are empowered to make data-driven decisions that can maximize profits and minimize waste.