What comprises the landed price of a product?

The correct answer identifies that the landed price of a product includes the complete set of costs incurred to get a product from the manufacturer to the buyer. This encompasses not just the manufacturer’s selling price, but also any additional costs such as freight (shipping expenses), insurance (protection against potential losses during transportation), and any applicable taxes or tariffs imposed along the way.

Calculating the landed price is crucial for businesses involved in international trade as it provides a comprehensive understanding of the total cost involved in procuring goods. This understanding helps in pricing strategies, calculating profitability, and making informed purchasing decisions. Ignoring any of these components could lead to underestimated costs, ultimately impacting the financial viability of the product in the market.

Other options do not account for the entire scope of costs involved. For instance, solely considering the manufacturer selling price or just shipping costs fails to encapsulate the additional financial responsibilities incurred during the transportation and regulatory processes.