Total Delivered Cost (TDC) is the amount of
money
Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular country or socio-economic context. The primary functions which distinguish money are: m ...
it takes for a
company
A company, abbreviated as co., is a Legal personality, legal entity representing an association of legal people, whether Natural person, natural, Juridical person, juridical or a mixture of both, with a specific objective. Company members ...
to
manufacture and deliver a
product. Its components are:
*Total
Manufacturing Cost
Manufacturing cost is the sum of costs of all resources consumed in the process of making a product. The manufacturing cost is classified into three categories: direct materials cost, direct labor cost and manufacturing overhead. It is a factor ...
: Costs incurred up to and inclusive of the
production of finished and wrapped
pallet
A pallet (also called a skid) is a flat transport structure, which supports goods in a stable fashion while being lifted by a forklift, a pallet jack, a Loader (equipment), front loader, a Jack (mechanical), jacking device, or an erect cra ...
s or
unit loads, fit for introduction into the warehousing and
distribution chain.
*Product Supply Non-Manufacturing Expense: Administrative and developmental costs associated with the purchase of
material
A material is a matter, substance or mixture of substances that constitutes an Physical object, object. Materials can be pure or impure, living or non-living matter. Materials can be classified on the basis of their physical property, physical ...
s,
engineering
Engineering is the practice of using natural science, mathematics, and the engineering design process to Problem solving#Engineering, solve problems within technology, increase efficiency and productivity, and improve Systems engineering, s ...
,
design
A design is the concept or proposal for an object, process, or system. The word ''design'' refers to something that is or has been intentionally created by a thinking agent, and is sometimes used to refer to the inherent nature of something ...
of a plant worthy production process, and administrative costs required to manage it.
*Finished Product Logistics Costs: Costs incurred from the entry of finished, wrapped pallets, or unit loads to the warehousing and distribution chain, until delivery of cases to the customer's receiving dock.
References
*
Costs
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