Definition

1. Noun:
   • Any cost incurred by a producer, wholesaler, retailer, or distributor: This refers to the expenses associated with the process of making a product or service available to the end consumer. These costs are typically related to activities such as advertising, shipping, warehousing, and logistics.

Usage Examples

• Noun:
  • The company is trying to reduce its distribution cost to increase profit margins.
  • High fuel prices have significantly increased the distribution cost for many manufacturers.
  • When calculating the final price, you must account for the production and distribution cost.

Advanced Usage

• "To allocate distribution costs": to assign or distribute these specific expenses to different products, departments, or regions for accounting purposes.

  • The finance team needs to accurately allocate distribution costs across all product lines.

• "Distribution cost analysis": the detailed examination of these expenses to identify areas for efficiency improvements or cost savings.

  • A thorough distribution cost analysis revealed that consolidating shipments could save 15%.

Variants and Related Words

• Distribution (n): The act or process of delivering products to various points of sale or to customers.
• Cost (n): The amount of money required to pay for or spend on something.
• Logistics cost (n): A related term often overlapping with distribution cost, focusing on the expenses of transportation and supply chain management.

Synonyms

• Freight cost: Expense specifically for transporting goods.
• Shipping expense: Money spent on the delivery of products.
• Delivery charge: A cost passed on to the customer for sending goods.

Related Phrases

• To bear the distribution cost: To be responsible for paying these expenses.

  • The supplier agreed to bear the distribution cost for bulk orders.

• To factor in distribution costs: To include these expenses in a calculation or plan.

  • When pricing the new product, we must factor in all distribution costs.

Related Terms

• Overhead: General business expenses not directly tied to a specific product unit, which can include some distribution costs.
• Supply chain expense: A broader term encompassing costs from raw material procurement to final delivery, including distribution.

Noun

1. any cost incurred by a producer or wholesaler or retailer or distributor (as for advertising and shipping etc)