Discussion
Which cost is incurred in the process of moving and which are principally made up of fuel costs and wages ?
Answer: C
The cost of the movement itself, made up mainly of fuel and wages, is the line-haul cost.
Transport costs have two parts. Terminal costs (loading, unloading, documentation, terminal facilities) are fixed and paid whatever the distance. Line-haul costs are incurred in actually moving the goods, chiefly fuel and the crew's wages, so they rise with distance travelled.
Overhead costs are the fixed costs of running the business. Transfer cost is the total cost of moving goods, terminal and line-haul together. Comparative cost belongs to trade theory, not to transport costing.
No comment is present. Be the first to comment.
Loading…
Post your comment
Please log in or register to post a comment.
Examination Categories
- SSC Exams
- Banking Exams
- Teaching Exams
- Civil Services Exams
- Railways Exams
- Engineering Recruitment Exams
- Defence Exams
- State Government Exams
- Police Exams
- Insurance Exams
- Nursing Exams
- Other Government Exams
- NRA CET
- PG Entrance Exams
- Campus Placement
- MBA Entrance Exams
- CUET and UG Entrance
- Judiciary Exams
- Regulatory Body Exams
- Software Development