Nowadays,
cost of transportation is one of the important aspects that always being issued
in logistics world services. All of these, because of, fuels plays big role as
it will give big impact towards the transportation itself in deciding the price
for the service provided.
As
each transport provider must pay the price in order to produce transportation
services, thus the transport cost played as a monetary measure for the
services. Transportation costs are classified into a number of categories which
is variable, fixed, joint and common cost.
Variable
cost is a cost changing depends on situation. It not just situation, but also
the distance could be as one of the facets for this variable costs. In the view
of distance, it can be measure by how far the shipment will be delivering to
the destination. The longer the distance, will result to the increasing cost of
transportation itself.
While
for fixed cost, firms still have to pay for this type of cost even when they’re
not running the operation during the holiday day. Which means, for instance
firm still need to pay for the leasing cost of the vehicles that used for the
distribution product.
Joint
cost is a kind of an expensive cost. It usually cost incurred by those people
that are request for special kind of services. This service is provided at
anytime and the destination based on customers want. The total cost is a
combination from the customer’s places to the destination, plus the destination
till to where the transport provider comes.
Last
but not least, common cost is a must have that transport provider incurs once
they’re start to deliver and distribute firm’s products to many places. This
costs actually depends on the workers itself on how they managed the using
cost, for instance cost of food and drinking.
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