Transportation Costs
Transportation costs refer to the expenses incurred in moving goods or people from one location to another. These costs can include fuel, vehicle maintenance, labor, and tolls. They are essential for businesses to consider when planning logistics and pricing strategies, as they directly impact overall profitability.
Factors influencing transportation costs include distance, mode of transport (such as trucks, trains, or airplanes), and the type of cargo being transported. Additionally, fluctuations in fuel prices and regulatory fees can also affect these costs. Understanding transportation costs helps businesses optimize their supply chain and improve efficiency.