How the transportation costs of the materials are measured?

Asked on 05.12.2018 in All Questions.
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(Top Tutor) Studyfaq Tutor
‘Factories which utilize and transform materials from a variety of sources to create products for one or more markets incur transportation costs.’ Transportation costs are made up of procurement costs (‘the cost of transporting materials from sources of supply to the factory’) and distribution costs (‘the cost of transporting the manufactured product to the market’). They can depend heavily on the distance the good is traveling and the physical features of the good for example, weight, volume and lifetime. Other factors can include the value of the goods – higher value goods are more expensive to transport due to there typically being lower demand for them meaningless is transported. Lower quality goods can benefit from economies of scale as general levels of production...
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