1.

(ii) What are the other inputs in the process of manufacturing that involvetransportation cost?

Answer»

Theexpensesinvolved in moving products or assets to a different place, which are often passed on to consumers. For example, a business would generally incur atransportation costif it needs to bring its products to retailers in order to have them offered for sale to consumers.

There are a few aspects of manufacturing that require transportation costs to be paid. One such aspect is receiving materials to manufacture a product with. Another reason transportation costs would be involved is when the products are being sold.

1)When fuel prices are high, shippers expect to experience increased costs. However, when fuel prices drop, shippers tend to find that their savings are more modest than expected. That’s primarily due to General Rate Increases (GRI) of about 5% industry-wide over the past few years.



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