BASIC THEORY OF CALCULATING COSTS: APPLICATIONS TO TRUCKING

Knowledge and control of costs is fundamental to any business enterprise. Costs knowledge has implications for pricing and for efficiency gains, which affect profitability. Pricing of the output of the firm service has to be based on knowledge of the costs of providing that service as well as an understanding of the market demanding the service. The basic conceptual theory of costs will be presented in this report, emphasizing definitions of costs as they are applied to business situations. These costs' concepts will be evaluated relative to differing firm characteristics that have specific impacts on those costs. Such items as measures of utilization and market situations will receive specific attention, then an approach to economic engineering, or internal firm determination of costs, will be provided. Finally, the report will conclude with a brief section on how to determine and evaluate productivity of the resources used in producing service as a firm.

• Summary URL:
  http://www.ugpti.org/resources/reports/details.php?id=121
• Corporate Authors:

  Upper Great Plains Transportation Institute

  North Dakota State University
  1320 Albrecht Boulevard
  Fargo, ND  United States  581052

  Washington State University, Pullman

  Department of Agricultural Economics
  Pullman, WA  United States  99164-6210
• Authors:
  • Casavant, K L
• Publication Date: 1993-9

Language

• English

Media Info

• Features: Figures;
• Pagination: 22 p.

Subject/Index Terms

• TRT Terms: Cost control; Demand; Economic efficiency; Economics; Pricing; Productivity; Profitability; Supply; Theory; Trucking
• Uncontrolled Terms: Efficiency; Supply and demand
• Subject Areas: Economics; Freight Transportation; Highways; Motor Carriers; Society; I10: Economics and Administration;

Filing Info

• Accession Number: 00737580
• Record Type: Publication
• Report/Paper Numbers: 118
• Files: TRIS
• Created Date: Jun 19 1997 12:00AM