What is a component of transportation cost? A. Handling cost. B. Lot quality cost. C. Insurance...

What is a component of transportation cost?

A. Handling cost.

B. Lot quality cost.

C. Insurance cost.

D. Production cost.

Expert Solution

Here is the component of transportation cost - Option A - Handling Cost

The cost involves certain elements and depends upon the number of times shipment will be loaded, handled & unloaded.
The handling aspect of cost also involves any kind of damages and even if the companies have insurance the cost of premiums have to be borne.
To prevent pilferage the cost is included in handling cost as a transportation component.
Handling costs also include the cost associated to prevent deterioration caused by mechanical shocks and weather conditions.

keosha answered 2 years ago

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