Application of cost models in transportation companies

The function of transportation services is covering of distances and transferring goods, passengers and messages from one place to another. There is a possibility to use a simple and complex cost model or their modification to reflect transportation costs and their impact. The resulting value obtained from the usage of a complex cost model is influenced by a material expensiveness, wage expensiveness through the changes in labour productivity and average wages, demand factor of transportation outputs on tangible investment goods and other expensiveness. The configured cost models in road freight company have better expressing ability, if they are designed in accordance with the structure of a vehicle fleet, e.g. according to vehicle weight category. Based on outcomes analysis of cost models the company management accepts and enforces the measures to increase the effectiveness of transportation process by reason of retention and extension of position on the transport market.