Transportation costs can be measured only in total dollars and never as a percentage of cost of goods sold or sales revenue.

Question

Quizplus · Accepted Answer

Transportation costs can be measured as a percentage of cost of goods sold or sales revenue as well as in total dollars. This is known as the transportation cost ratio, which helps to analyze the impact of transportation costs on a company's profitability.

Transportation Costs Can Be Measured Only in Total Dollars and Never