The vehicle-related cost is incurred whether the vehicle is operating or not and is considered fixed for short-term operational decisions by the carrier.

Question

Quizplus · Accepted Answer

Vehicle-related cost, such as depreciation, insurance, and registration, is a fixed cost that does not change regardless of the vehicle's utilization. As a result, it is considered a fixed cost for short-term operational decisions by the carrier.

The Vehicle-Related Cost Is Incurred Whether the Vehicle Is Operating