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In summary there are two main reasons why a special from of cost reporting is beneficial to a manager running a transport operation. These are: 1 the need to know the details of the vehicle and fleet performance in order to control the operations; and 2 the need to know in sufficient time to make any necessary changes.
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The two main uses of these types of costing systems are identified as the monitoring and control of operations and the formulation of budgets. The major costs are categorized as standing costs running costs and overhead costs nd examples show how these costs are calculated.
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