Discuss the cost structure of the water carrier mode and be sure to include fixed versus variable costs
About 15 percent is of the water carrier's cost is fixed while nearly 85 percent is variable. Fixed costs include depreciation and amortization while variable costs are fuel, labor and user charges. This cost structure is similar to motor carriers--low fixed cost, high variable costs.
Like the trucks, and unlike rail, water carriers have relatively low fixed cost because the do not have to own or have to provide for their waterways. Waterways are provided by nature, and typically the government maintains, improves and controls them. That is similar to trucks and the highway, and the opposite of Rail and the rail track system which is owned and maintained by the rail company.
The water carriers do pay user charges-lock fees, dock fees, fuel taxes-for the use of government-provided facilities. These user charges are variable, and directly related to the volume of business.
The other variable cost include line-operating costs (cost of operating ships, barges, and facilities), operating rents (cost of renting facilities and equipment), and maintenance.
You might also like to view...
With the rise of the rest of the world, competition for resources and markets are becoming more local
Indicate whether the statement is true or false
Which of the following statements is not true about how power is related to ethical choices in negotiation?
A. Negotiators with power are more likely to work through moral dilemmas using end-result ethics. B. Negotiators with unequal power may encounter frustration with each other when it comes to ethics. C. A lack of power disposes negotiators to focus more on consequences. D. Having power, or not having it, may affect the style of reasoning a person uses to judge the ethics of a situation.
The ability to provide prompt service and to respond quickly to customer requests is called reliability.
Answer the following statement true (T) or false (F)
Describe form messages used for routine responses