Costing and Pricing of Transport

Element: PD03-3 Operation of Transport

The financial management of each and every transport operation is crucial to its future sustainability.

For a transport organisation of your choice:

• Describe the cost elements which exist in a transport operation and how these can be successfully controlled whilst maintaining or improving customer satisfaction.
• Evaluate the various methods used to build costs into a pricing policy.
• Compare and contrast the different pricing arrangements of transport in an operation that has to meet a regular peak in demand for its services and how these can be used to control demand.

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