What Are Transportation Expenses?

Transportation costs are expenses incurred for transporting goods. According to the reasonable flow of goods, choosing the appropriate transportation method or means of transportation, and organizing the transportation costs of goods transportation can increase the value of the goods, which is a productive circulation cost. Due to improper work of the transportation organization, transportation costs incurred due to unreasonable transportation such as roundabout transportation should be pure circulation costs. Commercial enterprises should choose the most economical means of transportation and transportation routes to organize the transportation of commodities in accordance with the characteristics and reasonable flow of commodities in order to save transportation costs and improve economic efficiency. ^[1]