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Exam (elaborations)

TRL3706 ASSIGNMENT 1,S2 2023

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The transport sector, particularly road transport, plays a crucial role in the South African economy by facilitating the efficient movement of goods and people across the country. The proficient management of transport enterprises is imperative for their fiscal sustainability and enduring viability. The understanding and application of cost concepts in the process of decision-making play a crucial role in attaining maximum efficiency. This essay explores the fundamental cost concepts that pertain to road transport, including fixed, variable, average, marginal, incremental, avoidable, common, and joint costs. Each of these cost concepts is accompanied by a thorough explanation and pertinent examples from the context of road transport in South Africa.

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Uploaded on
July 29, 2023
Number of pages
8
Written in
2022/2023
Type
Exam (elaborations)
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, Table of Contents
1. Introduction...............................................................................................................3

1. The basic cost concepts of the road transport.........................................................3

a. Fixed Costs...........................................................................................................3

b. Variable Costs.......................................................................................................3

c. Average Costs.......................................................................................................4

d. Marginal Costs......................................................................................................4

e. Incremental Costs.................................................................................................5

f. Avoidable Costs.....................................................................................................5

g. Common Costs.....................................................................................................5

h. Joint Costs.............................................................................................................6

2. Conclusion................................................................................................................6

List of References.........................................................................................................8

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