COST CALCULATION IN ROAD FREIGHT TRANSPORT

Abstract

Cost management is important for every transport company. Increasing competition in road freight transport forces companies to cost-effectiveness, so they need to know their costs of carrying out the transport service. The article aims to illustrate the structure of costs in road freight transport and analyze the changes in fixed and variable costs for different annual kilometers traveled. Traditional accounting was used to calculate the total and average costs. In the research, we determined the changes in total and average costs for different annual kilometers, which are expected and comparable with other countries. From the transport company's point of view, the structure of costs is also important, and the finding that the highest of the costs are fuel, labor and toll costs. The research enables transport companies to understand the cost structure and provide opportunities for increasing competitiveness based on cost control. Further research is aimed at determining the cost structure of different types of transport vehicles and the changes of fixed and variable costs in the case of different mileage with using ABC costing methods.