Transportation as used in business is a term reflecting costs tied to tractors, trailers, trucks, autos, and other forms of transportation items (aircraft, marine, and rail cars).  Depending on the nature of the particular industry, transportation costs may be assigned to cost of sales or in the overhead section of the income statement.

Cost per Mile – The Basic Formula

Cost Per Mile

In any industry, especially transportation, it is essential for the owner of a business to understand how much it costs per mile to operate his vehicle, trucks or fleet. The formula looks simple and in reality it is; but you must understand the underlying elements to truly appreciate and comprehend the calculation.

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