Unit cost calculation for transport movements
This transport company had for many years achieved only break-even results. There were differing views within the management as to which activities were profitable. Both the company and its bank wanted clarity on this point. We calculated the unit costs using "activity based costing" and revealed the profitability per customer. It was then clear which segments were profitable, and the loss-making customers could be let go, freeing up capacity for profitable customers.
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