ss50th wrote:Shipping costs: In some cases the actual charge of the shipping company is not the only factor in the total cost. Some companies have individual cost centers for each department and the total cost in shipping can include the packaging, cost of the personnel, actual freight charge, etc. One company had codes to enter when using the copy machines so the expense could be assigned to an individual department.
I believe it is typical in larger operations to have cost centers for each of their major work areas. By doing this, they can accumulate the "real cost" of doing business. The sum of all real cost then becomes the manufacturing cost for that particular product.
In other operations, the various costs are really just WAGs.
Shopsmith charges for shipping and they charge for handling. Shipping costs are probably real costs (based on past experience and today's shipping rates).
Handling costs are a different story and I am not quite to gracious there. I have an outstanding order right now that is going to cost $12.49 for shipping and handling.
Two years ago I bought the same two items PLUS an additional 6 items that cost an additional $55. That order only cost me $10.99 to ship. Less expensive and fewer items cost $1.50 more for shipping and handling.
Go Figure.