how can accounting be used to mitigate risks associated with

how can accounting be used to mitigate risks associated with transportation costs

Solution

Accounting costs concept. This includes all of the cash outlays of the company. This is the easiest concept to understand. The accounting costs include all of the expenses incurred by the company. This includes fuel, driver wages, wear and tear on the equipment and other costs associated with delivering the freight. When hauling truck load freight this is very straight forward but in the case of LTL freight or package delivery this becomes more difficult.
Mitigating these costs can be difficult, but it can pay big dividends for the company. If a company is able to quantify all of its operations they would be able to evaluate which service is the most costly and focus on reducing this costs.