Estimating Practice Exam

Which statement is true regarding the cost of transporting major excavation equipment?

1. It is more expensive on a bulk rate basis

2. It is cheaper to transport individually

3. It should only be calculated as part of fixed costs

4. It is typically included in project overhead

The correct answer is: It is cheaper to transport individually

Transporting major excavation equipment individually can indeed often be more cost-effective due to several factors. When equipment is transported together as a bulk shipment, there can be significant logistical challenges—including requiring larger vehicles, needing specialized permits, and potentially encountering weight restrictions that could lead to delays or additional costs. Each piece of equipment may have specific transportation needs that make transporting them separately more efficient and ultimately less costly. Additionally, transporting equipment individually allows for more precise planning regarding delivery times and routes, which can contribute to reducing overall transportation costs by avoiding unnecessary complications and optimizing routes based on the specific characteristics of each piece of equipment. In terms of project management, while transportation costs can relate to fixed or overhead costs in certain contexts, it’s important to recognize that treating these costs effectively and strategically can help organizations manage their project budgets more efficiently. Justifying transportation as a singular individual cost can facilitate better tracking and accountability for project expenses.