Railway Costing
Railway costing is the calculation of the variable and fixed cost components of rail movements. Due to the vast array of data that can be used in the calculations, railway costing is typically done using a mathematical model like OSCAR For example, OSCAR would be able to calculate the cost of shipping 80 tonnes of coal from Point A to Point B, or the cost of moving 3000 passengers from Point C to Point D.
The OSCAR model will estimate the variable costs of a railway due to the movement of traffic, the provision of a service, or a variety of other factors. Once costs are determined, appropriate tariffs can be set to generate the revenue necessary to offset the chosen cost level (plus profit). OSCAR can also be used for line analysis and investment analysis.
Read more about this topic: OSCAR Railway Costing
Famous quotes containing the words railway and/or costing:
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—Orson Welles (1915–1985)