The History And Economics of Transport

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If, however, the zealous manager insisted on getting out cost figures the result obtained would be to a large extent an unrepresen- tative arithmetical average having no real vital Un |£res t . 0|, y a PP lication t0 the actually existing railway. Costs necessarily differ with various sections of the line. Gradients vary, and therefore it costs more in actual haulage ex- penses on some sections of the line than on others. For the same reason cost of construction varies in the different sections
... and so the allowance for interest on capital must correspondingly vary, and if exact costing is to be obtained then a general average for the whole system would be quite hopelessly inaccurate in such cases. Another factor which would prove inconvenient in the settlement of such a problem is the variation in the volume of traffic. On main lines where the volume of traffic is largest the cost of service would be spread over a large number of units and the average would be small. On unimportant branch lines with a smaller volume of traffic the average per unit would possibly be larger ; at any rate, it is doubtful if it would at all correspond with the cost per unit on the main lines.

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