A mechanism used to determine the expenses associated with operating a commercial vehicle for each mile traveled. It provides a quantified value representing the operational efficiency and profitability of trucking operations. For instance, if a truck travels 100 miles and incurs $200 in expenses, the resulting value is $2.00.
Understanding this value is essential for effective fleet management, pricing strategies, and overall financial planning within the transportation industry. It allows trucking companies to accurately assess profitability, identify areas for cost reduction, and ensure competitive rates. Historically, estimations were based on manual calculations; however, contemporary tools offer automated solutions that enhance precision and streamline the assessment process.