Certified Supply Chain Professional (CSCP) Practice Exam

Which of the following is a component of vehicle operating costs?

1. Depreciation of warehouse assets

2. Repairs and fuel

3. Customer service costs

4. Supply chain consulting fees

The correct answer is: Repairs and fuel

Repairs and fuel are essential components of vehicle operating costs. These costs directly relate to the day-to-day operation of a vehicle within a supply chain or logistics context. Repairs ensure that the vehicle remains functional and safe for transportation, while fuel is necessary for powering the vehicle for deliveries and other transportation needs. Together, these expenses represent a significant part of the total cost incurred in operating vehicles used in supply chain activities. The other options, while relevant to overall business expenses, do not pertain specifically to the costs associated with operating vehicles. For example, depreciation of warehouse assets relates to Fixed Assets accounting, customer service costs focus on maintaining customer satisfaction and relationships, and supply chain consulting fees are related to hiring experts to improve or strategize supply chain management. None of these represent direct operational costs for vehicles.