C 21:35 Freight transport Done QUESTION 1 (10 MARKS) Fleet costing is central to the efficient management of any road freight operation. Provide a brief discussion explaining the importance of costing in freight transport organisations (5 marks) AND give specific reasons why costing is necessary (5 marks). QUESTION 2 (10 MARKS) There are different types of contracts in the road transport industry that govern the relationship between stakeholders. Describe AND highlight the differences between carrier contracts and spot market contracts. QUESTION 3 (10 MARKS) There are several different types of contracting models that stakeholders can use in the outsourcing of freight transport operations. Discuss the characteristics AND describe the advantages and disadvantages of fixed-price contracts. QUESTION 4 (15 MARKS) A key vehicle standing cost item is depreciation. Provide a thorough explanation of depreciation (5 marks) and use the following information of a 6 x 4 Rigid vehicle to calculate depreciation book value using straight-line and reducing balance methods (10 marks). Vehicle information Vehicle type Purchase price of the vehicle Number of tyres 6x4 Rigid R1,620,000 10 Cost per tyre R13,400 Residual value (%) 25% Expected economic life 5 Written down per year (%) 30% QUESTION 5 You have been appointed as a management trainee at Rainbow Carriers and tasked to evaluate the performance of one of their contracts. Use the information in the table below to calculate the arding to the four-pillar method ie variable cost per kilometre fixed cost (15 MARKS) E