Cost analysis refers to the detailed outline of the potential risks and gains of a projected venture or project. It is the comparison of costs for a given period of time with the purpose of disclosing and reporting on conditions that have to be improved (Heljedal, 2013). For example, in a comparison between modes of transportation, there are different modes of transport these are road, water, rail, air, etc. Different people prefer different modes of transportation. Some aspects may determine which mode is selected depending on major determinants such as availability and cost. People will tend to use a mode of transportation that is easily available and one with a competitive cost.
The provider of choice has shifted from rail to motor modes because of the availability and accessibility. Motor modes are easily available at our disposal and always flexible compared to rail which has a fixed schedule. You can always get another motor vehicle when you miss one without having to wait for several hours like the rail. Considering accessibility vehicles can access marginal areas as compared to trains which have specific routes (Winker & Lurie, 2009). This illustrates that even if you use rail at some point you will have to use the road as your mode of transportation. Implementation of improved technology motor modes have been designed to carry tons of freight, this has seen the shift from rail to the road because now vehicles are efficient. Additionally, the opening up of new road channels has reduced the distance to be covered and now freight can access the destined location in a short period of time as compared to rail which uses outdated technology.
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In conclusion, every region does not have railway lines but almost all parts have roads if not tarmacked there is a seasonal road. This has seen tremendous growth in road transportation even if there is an increase in traffic accidents because of one factor and that is the availability and the flexibility of road transportation (Winker & Lurie, 2009).
References
Heljedal, M. (2013). Factors Influencing the Choice between Road and Multimodal Transportation. Retrieved on April 17, 2108 from https://www.diva-portal.org/FULLTEXT02
Winker, M. A., & Lurie, S. J. (2009). Cost-effectiveness Analysis, Cost-Benefit Analysis. AMA Manual of Style . doi:10.1093/jama/9780195176339.021.281
