Certified in Logistics, Transportation and Distribution (CLTD) Practice Test 2025 – Your All-in-One Resource to Complete Exam Success!

In the context of transportation, overhead (OH) costs refer to expenses that are not directly tied to the operational processes of moving goods but are necessary for supporting those operations. Fleet overhead, business overhead, and administrative overhead are all recognized types of overhead costs in transportation.

Fleet overhead encompasses costs related to maintaining and operating the vehicles themselves, such as repairs, fuel, and insurance. This expense is essential for ensuring that the fleet can effectively support the distribution and logistics activities of a business.

Business overhead includes a wide range of expenses that support the overall functioning of the transportation organization, including utilities, facilities maintenance, and salaries for staff not directly involved in transportation activities.

Administrative overhead covers costs associated with management and support functions, such as salaries for back-office staff, office supplies, and technology support systems. This cost ensures that there is sufficient organizational structure to manage transportation operations effectively.

Market overhead, on the other hand, is not typically categorized as a type of overhead in the context of transportation. It might refer to costs associated with market research, promotional activities, or other initiatives aimed at understanding and influencing market behavior, which do not directly contribute to the transportation process itself. Thus, it does not fit within the traditional definitions of overhead costs associated with transportation activities.