TRANSPORTATION EXPENSE

Transportation expenses are a subset of travel expenses that refer specifically to the cost of business
transportation by car, plane, train, etc. Expenses such as fuel, parking fees, lodging, meals, and
telephone charges incurred by employees can be claimed as transportation expenses.

These costs are part of operating expenses because they incur due to the main business activities. These
expenses include telephone expenses, transportation expenses, utility expense. These are included as
operating expenses in the Company's income sheet.

Transportation costs are also examples of direct expenses

Local transportation expenses are generally those incurred for the business use of a car, and for the cost
of travel by rail, bus, taxi, etc.