How are shipping costs calculated?

Shipping costs are part of the distribution or sales costs in a company’s cost accounting.
In a functional sense, shipping includes all activities required for the physical distribution of market-ready products. These activities include:

• Picking items to form shipment units based on orders or customers
• Selecting appropriate shipping packaging and performing the packing process
• Scheduling shipments in accordance with promised delivery times
• Defining shipping terms in coordination with sales or customers
• Preparing shipping documents based on delivery conditions
• Handing over the packaged goods to the chosen shipping service provider