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"Whatever we think we can get away with charging."

Freight costs is simple: it's whatever the shipping company charges to deliver the package from point A to point B.

Handling is a lot more complicated. At one place I worked, "order fulfillment" was its own division of the company, and it charged other divisions a flat fee per order plus a line item fee for each different item on that order. This was done to take advantage of economies of scale but still have each division be responsible for its own shipping costs instead of "sponging" off the rest of the company.

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Q: Define freight costs plus handling
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