Final answer:
Private transportation is considered a cost center in commercial business as it involves expenses such as fuel, maintenance, and insurance.
Step-by-step explanation:
To further the commercial business, private transportation is not considered a part of the supply chain, a profit center, or an operational function. However, it is considered a cost center because it involves expenses such as fuel, maintenance, insurance, and other operational costs.
For example, an independent trucker delivering goods from point A to point B would incur costs for fuel, vehicle maintenance, and other expenses. These costs contribute to the overall expenses of the business, making private transportation a cost center.
By understanding which category private transportation falls into, businesses can better manage and allocate their resources to optimize efficiency and profitability.