Factors Influencing Transportation Costs

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Questions and Answers

What are transportation costs usually quoted in terms of?

  • Dollars per unit of weight (correct)
  • Cubic capacity
  • Density
  • Volume

Why do higher-density products allow for lower transport costs per unit of weight?

  • They are easier to stow
  • They spread fixed transport costs across more weight (correct)
  • They have higher liability
  • They require less handling equipment

Which factor influences stowability the most?

  • Excessive weight
  • Product density
  • Special handling equipment
  • Odd package shapes (correct)

How can shippers reduce their liability in terms of transportation cost?

<p>Improving packaging (C)</p> Signup and view all the answers

What influences handling cost along with special handling equipment?

<p>Grouping of products for transport and storage (D)</p> Signup and view all the answers

Why would odd-shaped items be more challenging to stow than rectangular ones?

<p>Their shape may not fit well in transportation equipment (D)</p> Signup and view all the answers

What is the primary factor that influences transportation costs?

<p>Distance (D)</p> Signup and view all the answers

Which of the following statements about volume is true?

<p>Transportation costs per unit decrease as load volume increases up to the vehicle's capacity. (D)</p> Signup and view all the answers

What does the term 'density' refer to in the context of transportation costs?

<p>A combination of the weight and volume of the product being transported. (C)</p> Signup and view all the answers

Which of the following is NOT mentioned as a factor influencing transportation costs?

<p>Packaging (B)</p> Signup and view all the answers

What is the management implication regarding load volume?

<p>Small loads should be consolidated into larger loads to maximize scale economies. (B)</p> Signup and view all the answers

Which of the following statements is true about the factors influencing transportation costs?

<p>The factors are listed in order of increasing importance. (B)</p> Signup and view all the answers

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