Exam 8: Transportation

pricing is a technique to encourage customers to perform specific activities that are deemed desirable by the seller .

the release of railroad equipment is detained by a shipper a detention charge may apply

fact that most traditional carriers require a minimum charge helped create the market for package services.

Jones Company learned that several other shippers located in its hometown had customers located in the same markets it serves.With this information Jones Could find it advantage to investigate the potential of:

mode of transportation hauling the most tonnage is:

rating reflects the cost of shipment from one location to another

transportation mode having the best overall operating characteristics is truck

Assume your firm uses Uniform Delivered Pricing.This will result in:

Water transport has the highest fixed cost

a general rule the greater the density the lower the freight rate.

Under transportation regulation the government established rates

Freight classification is a method to simplify the locations being serviced by a carrier

Generally the least costly method of moving product that is not gaseous, liquid, or slurry is:

Motor carriers are the most used mode of transportation

your company does not want responsibility for freight damage they should negotiate FOB Destination rates

significant difference between a class rate and a commodity rate is the type of freight being shipped.

Computer software designed to assist in carrier management is typically called a Transportation Management System (TMS)

transportation economic principle that deals with economy of distance is:

Pipeline has the highest dependability and frequency among alternative modes

joint rate is applicable when two or more carriers participate in a specific transportation movement