CLP Logistics Cost Management & Financial Analysis 2

Question 1

The inventory turnover ratio is calculated as:

Accepted Answer

Cost of Goods Sold divided by Average Inventory

Answer

Inventory turnover = COGS / Average Inventory, measuring how many times inventory is sold and replaced during a period.

Question 2

Cost-to-serve analysis helps logistics managers primarily to:

Accepted Answer

Determine the true profitability of serving specific customers or channels

Answer

Cost-to-serve analysis identifies all costs associated with specific customers or segments to determine true profitability.

Question 3

Landed cost includes all of the following EXCEPT:

Accepted Answer

Retail markup applied by the buyer

Answer

Landed cost covers all expenses to bring goods to the destination (freight, duties, insurance, fees) but excludes the buyer's retail markup.

Question 4

Days Inventory Outstanding (DIO) measures:

Accepted Answer

The average number of days inventory is held before being sold

Answer

DIO measures the average number of days a company holds inventory before it is sold, indicating inventory management efficiency.

Question 5

Return on Logistics Assets (ROLA) best measures:

Accepted Answer

The profitability generated relative to assets deployed in logistics operations

Answer

ROLA measures how effectively logistics assets generate profit, helping evaluate the financial performance of logistics investments.

(CLP) Certified Logistics Professional Practice Test