CLP Logistics Cost Management & Financial Analysis 3

Question 1

Activity-Based Costing (ABC) in logistics assigns overhead costs based on:

Accepted Answer

The specific activities that consume resources

Answer

ABC traces costs to the specific activities that drive them, providing more accurate cost allocation than broad averaging methods.

Question 2

Freight consolidation reduces logistics costs primarily by:

Accepted Answer

Combining multiple smaller shipments into fewer, larger loads

Answer

Consolidation combines smaller shipments to achieve fuller truckloads or container loads, reducing per-unit transportation costs through economies of scale.

Question 3

In freight transportation, a fuel surcharge is typically indexed to:

Accepted Answer

Published fuel price indices such as the DOE weekly diesel average

Answer

Fuel surcharges are variable fees indexed to published fuel price indices (e.g., DOE weekly diesel average) to offset carrier fuel cost volatility.

Question 4

Logistics network optimization primarily aims to:

Accepted Answer

Determine optimal facility locations to minimize total distribution costs while meeting service goals

Answer

Network optimization models determine the best number, size, and location of facilities to minimize total logistics costs while achieving service level targets.

Question 5

Modal shift as a logistics cost management strategy involves:

Accepted Answer

Switching from one transportation mode to another for cost or service advantages

Answer

Modal shift changes the transportation mode used (e.g., air to ocean freight, truck to rail) to optimize the cost-service tradeoff.

(CLP) Certified Logistics Professional Practice Test

(CLP) Certified Logistics Professional Practice Test

CLP Logistics Cost Management & Financial Analysis 3