CLTD Logistics Costing and Finance 2

Question 1

Which financial metric measures how efficiently a company uses its assets to generate logistics-related revenue or cost savings?

Accepted Answer

Return on assets (ROA)

Answer

Gross margin percentage

Answer

Days sales outstanding (DSO)

Answer

Current ratio

Question 2

What is the difference between a 'Class Rate' and a 'Contract Rate' in freight pricing?

Accepted Answer

Class rates are published tariff-based rates tied to commodity classification; contract rates are individually negotiated between shipper and carrier

Answer

Class rates are negotiated individually; contract rates are published in tariffs

Answer

Class rates apply only to air freight; contract rates apply to ocean freight

Answer

There is no practical difference between the two

Question 3

A company's logistics cost as a percentage of sales is 8%. If annual sales are $50 million, what are the total logistics costs?

Accepted Answer

$4,000,000

Answer

$400,000

Answer

$40,000,000

Answer

$8,000,000

Question 4

Which concept describes the trade-off where reducing inventory carrying costs may increase transportation costs due to more frequent smaller shipments?

Accepted Answer

Cost trade-off analysis

Answer

Economies of scale

Answer

Pareto analysis

Answer

Net present value analysis

Question 5

When evaluating a make-or-buy decision for logistics services (e.g., outsourcing warehousing), which cost type is most critical to identify?

Accepted Answer

Opportunity costs and total incremental costs

Answer

Sunk costs

Answer

Historical average costs

Answer

Standard overhead rates

Question 6

A shipper ships 10,000 lbs at a rate of $0.05 per lb. The carrier offers a 500 lbs minimum charge at $0.08 per lb. What does the shipper actually pay?

Accepted Answer

$500

Answer

$400

Answer

$800

Answer

$40

Question 7

Which of the following best defines 'accessorial charges' in transportation billing?

Accepted Answer

Extra fees for services beyond standard pickup and delivery, such as liftgate, residential delivery, or detention

Answer

The base line-haul rate for moving freight from origin to destination

Answer

Discounts applied for high-volume shippers

Answer

Fuel taxes collected by the government