CPL Logistics Cost Management & Financial Analysis

Question 1

Which costing method assigns overhead costs to products or services based on the activities that drive those costs in a logistics operation?

Accepted Answer

Activity-based costing (ABC)

Answer

Standard costing

Answer

Marginal costing

Answer

Absorption costing

Question 2

Total Cost of Ownership (TCO) in logistics procurement includes which of the following beyond the purchase price?

Accepted Answer

Acquisition, operating, maintenance, and disposal costs

Answer

Only freight charges

Answer

Only insurance premiums

Answer

Only invoice cost and duties

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 million

Answer

$40 million

Answer

$8 million

Answer

$6.25 million

Question 4

Which financial metric measures the profit generated per dollar of logistics assets employed?

Accepted Answer

Return on logistics assets (ROLA)

Answer

Gross margin ratio

Answer

Current ratio

Answer

Inventory turnover

Question 5

In freight auditing, what is the primary purpose of conducting a pre-audit before paying carrier invoices?

Accepted Answer

To verify charges are accurate and match agreed rates before payment

Answer

To renegotiate long-term contracts

Answer

To evaluate carrier on-time performance

Answer

To assess customer satisfaction scores

Question 6

Which cost behavior pattern remains constant in total regardless of changes in logistics volume within a relevant range?

Accepted Answer

Fixed costs

Answer

Variable costs

Answer

Mixed costs

Answer

Step costs

Question 7

A logistics manager uses a 'make-or-buy' analysis. Which factor most favors outsourcing a distribution function?

Accepted Answer

Lower total cost with third-party providers

Answer

High proprietary technology requirements

Answer

Core competency alignment

Answer

Desire for tighter quality control