CPL Logistics Cost Management & Financial Analysis 2

Question 1

Which technique involves analyzing logistics costs by breaking them into price, efficiency, and usage variances compared to a standard or budget?

Accepted Answer

Variance analysis

Answer

Break-even analysis

Answer

Regression analysis

Answer

Sensitivity analysis

Question 2

The economic order quantity (EOQ) model minimizes which combination of inventory-related costs?

Accepted Answer

Ordering costs and holding costs

Answer

Holding costs and stockout costs

Answer

Transportation costs and ordering costs

Answer

Purchase price and storage costs

Question 3

Which logistics financial analysis tool plots cumulative cost against cumulative output to identify fixed and variable cost components?

Accepted Answer

Cost-volume-profit (CVP) analysis

Answer

Break-even chart

Answer

Pareto analysis

Answer

ABC inventory chart

Question 4

A logistics operation has fixed costs of $200,000 and a variable cost of $5 per unit shipped. If the revenue per unit is $15, what is the break-even volume?

Accepted Answer

20,000 units

Answer

10,000 units

Answer

40,000 units

Answer

13,333 units

Question 5

In logistics budgeting, a 'flexible budget' differs from a 'static budget' in that it:

Accepted Answer

Adjusts cost projections based on actual activity levels

Answer

Never requires revision during the year

Answer

Only covers capital expenditures

Answer

Is prepared only for fixed overhead items

Question 6

Which freight rate structure charges a fixed cost per shipment plus a variable rate per mile or per hundredweight?

Accepted Answer

Class rate

Answer

Commodity rate

Answer

Exception rate

Answer

LTL zone rate

Question 7

When evaluating a capital investment in new logistics technology, which discounted cash flow measure expresses profitability as a percentage return?

Accepted Answer

Internal rate of return (IRR)

Answer

Net present value (NPV)

Answer

Payback period

Answer

Accounting rate of return (ARR)