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

Variance analysis decomposes actual vs. budgeted logistics costs into specific causes (price paid, quantity used, efficiency achieved), enabling targeted corrective action.

Question 2

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

Accepted Answer

Ordering costs and holding costs

Answer

EOQ finds the order quantity that minimizes the sum of ordering costs (cost per order placed) and holding costs (cost to carry inventory), balancing the trade-off between the two.

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

Cost-volume-profit (CVP) analysis shows how changes in volume affect total costs and profit, revealing the fixed cost base and variable cost rate across output levels.

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

Break-even = Fixed Costs ÷ (Revenue per unit − Variable cost per unit) = $200,000 ÷ ($15 − $5) = $200,000 ÷ $10 = 20,000 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

A flexible budget recalculates expected costs at actual activity levels, making performance comparisons more meaningful than a static budget fixed at one planned volume.

(CPL) Certified Professional Logistician Practice Test

(CPL) Certified Professional Logistician Practice Test

CPL Logistics Cost Management & Financial Analysis 2