CPL Logistics Cost Management & Financial Analysis 1

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

Activity-based costing (ABC) assigns costs by tracing them to the specific activities (e.g., receiving, picking, shipping) that consume resources, giving a more accurate picture of true logistics costs.

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

TCO encompasses all costs incurred over the life of an asset or relationship, including acquisition, operating, maintenance, and disposal costs, not just the purchase price.

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

8% of $50 million = 0.08 × $50,000,000 = $4,000,000 in total logistics costs.

Question 4

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

Accepted Answer

Return on logistics assets (ROLA)

Answer

Return on logistics assets (ROLA) measures how efficiently logistics assets (warehouses, vehicles, equipment) generate profit, guiding capital investment decisions.

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

Pre-auditing freight invoices checks that billed amounts match contracted rates and shipment details, preventing overpayments and billing errors before funds are disbursed.

(CPL) Certified Professional Logistician Practice Test

(CPL) Certified Professional Logistician Practice Test

CPL Logistics Cost Management & Financial Analysis 1