Common Carriers May Limit the Amount of Their Liability When

question 11

Essay

Common carriers may limit the amount of their liability when the shipper does not declare the value of goods.Usually these terms must be approved by the Canadian Transportation Agency,which has jurisdiction over the common carrier.Discuss the benefit to both the shipper and the common carrier with this arrangement.

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Definitions:

Total Variable

Expenses that change in proportion to the activity of a business, such as costs of goods sold, which vary with the level of production or sales volume.

Average Variable Cost

The variable costs of production (costs that change with output level) divided by the quantity of output, indicating the average variable cost per unit.

Producing Purses

Producing purses involves the manufacturing and assembling of various materials to create handbags and similar accessories.

Average Fixed Cost

The sum of all production fixed costs divided by the number of units produced.