Cargo Ships Are Reducing Transit Time and Are Larger and Thus

question 23

Multiple Choice

Cargo ships are reducing transit time and are larger and thus able to carry more containers. What is a disadvantage of this for U.S. companies' imports?

• A) They are taking business away from other forms of transit.
• B) Some ships are too large to fit into U.S. ports.
• C) The cost is becoming prohibitive.
• D) Containers cannot be shipped by rail in Europe.
• E) They have impeded investment in supersonic passenger jets.

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Definitions:

Underutilising

Refers to the scenario where resources are not being used to their full potential or capacity, often leading to inefficiency or wastage.

Variable Overhead Efficiency Variance

A metric used to measure the difference between the actual variable overhead cost and the standard cost of the actual production volume.

Cost Driver

A factor that causes a change in the cost of an activity.

Machine Hours

A measure of the amount of time a machine is operated, used in calculating manufacturing costs and efficiency.