In Which Case(s) Would You Use Common Carriers Instead of Contract

question 42

Multiple Choice

In which case(s) would you use common carriers instead of contract carriers?

• A) regular delivery by a food chain to its stores
• B) shipment to customers by a mail order house
• C) regular shipment of paper from a mill to its warehouse
• D) a and b above
• E) a and c above.

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Definitions:

Gross Margin

The difference between sales revenue and the cost of goods sold, divided by revenue, expressed as a percentage.

Variable Cost

Expenses that fluctuate in direct proportion to changes in output or activity level, including costs like supplies and commission fees.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of the materials and labor used in production.

Opportunity Cost

The expense incurred by not choosing the second-best option available during decision-making.