Suppose That a Particular Item Is Class 200 According to the National

question 28

Multiple Choice

Suppose that a particular item is Class 200 according to the National Motor Freight Classification. What is the relationship between this item's rate and the rate for an item in Class 100?

• A) the class 200 rate is lower than the class 100 rate
• B) the rate relationship depends on other factors
• C) the rates are identical
• D) the class 200 rate is higher than the class 100 rate
• E) there is insufficient information to answer the question

---

Definitions:

Net Price

The price of a good or service after all discounts, rebates, and other cost reductions have been applied, not including additional charges such as shipping or taxes.

Complement Method

A mathematical technique used to simplify the process of subtraction by utilizing the "complement" of a number.

Cash Discount

A reduction in an invoice amount available to the buyer for paying all or part of the amount due within a stated period of time.

Invoice Date

The date stated on an invoice; the beginning of the discount period.