Value of Service Pricing Is Also Called

question 19

Multiple Choice

Value of service pricing is also called:

• A) charging a rate which includes a high profit
• B) charging all the traffic will bear
• C) charging a price which favors one mode over another
• D) charging a rate that has shown that shippers will use it to move their traffic

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Definitions:

100% Capacity

The maximum level of operational output that a facility can achieve under normal conditions within a specific time frame.

Fixed Costs

Expenses that do not fluctuate with changes in production level or sales volume, such as rent or salaries.

Per Unit

A measure or cost expressed as an amount per individual item or unit.

Variable

A quantity that can change or vary, often used in mathematics and statistical analysis as well as in economic models to represent changing economic indicators.