Value of Service Pricing Is Based on the Concept Which

question 15

Multiple Choice

Value of service pricing is based on the concept which states:

• A) shippers should pay rates high enough to insure a high profit for the carrier.
• B) carriers should set prices based on the level of service they offer
• C) rates should be related to value of the commodity - the higher the value of the commodity the higher the rate should be
• D) shippers should offer a price that they feel is fair in relation to the service offered.

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Definitions:

Rate of Return

The profit or deficit experienced by an investment within a certain timeframe, depicted as a percentage of the investment's original price.

Required Return

The minimum expected return investors demand for an investment, considering its risk.