What Major Factor Is the Main Determinant in Air Cargo

question 21

Multiple Choice

What major factor is the main determinant in air cargo pricing?

• A) discounts from full price levels as is done with motor carriers
• B) Weight
• C) empty space on the aircraft
• D) direction of travel of the shipment

Calculate investment turnover and understand its implications.

Calculate profit margin and understand its relevance in assessing divisional performance.

Understand the impact of negotiated transfer prices on operating income of divisions and the company as a whole.

Allocate support department expenses using appropriate cost drivers.

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Definitions:

Project Profitability Index

The Project Profitability Index is a financial metric used to evaluate the attractiveness of an investment or project, calculated as the present value of future cash flows divided by the initial investment.

Investment Proposals

Formal suggestions or plans put forward for consideration, relating to the allocation of resources to generate financial gains.

Preference

In finance, this term relates to shares or securities that have priority over common shares in the payment of dividends and upon liquidation.

Profitability Index

A calculation that determines the relative profitability of an investment, calculated by dividing the present value of future cash flows by the initial investment cost.