The Center-Of-Gravity Method Assumes That Distribution Costs Are a Linear

question 11

Multiple Choice

The center-of-gravity method assumes that distribution costs are a linear function of ______.

• A)distance and quantity shipped
• B)weight of a product and quantity shipped
• C)distance and speed
• D)quantity shipped and speed

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Definitions:

Settle Price

The settle price is the final price at which a futures contract is settled upon expiration or closing.

Futures Contracts

Standardized legal agreements to buy or sell a specific commodity or financial instrument at a predetermined price at a specified time in the future.

Gold

Gold is a precious metal that has been used historically as a medium of exchange and is widely held as a form of investment or hedge against economic uncertainty.

Troy Oz.

A measurement unit for valuable metals, with one troy ounce being roughly equivalent to 31.1035 grams.