A Disadvantage of LTL Shipping Is That It ______

question 27

Multiple Choice

A disadvantage of LTL shipping is that it ______.

• A)costs much more than FedEx or UPS
• B)has a higher risk of product damage or loss because of the frequent freight handling at the terminals
• C)is more regulated than other forms of shipping
• D)frequently does not meet ISO requirements

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Definitions:

Voucher Payment

A method of paying bills where a record is kept of all invoices and payments.

Discount Lost

The additional expense a company incurs when it fails to take advantage of the payment terms offered by suppliers, like missing early payment discounts.

Gross Method

Accounting treatment for purchase discounts where discounts are not considered until actually taken.

Note Payable

A promissory note from the maker’s point of view.