JB Hunt Transportation Sells Its Delivery Service Across the United

question 32

Multiple Choice

J.B. Hunt Transportation sells its delivery service across the United States. The trucking firm is using IBM-designed on-board computers in its trucks so its drivers can send and receive messages, and store information about their loads, including estimated time of arrival. The system also allows the home office to monitor driving speed and engine information. J.B. Hunt is using technology to:

• A)increase its efficiency.
• B)increase its economies of scale.
• C)decrease its need for credible commitment.
• D)decrease its mutual dependency.
• E)do all of the above

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Definitions:

Production Facility

A location equipped with machinery and equipment for manufacturing goods, often structured to optimize workflow and efficiency.

Variable Cost

Costs that vary in direct proportion to changes in a business's production volume or level of activity.

Unit Product Costs

The total cost associated with producing a single unit of product, including direct materials, direct labor, and overhead.

Intermediate Product

A product that requires further processing before it becomes a finished good.