Due to Containerization,the Transportation Costs Associated with the Globalization of Production

question 68

Multiple Choice

Due to containerization,the transportation costs associated with the globalization of production have:

• A) remained the same
• B) increased dramatically
• C) declined
• D) increased slightly
• E) reduced insurance costs

---

Definitions:

Machine Hours

represent the total time that production equipment or machines are operated within a specific period, often used to allocate manufacturing overhead.

Contribution Margin

Contribution margin is the difference between sales revenue and variable costs, indicating how much revenue contributes towards covering fixed costs and generating profit.

Direct Labour Hours

The total hours worked by employees directly involved in the production process, a key factor in calculating labor costs and efficiency.

Grinding Minutes

A measure of the time spent on grinding processes in manufacturing, often used to allocate costs or measure productivity.