Which of the Following Statements Is True Regarding Alternative Transporting

question 211

Multiple Choice

Which of the following statements is true regarding alternative transporting modes?

• A)Waterways serve the most locations.
• B)Airfreight is the most expensive transporting mode.
• C)Railways provide the lowest cost,considering weight.
• D)Trucks offer the fastest speed.
• E)Pipelines in the U.S.are located mostly in the Northeast.

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Definitions:

Net Operating Income

A financial term representing the profit made from a company’s operations, after subtracting operating expenses from operating income.

Absorption Costing

The product cost determination method under this accounting strategy includes the expenses for direct materials, direct labor, and all manufacturing overhead, whether it is variable or fixed.

Gross Margin

A company's total sales revenue minus its cost of goods sold, divided by the total sales revenue, expressed as a percentage.

Variable Costing

An accounting method that includes only variable production costs (materials, labor, and overhead) in product costs and treats fixed manufacturing overhead as an expense of the period.