Which of the Following Is True of Pipelines as a Transportation

question 44

Multiple Choice

Which of the following is true of pipelines as a transportation alternative?

• A) They provide the most efficient way for moving bulky commodities over long distances.
• B) They control the largest share of the freight business as measured by ton-miles.
• C) They can accommodate shipments of only a small number of products.
• D) They represent the fastest method of transportation of products especially crude oil.

---

Definitions:

FIFO Approach

A method of inventory valuation where the first items put into inventory are the first ones to be recorded as sold.

Sum-Of-The-Years'-Digits Method

A depreciation technique that results in a more accelerated write-off of an asset over its useful life, by applying a decreasing fraction to its depreciable cost.

Repairs

Expenditures that restore an asset to its previous operating condition or maintain the asset in its current condition, without significantly enhancing its value.

Maintenance Costs

The expenses incurred to keep an asset in usable condition or restore it to its original condition without enhancing its value.