Alex Has to Transport Iron Ore from New Orleans to Memphis

question 97

Multiple Choice

Alex has to transport iron ore from New Orleans to Memphis. Which mode of transport is he more likely to use?

• A) Airways
• B) Truck
• C) Railroad
• D) Inland waterways
• E) Monorail

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Definitions:

Rate Variances

The difference between the actual rate paid for inputs and the standard rate expected, often analyzed for labor or overhead rates.

Efficiency Variances

The difference between the actual amount of an input used and the expected (or standard) amount needed, multiplied by the standard cost per unit of input.

Landing Gears

A critical aircraft component that supports the plane during landing and takeoff.

Materials Price Variance

The difference between the actual cost of materials and the expected cost, multiplied by the quantity of materials used.