Which of the Following Is NOT a Characteristic of Cost-Of-Service

question 41

Multiple Choice

Which of the following is NOT a characteristic of cost-of-service pricing?

• A)​Prices are established based on fixed and variable costs of transportation
• B)​Prices vary based on volume and distance
• C)​Prices tend to rise as shipping distance increases
• D)​Carriers price their services at the highest levels the markets will bear

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Definitions:

Inventory System

Methods and procedures used to track materials, work-in-progress, and finished goods from acquisition through sale.

Weighted-Average

A calculation method where different data points are given different weights, often used in inventory valuation and cost accounting.

Ending Inventory

The final amount of goods available for sale at the end of an accounting period.

Perpetual System

An inventory system that continually updates inventory records and cost of goods sold after each purchase or sale.