One Problem in the Interstate Trucking Industry Is the Number

question 98

Multiple Choice

One problem in the interstate trucking industry is the number of trucks that return after making a delivery with an empty truck.There is a Web site where independent interstate truckers can look for loads that they can carry with them on their return trip.Because the trucks would be returning empty (and inefficiently) , truckers, who use this Web site to get business that they would not have had without it, give a reduced shipping rate.This reduced rate is an example of

• A)yield management pricing.
• B)penetration pricing.
• C)target pricing.
• D)cost-plus pricing.
• E)odd-even pricing.

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Definitions:

Fixed Costs

Expenses that do not change in proportion to the activity of a business, such as rent, salaries, and equipment costs.

Net Income

The net income of a business following the deduction of all costs and taxes from its earnings.

Specific Identification Method

An inventory valuation method where costs are directly assigned to individual units of inventory, enabling precise profit margin calculations.

Inventory Valuation

The method used to determine the cost associated with an inventory at the end of a financial period, which affects cost of goods sold and, consequently, net income.