The List of Factors Considered in Rating Freight Is Compounded

question 48

Multiple Choice

The list of factors considered in rating freight is compounded by the specific commodity that is being shipped. The basic steps involved in the determination of the applicable rates are listed below, with one exception. Which is the exception?

• A) Use the classification to look up the commodity being shipped and determine its rating.
• B) Select the appropriate tariff and determine the rate basis number that applies to the origin-destination combination of the shipment.
• C) Cross-reference the rating and the rate base number in the section of the tariff that gives class rates in cents per 100 pounds shipped.
• D) Verify with the Department of Commerce that the appropriate rate and classification are being applied.

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Definitions:

Economies-of-Scale Benefit

The cost advantage achieved when production becomes efficient, leading to a reduced cost per unit as output increases.

Inputs

Resources, information, or energy required for a process, system, or project to function effectively.

M&A Failures

The unsuccessful outcomes or underperformance of mergers and acquisitions, often due to cultural clashes, poor integration, or flawed strategy.

Diversification

A strategy employed by businesses to enter new markets or industries, or develop new products, to reduce risks and dependence on a single income source.