Which of the Following Assumptions Is not an Assumption of the Transportation

question 11

Multiple Choice

Which of the following assumptions is not an assumption of the transportation model?

• A) Shipping costs per unit are constant.
• B) There is one transportation route between each source and destination.
• C) There is one transportation mode between each source and destination.
• D) Actual total supply and actual total demand must be equal.

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Definitions:

Average Price

The mean amount paid or received over a range of prices, goods, or services, calculated by dividing the total cost by the number of units.

Work In Process Inventory

The account that reflects the costs of incomplete products, which include labor, material, and overhead costs.

Standard Labor Cost

A predetermined cost of the labor time required to produce a unit of output, factoring in wages, benefits, and other labor-related costs.

Sales Volume Variance

The difference between the actual units sold and the budgeted units sold, multiplied by the standard selling price per unit.