The Word Cost-Effective as It Relates to the Definition of Logistics

question 271

Multiple Choice

The word cost-effective as it relates to the definition of logistics management implies that

• A)while it is important to drive down logistics costs, all channel members must equally benefit financially or the chain will not function effectively.
• B)speed of delivery must be measured against increased savings.
• C)while it is important to drive down logistics costs, customer buying requirements must be a part of the equation.
• D)the need for multiple carriers always results in lower profit margins and therefore should be avoided.
• E)the choice of intermediaries should be made on their ability to perform their tasks efficiently even if additional costs must be passed on to the consumer.

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was acquired and put into use.

Statement of Cash Flows

An accounting document that illustrates adjustments in balance sheet figures and their effect on cash and similar resources, dividing the analysis among operating, investing, and financing sectors.

Indirect Method

A cash flow statement approach that adjusts net income for non-cash transactions and changes in working capital.

Operating Activities

Transactions and events that pertain to the primary business operations, impacting the net income and involving cash flows related to operating expenses and revenues.