CLP Logistics Cost Management & Financial Analysis 3

Question 1

Activity-Based Costing (ABC) in logistics assigns overhead costs based on:

Accepted Answer

The specific activities that consume resources

Answer

The square footage of warehouse space used

Answer

The number of employees in each logistics function

Answer

Historical cost averages allocated by department

Question 2

Freight consolidation reduces logistics costs primarily by:

Accepted Answer

Combining multiple smaller shipments into fewer, larger loads

Answer

Negotiating lower carrier contract rates annually

Answer

Eliminating the use of third-party logistics providers

Answer

Shifting shipments from peak to off-peak periods

Question 3

In freight transportation, a fuel surcharge is typically indexed to:

Accepted Answer

Published fuel price indices such as the DOE weekly diesel average

Answer

The carrier's quarterly profit margins

Answer

The total weight of freight shipped per month

Answer

The distance between origin and destination points

Question 4

Logistics network optimization primarily aims to:

Accepted Answer

Determine optimal facility locations to minimize total distribution costs while meeting service goals

Answer

Maximize the number of distribution centers to ensure local coverage

Answer

Eliminate all outsourced transportation contracts

Answer

Standardize packaging across all product lines

Question 5

Modal shift as a logistics cost management strategy involves:

Accepted Answer

Switching from one transportation mode to another for cost or service advantages

Answer

Transitioning from manual to automated warehouse operations

Answer

Shifting order management from paper-based to digital systems

Answer

Changing peak shipping volumes to off-peak time windows

Question 6

Collaborative transportation management (CTM) reduces logistics costs by:

Accepted Answer

Sharing transportation capacity and routes with other non-competing shippers

Answer

Centralizing all procurement decisions within a single company

Answer

Outsourcing the entire transportation function to a 3PL provider

Answer

Implementing GPS tracking on all carrier vehicles

Question 7

Reverse logistics cost management is primarily concerned with:

Accepted Answer

Managing expenses associated with product returns, repairs, recycling, and disposal

Answer

Managing the cost of inbound raw material transportation from suppliers

Answer

Optimizing return freight rates through annual carrier negotiations only

Answer

Controlling backhaul transportation scheduling efficiency