GLP GLP Financial Management & Cost Control

Question 1

Which cost category in logistics refers to the expense of holding inventory over a period of time, including storage, insurance, and obsolescence?

Accepted Answer

Carrying cost

Answer

Ordering cost

Answer

Stockout cost

Answer

Transit cost

Question 2

A logistics company has total fixed costs of $500,000 and a contribution margin per unit of $25. How many units must be sold to break even?

Accepted Answer

20,000 units

Answer

10,000 units

Answer

25,000 units

Answer

50,000 units

Question 3

What does the term 'landed cost' represent in global logistics financial planning?

Accepted Answer

Total cost including purchase price, freight, insurance, duties, and fees to deliver goods to destination

Answer

Only the purchase price of goods

Answer

The cost of unloading cargo at a port

Answer

Insurance premiums for ocean freight

Question 4

Which financial metric measures the revenue generated per dollar of logistics cost incurred?

Accepted Answer

Cost-to-Serve Ratio

Answer

Return on Assets (ROA)

Answer

Logistics Cost Ratio

Answer

Gross Margin Return on Investment (GMROI)

Question 5

In logistics budgeting, which approach builds the budget from zero each period by justifying all expenses anew rather than using prior-year figures as a baseline?

Accepted Answer

Zero-based budgeting

Answer

Incremental budgeting

Answer

Rolling forecast budgeting

Answer

Activity-based budgeting

Question 6

A 3PL provider charges $2.50 per unit for fulfillment. If a shipper processes 80,000 units per month, what is the monthly fulfillment cost?

Accepted Answer

$200,000

Answer

$160,000

Answer

$250,000

Answer

$320,000