Practice Quiz

Supply Chain Management

Category - Managing Supply

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To protect against external transportation costs, ____________ include any cost associated with terminals, airport gates, and labor that are incurred whether vehicles are in operation or not.
  1. Fixed operating costs
  2. Fixed variable costs
  3. Fixed labor costs
  4. Fixed instrumental costs
Explanation
Answer: A - To protect against external transportation costs, fixed operating costs include any cost associated with terminals, airport gates, and labor that are incurred whether vehicles are up operation or not. For example, the fixed costs of a trucking terminal facility or airport hub are incurred regardless of the number of trucks visiting the terminal facility or flights landing..
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