AVMG 4200 EXAM 1 QUESTIONS AND ANSWERS
The explosion in international trade at the end of World War II that continues to this day
is a direct result of three main factors; among them are - Answers :transportation over
great distances has become easy. cheap, and ubiquitous
Utility or Value in an economic system described as the "unique perception of value
(desire) in the hearts and minds of the individual consumer" is called _____ value. -
Answers :Possession
The "Value Proposition" that must be satisfied for the "invisible hand" to move goods
from areas of surplus to areas of shortage holds that the _____ must be _______ the
______ . - Answers :change in total value, greater than or equal to, change in total cost
In order for there to be "Free Markets" several preconditions must be met; among the
"top three" for a modern economic system are _____ . - Answers :legally enforceable
contracts
One measure of efficiency in providing and selling air passenger transport capacity is -
Answers :Load Factor
The accounting paradigm that characterizes costs according to Direct Operating,
Indirect Operating, and Non-Operating categories is the _____ approach. - Answers
:cost accounting
The Supply Chain Concept - Answers :developed from the previous Physical
Distribution concept.
The market where transportation services are offered consists of "_____." - Answers
:buyers
"Combination Carriers" in air freight carry both _____ and _____. - Answers
:passengers, cargo
____ is used primarily for the long-distance carriage of low-value goods. - Answers :Rail
_____ is used primarily to ship small quantities of high value, low weight goods. -
Answers :Air
Product types that represent the market for air freight include items that are - Answers
:sensitive to environmental extremes
Air Freight typically represents - Answers :a lower share of revenues than passenger
traffic
, Product types that represent the market for air freight include items that are - Answers
:perishable
"Air transportation service capability" can be defined as - Answers :a bundle of
resources available to provide air transportation services
The "Cost of Movement" (transportation price and features) varies widely among the
different modes of transportation available to a shipper. Which transportation mode is
typically the MOST ACCESSIBLE? - Answers :Truck
The "Cost of Movement" (transportation price and features) varies widely among the
different modes of transportation available to a shipper. Which transportation modes are
typically the MOST RELIABLE? - Answers :Pipeline and Truck
"Possession Value" is created by the _____ function in an organization. - Answers
:Marketing
Goods will move from areas of surplus to areas of shortage as if by a mysterious
"Invisible Hand" as long as three fundamental conditions are met; among these are
_____ . - Answers :free market conditions are provided
Under the "Managerial Accounting" paradigm, the majority of transportation costs are
characterized as - Answers :fixed
The focus on "Fixed" vs. "Variable" costs that uses time as the basis of categorization is
the _____ approach. - Answers :cost accounting
The value created by a modern Supply/Value Chain is harvested - Answers :only at the
retail (final customer) step of the process
Transportation adds value in an economic system by generating - Answers :time and
Place utility
"Time and Place Utility" refers to the concept or principle of - Answers :goods in
shortage are worth more than goods in surplus
The economic deregulation of the transportation industry began with - Answers :rail in
1976
The maximum price per seat (pax) or pound (cargo) should be set to - Answers :capture
the total market value of the flight
Determining the tax burden for a firm can best be determined through - Answers :cost
accounting
The explosion in international trade at the end of World War II that continues to this day
is a direct result of three main factors; among them are - Answers :transportation over
great distances has become easy. cheap, and ubiquitous
Utility or Value in an economic system described as the "unique perception of value
(desire) in the hearts and minds of the individual consumer" is called _____ value. -
Answers :Possession
The "Value Proposition" that must be satisfied for the "invisible hand" to move goods
from areas of surplus to areas of shortage holds that the _____ must be _______ the
______ . - Answers :change in total value, greater than or equal to, change in total cost
In order for there to be "Free Markets" several preconditions must be met; among the
"top three" for a modern economic system are _____ . - Answers :legally enforceable
contracts
One measure of efficiency in providing and selling air passenger transport capacity is -
Answers :Load Factor
The accounting paradigm that characterizes costs according to Direct Operating,
Indirect Operating, and Non-Operating categories is the _____ approach. - Answers
:cost accounting
The Supply Chain Concept - Answers :developed from the previous Physical
Distribution concept.
The market where transportation services are offered consists of "_____." - Answers
:buyers
"Combination Carriers" in air freight carry both _____ and _____. - Answers
:passengers, cargo
____ is used primarily for the long-distance carriage of low-value goods. - Answers :Rail
_____ is used primarily to ship small quantities of high value, low weight goods. -
Answers :Air
Product types that represent the market for air freight include items that are - Answers
:sensitive to environmental extremes
Air Freight typically represents - Answers :a lower share of revenues than passenger
traffic
, Product types that represent the market for air freight include items that are - Answers
:perishable
"Air transportation service capability" can be defined as - Answers :a bundle of
resources available to provide air transportation services
The "Cost of Movement" (transportation price and features) varies widely among the
different modes of transportation available to a shipper. Which transportation mode is
typically the MOST ACCESSIBLE? - Answers :Truck
The "Cost of Movement" (transportation price and features) varies widely among the
different modes of transportation available to a shipper. Which transportation modes are
typically the MOST RELIABLE? - Answers :Pipeline and Truck
"Possession Value" is created by the _____ function in an organization. - Answers
:Marketing
Goods will move from areas of surplus to areas of shortage as if by a mysterious
"Invisible Hand" as long as three fundamental conditions are met; among these are
_____ . - Answers :free market conditions are provided
Under the "Managerial Accounting" paradigm, the majority of transportation costs are
characterized as - Answers :fixed
The focus on "Fixed" vs. "Variable" costs that uses time as the basis of categorization is
the _____ approach. - Answers :cost accounting
The value created by a modern Supply/Value Chain is harvested - Answers :only at the
retail (final customer) step of the process
Transportation adds value in an economic system by generating - Answers :time and
Place utility
"Time and Place Utility" refers to the concept or principle of - Answers :goods in
shortage are worth more than goods in surplus
The economic deregulation of the transportation industry began with - Answers :rail in
1976
The maximum price per seat (pax) or pound (cargo) should be set to - Answers :capture
the total market value of the flight
Determining the tax burden for a firm can best be determined through - Answers :cost
accounting
