AVMG 4200 TEST 1 QUESTIONS AND ANSWERS
The three fundamental forms of utility under capitalist economic theory are: - Answers
:Possession, Form, and Time/Space
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
In order for there to be "Free Markets" several preconditions must be met; among the
"top three" for a modern economic system are _____ . - Answers :a predictable and
stable means of value exchange
Utility or Value in an economic system created by the "physical transformation of
materials from raw to finished product" is called _____ value. - Answers :Form
The cost per passenger (or pound) for a flight is literally impossible to calculate in
advance because - Answers :the costs are fixed but demand varies
The economic deregulation of the transportation industry began with - Answers :rail in
1976
"Managerial" accounting deals primarily with - Answers :assessing business alternatives
Under the "Cost Accounting" paradigm, labor is typically characterized as a _____ cost.
- Answers :variable
Transportation adds value in an economic system by generating - Answers :time and
Place utility
The _____ cost concept is a core principle of the modern Supply/Value Chain model. -
Answers :total
The value created by a modern Supply/Value Chain is harvested - Answers :only at the
retail (final customer) step of the process
A critical outcome of the supply chain is to deliver - Answers :the right product to the
right place.
"Freight Eligibility" determines and goes along with and determines _____. - Answers
:modal option selection
The buying of transportation services is typically either done by a _____ or _____. -
Answers :shipper, forwarder
, In the competitive environment for transportation services, _____ refers to the modal
characteristic defined by the convenience and number of dropoff & pickup locations. -
Answers :accessibility
The two main negotiation approaches between freight buyers and carriers are the
_____ and _____. - Answers :adversarial, collaborative
Product types that represent the market for air freight include items that are - Answers
:valuable relative to weight and volume
In the "Physical perspective" of the aviation industry macro supply/value chain, the
system is made up of - Answers :nodes (locations) and arcs (routes)
The "arcs" in the physical model of the aviation industry supply/value chain perspective
can be either _____ or _____. - Answers :surface, air
The three types of Air Freight Carriers are - Answers :Integrated, Combination,
Dedicated (all-cargo)
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 FASTEST? - Answers :Air and Truck
"Time & Place Value" is created by the _____ function in an organization. - Answers
:Logistics
"Possession Value" is created by the _____ function in an organization. - Answers
:Marketing
"Yield (or Revenue) Management" pricing strategy attempts to sell each ticket or waybill
- Answers :for the maximum price possible
Profit maximizing decisions can only be determined through - Answers :managerial
accounting
Determining the tax burden for a firm can best be determined through - Answers :cost
accounting
The "broad rule making powers" granted by Congress to the cabinet level secretaries -
Answers :have the full force of criminal and civil law until overturned by the Supreme
Court
In a modern Supply/Value Chain, - Answers :value is created only by marketing,
manufacturing, and transportation
The three fundamental forms of utility under capitalist economic theory are: - Answers
:Possession, Form, and Time/Space
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
In order for there to be "Free Markets" several preconditions must be met; among the
"top three" for a modern economic system are _____ . - Answers :a predictable and
stable means of value exchange
Utility or Value in an economic system created by the "physical transformation of
materials from raw to finished product" is called _____ value. - Answers :Form
The cost per passenger (or pound) for a flight is literally impossible to calculate in
advance because - Answers :the costs are fixed but demand varies
The economic deregulation of the transportation industry began with - Answers :rail in
1976
"Managerial" accounting deals primarily with - Answers :assessing business alternatives
Under the "Cost Accounting" paradigm, labor is typically characterized as a _____ cost.
- Answers :variable
Transportation adds value in an economic system by generating - Answers :time and
Place utility
The _____ cost concept is a core principle of the modern Supply/Value Chain model. -
Answers :total
The value created by a modern Supply/Value Chain is harvested - Answers :only at the
retail (final customer) step of the process
A critical outcome of the supply chain is to deliver - Answers :the right product to the
right place.
"Freight Eligibility" determines and goes along with and determines _____. - Answers
:modal option selection
The buying of transportation services is typically either done by a _____ or _____. -
Answers :shipper, forwarder
, In the competitive environment for transportation services, _____ refers to the modal
characteristic defined by the convenience and number of dropoff & pickup locations. -
Answers :accessibility
The two main negotiation approaches between freight buyers and carriers are the
_____ and _____. - Answers :adversarial, collaborative
Product types that represent the market for air freight include items that are - Answers
:valuable relative to weight and volume
In the "Physical perspective" of the aviation industry macro supply/value chain, the
system is made up of - Answers :nodes (locations) and arcs (routes)
The "arcs" in the physical model of the aviation industry supply/value chain perspective
can be either _____ or _____. - Answers :surface, air
The three types of Air Freight Carriers are - Answers :Integrated, Combination,
Dedicated (all-cargo)
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 FASTEST? - Answers :Air and Truck
"Time & Place Value" is created by the _____ function in an organization. - Answers
:Logistics
"Possession Value" is created by the _____ function in an organization. - Answers
:Marketing
"Yield (or Revenue) Management" pricing strategy attempts to sell each ticket or waybill
- Answers :for the maximum price possible
Profit maximizing decisions can only be determined through - Answers :managerial
accounting
Determining the tax burden for a firm can best be determined through - Answers :cost
accounting
The "broad rule making powers" granted by Congress to the cabinet level secretaries -
Answers :have the full force of criminal and civil law until overturned by the Supreme
Court
In a modern Supply/Value Chain, - Answers :value is created only by marketing,
manufacturing, and transportation
