LSCM 4560 EXAM 3 QUESTIONS WITH VERIFIED
ANSWERS
Managers attempting to gain control over their inbound shipments would: - Answers -
Use the term of sale "FOB Origin"
The relevant market area refers to: - Answers - The particular area that affects the rate
set by a carrier
Third-degree price discrimination is: - Answers - Where a seller sets two or more
different prices for two or more separate groups of buyers for the same commodity or
service
Using the attached NMFC and rate table from zipcode 64154 to 75052, please compute
the total freight charge for 8,250 pounds of molded plastic pick-up truck bed liners with a
density of 7 pounds per cubic foot. - Answers - $5,453.25
Using the attached NMFC and rate table from zipcode 64154 to 75052, please compute
the total freight charge for 150 pounds of molded plastic luggage shells in boxes, nested
solid. - Answers - $112.97
Under the terms of sale, "FOB origin," title [ownership] to the freight transfers: - Answers
- At point of origin
What is the appropriate classification (from the NMFC in the provided PDF) for marble
blocks, on skids, mounted horizontally with 48 inch by 48 inch dimensions? - Answers -
Class 60
Under which form of pricing does the seller own goods while in-transit? - Answers - FOB
Destination
Identify the appropriate classification (from the NMFC in the provided PDF) for a
wardrobe cabinet with a density of 11 pounds per cubic foot - Answers - Class 92.5
Value of service pricing is best defined as: - Answers - what the traffic will bear
Monopolistic competition is a market structure where: - Answers - Many small sellers
exist, but there is some differentiation of products
Which of the following is not a condition for pure competition? - Answers - Involves a
heterogeneous product or service
, Which of the following is true? - Answers - The theory of contestable markets
substitutes potential competition for the active participation of many sellers.
What is the weight break for a class 200 item between M1M and M2M? (NOTE: You will
need to use the rate table on the first page of the handout--between origin zip 64154
and destination zip 75052) - Answers - 16.77CWT
Drivers in private fleets provide a unique advantage because: - Answers - They can act
as a salesperson
The primary reason that drives the decision to maintain a private fleet is: - Answers -
Greater control and customer service
Which of the following is a disadvantage associated with outsourcing the transportation
fleet? - Answers - Operational control
Management and overhead accounts for what proportion of the fixed cost of trucking? -
Answers - 50%
Private trucking fleets account for what percent of the total freight tonnage moved in the
United States? - Answers - Just under half.
Most private water movements occur by - Answers - Barge
The question of where to position the private fleet is a perplexing question in many
firms. A decentralized operation usually is found when: - Answers - Separate divisions
have different operating and vehicle requirements
The "last resort" advantage of private fleets emenates from: - Answers - The ability to
move goods when a lack of capable for-hire service exists.
Private transportation can be best defined as: - Answers - Any person that transports
goods they own to further a commercial enterprise
Private fleets operating as for-hire carriers in interstate commerce must register with the
STB and obtain for-hire authority. Private carriers that want to generate revnue on their
backhauls but not register with the STB may: - Answers - All of the above
Deregulation of motor carriers in 1980 resulted in: - Answers - Private carriers being
able to act as for-hire carriers
Some shippers maintain a small private fleet despite outsourcing the bulk of their
transportation requirements. The rationale for this approach stems from: - Answers - the
ability to "get back in the game" if the for-hire carriers demanded rates considered too
high
ANSWERS
Managers attempting to gain control over their inbound shipments would: - Answers -
Use the term of sale "FOB Origin"
The relevant market area refers to: - Answers - The particular area that affects the rate
set by a carrier
Third-degree price discrimination is: - Answers - Where a seller sets two or more
different prices for two or more separate groups of buyers for the same commodity or
service
Using the attached NMFC and rate table from zipcode 64154 to 75052, please compute
the total freight charge for 8,250 pounds of molded plastic pick-up truck bed liners with a
density of 7 pounds per cubic foot. - Answers - $5,453.25
Using the attached NMFC and rate table from zipcode 64154 to 75052, please compute
the total freight charge for 150 pounds of molded plastic luggage shells in boxes, nested
solid. - Answers - $112.97
Under the terms of sale, "FOB origin," title [ownership] to the freight transfers: - Answers
- At point of origin
What is the appropriate classification (from the NMFC in the provided PDF) for marble
blocks, on skids, mounted horizontally with 48 inch by 48 inch dimensions? - Answers -
Class 60
Under which form of pricing does the seller own goods while in-transit? - Answers - FOB
Destination
Identify the appropriate classification (from the NMFC in the provided PDF) for a
wardrobe cabinet with a density of 11 pounds per cubic foot - Answers - Class 92.5
Value of service pricing is best defined as: - Answers - what the traffic will bear
Monopolistic competition is a market structure where: - Answers - Many small sellers
exist, but there is some differentiation of products
Which of the following is not a condition for pure competition? - Answers - Involves a
heterogeneous product or service
, Which of the following is true? - Answers - The theory of contestable markets
substitutes potential competition for the active participation of many sellers.
What is the weight break for a class 200 item between M1M and M2M? (NOTE: You will
need to use the rate table on the first page of the handout--between origin zip 64154
and destination zip 75052) - Answers - 16.77CWT
Drivers in private fleets provide a unique advantage because: - Answers - They can act
as a salesperson
The primary reason that drives the decision to maintain a private fleet is: - Answers -
Greater control and customer service
Which of the following is a disadvantage associated with outsourcing the transportation
fleet? - Answers - Operational control
Management and overhead accounts for what proportion of the fixed cost of trucking? -
Answers - 50%
Private trucking fleets account for what percent of the total freight tonnage moved in the
United States? - Answers - Just under half.
Most private water movements occur by - Answers - Barge
The question of where to position the private fleet is a perplexing question in many
firms. A decentralized operation usually is found when: - Answers - Separate divisions
have different operating and vehicle requirements
The "last resort" advantage of private fleets emenates from: - Answers - The ability to
move goods when a lack of capable for-hire service exists.
Private transportation can be best defined as: - Answers - Any person that transports
goods they own to further a commercial enterprise
Private fleets operating as for-hire carriers in interstate commerce must register with the
STB and obtain for-hire authority. Private carriers that want to generate revnue on their
backhauls but not register with the STB may: - Answers - All of the above
Deregulation of motor carriers in 1980 resulted in: - Answers - Private carriers being
able to act as for-hire carriers
Some shippers maintain a small private fleet despite outsourcing the bulk of their
transportation requirements. The rationale for this approach stems from: - Answers - the
ability to "get back in the game" if the for-hire carriers demanded rates considered too
high
