When a blanket rate structure is used, which factor is eliminated as a locational determinant?
A) labor rate
B) transportation rate
C) raw material sources
D) market sources

Question

Quizplus · Accepted Answer

A blanket rate structure charges the same rate regardless of the location. This eliminates transportation rate as a locational determinant, since transportation costs are not factored into the rate. Labor rate, raw material sources, and market sources could still be factors taken into account.

When a Blanket Rate Structure Is Used, Which Factor Is