"Comparing the total cost of ocean freight versus air freight, air freight may be cheaper." What components are considered when making the previous statement?
A) Insurance rates
B) Packing
C) Replacement cost of damaged goods
D) Inventory cost
E) All of the above

Question

Quizplus · Accepted Answer

The statement considers various components that can affect the total cost of shipping, including insurance rates (since air freight may require lower insurance premiums due to shorter transit times and potentially lower risk of damage), packing (air freight may require less packaging due to less handling), replacement cost of damaged goods (air freight might have a lower risk of damage, reducing potential replacement costs), and inventory cost (air freight's faster delivery can reduce inventory holding costs). Therefore, all these factors (A, B, C, D) are relevant when comparing the total cost of ocean versus air freight.

"Comparing the Total Cost of Ocean Freight Versus Air Freight