When doing international business, a company’s total line-haul costs will vary with the:

When doing international business, a company’s total line-haul costs will vary with the:

A. weight shipped.

B. distance shipped.

C. pallets shipped.

D. volume shipped.

View Answer

Answer: B

Explanation:

In international business, a company’s total line-haul costs will vary with the distance shipped. Line-haul costs refer to the expenses associated with the transportation of goods over long distances. These costs are primarily dependent on the distance between the origin and destination, as longer distances generally incur higher fuel, labor, and vehicle maintenance costs.

Weight shipped affects the cost, but the primary variation in line-haul costs is due to distance. Pallets shipped and volume shipped are factors that influence transportation costs but are more related to load optimization and handling rather than the core distance-related costs.

Reference: Coyle, J. J., Langley, C. J., Novack, R. A., & Gibson, B. J. (2016). "Supply Chain Management: A Logistics Perspective."

Bowersox, D. J., Closs, D. J., & Cooper, M.

B. (2013). "Supply Chain Logistics Management."