In distribution, which cost element varies with distance rather than weight?

In distribution, which cost element varies with distance rather than weight?

• A. Line-haul costs
• B. Load
• C. Landed cost
• D. Leading indicator

Answer: (A)

Line-haul costs are the transportation charges tied to the distance goods are moved. If you ship the same weight over a longer distance, these costs rise because they are driven by distance. In contrast, charges based on weight change with how heavy the shipment is, not with how far it travels. Landed cost is the total delivered cost that includes line-haul among other components, so distance affects it mainly through the line-haul portion. A leading indicator is a forecasting measure, not a cost element. So line-haul costs vary with distance rather than weight.

Line-haul costs are the transportation charges tied to the distance goods are moved. If you ship the same weight over a longer distance, these costs rise because they are driven by distance. In contrast, charges based on weight change with how heavy the shipment is, not with how far it travels. Landed cost is the total delivered cost that includes line-haul among other components, so distance affects it mainly through the line-haul portion. A leading indicator is a forecasting measure, not a cost element. So line-haul costs vary with distance rather than weight.