Which is correct regarding tapering rates?
A) the principle is based on the carrier's ability to spread certain fixed shipment costs over a greater number of miles
B) transportation rates increase with distance directly in proportion to the distance
C) in a one-source, one-market situation, the impact of the tapering rate will be to pull the location toward a point midway between the source and the market
D) uses transportation simplifications to recommend facility locations

Question

Quizplus · Accepted Answer

Tapering rates are based on the carrier's ability to spread certain fixed shipment costs over a greater number of miles. As the distance of a shipment increases, the transportation cost per mile decreases due to the ability to spread fixed costs over a larger distance.

Which Is Correct Regarding Tapering Rates