A product's value-to-weight ratio affects the firm's transportation costs.

Question

Quizplus · Accepted Answer

The value-to-weight ratio of a product affects the transportation costs of the firm because products with a high value-to-weight ratio can be transported more cost-effectively than those with a low value-to-weight ratio, as they can generate more revenue per unit of weight. This can inform decisions on the mode of transportation used and the shipping fees charged to customers.

A Product's Value-To-Weight Ratio Affects the Firm's Transportation Costs