Which of the following statements about the transporting function is TRUE?
A) Among transportation modes, an advantage of air transport is its ability to handle a variety of goods.
B) Because transportation costs are less than 1 percent of costs for most products, marketing managers do not need to consider them when making strategy decisions.
C) Pipelines are generally one of the fastest modes of transportation.
D) In most countries, government plays little role in transportation.
E) Transporting costs can be a large part of the total cost for heavy products that are low in value.

Question

Quizplus · Accepted Answer

Transporting costs can be a significant factor in determining the overall cost of heavy products that have low value. This is because it may be difficult to justify the expense of transporting such products over long distances. For example, transporting a load of gravel or sand may require a high shipping cost relative to the value of the product being transported. As a result, marketing managers need to carefully consider the transportation costs when making strategy decisions for such products. The other statements are false: air transport is not always the best for handling a variety of goods; transportation costs can be a significant factor even when they are less than 1 percent of costs; pipelines are not generally among the fastest modes of transportation; and governments play a significant role in transportation in many countries.

Which of the Following Statements About the Transporting Function Is