Exam CSCP topic 1 question 679 discussion

Answer is B as: • Transportation is considered a medium fixed cost and low variable cost as huge capacity choice is Water • Transportation is considered a low fixed cost and high variable cost choice is Air • Transportation is considered a low fixed cost as highways provided by government and medium variable cost as small capacity choice is Truck • Transportation is considered a high fixed cost equipment, tracks and terminals and low variable cost choice is Rail • Transportation is considered a highest fixed cost and lowest variable cost choice is Pipelines

Trucks have relatively low fixed costs compared to other modes, mainly involving the purchase and maintenance of vehicles. Variable costs, including fuel, tolls, and driver wages, are moderately high but depend heavily on the distance traveled and payload.

Truck is low fixed cost.