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Exam CLTD topic 1 question 166 discussion

Actual exam question from APICS's CLTD
Question #: 166
Topic #: 1
[All CLTD Questions]

Which of the following components make up the fuel surcharge?

  • A. Fuel peg/base, index, and ratio
  • B. Fuel price, carrier efficiency, and index
  • C. Fuel increase, negotiated rate, and carrier efficiency
  • D. Fuel peg/base, negotiated rate, and carrier efficiency
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Suggested Answer: D 🗳️

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am2005
8 months, 4 weeks ago
Selected Answer: A
The correct answer is A. Fuel peg/base, index, and ratio. Here's a more detailed breakdown of why the other answers is incorrect and how these components work together: Fuel Peg/Base: The predetermined fuel price at which a surcharge starts is activated. No surcharge applies if the fuel price remains below this base. Index: Tracks fuel price changes over time (often the EIA weekly retail prices). The surcharge adapts according to this index. Ratio: Defines the percentage of the fuel price increase (above the base) that is passed on to the customer.
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