APICS Certified in Logistics, Transportation and Distribution (CLTD) — Question 93

The practice of carriers charging all of their customers more during the peak harvest season is a type of pricing known as:

Answer options

• A. differential rates.
• B. incremental rates.
• C. distributive rates.
• D. commodity rates.

Correct answer: D

Explanation

The correct answer is D, as commodity rates refer to pricing based on the nature of the goods and demand, which often increases during peak seasons. The other options, like differential or incremental rates, refer to different pricing strategies that do not specifically address seasonal price changes for all customers.