APICS Certified in Logistics, Transportation and Distribution (CLTD) — Question 94

Higher throughput operations enable private warehouses to:

Answer options

• A. spread out variable costs over large output volumes
• B. spread out fixed costs over large output volumes.
• C. allocate total unit costs on the basis of traffic volume.
• D. accomplish better facility utilization with declining overheads.

Correct answer: D

Explanation

The correct answer is D because higher throughput leads to more efficient use of the facility, which can lower overhead costs. Options A and B focus on cost distribution but do not address the impact on facility utilization. Option C discusses cost allocation without considering the advantages of improved operational efficiency.