[NinaSun]

The Long Haul Trucking Company is developing metric for its drivers. The company computes variable costs of each load based upon miles driven and allocates fixed costs based upon time consumed. Load costing standards consider safe driving speeds and Department of Transportation regulations on hours of service ( the amount of time the driver can be on duty or drive). The most effective metric for driver performance would likely be:

a. Achievement of delivered loads in allowed times

b. Percentage increase in delivered loads below standard

c. Contribution per mile driven

d. Gross margin per mile driven.

The answer is “a”. I think if the company use “a” as measure, drivers would tend to drive over speed. I chose “b”. Just to make sure the driver make progress and comply with speed and driving hour standards. I am not sure whether I understand “b” correctly.

AUD-74,75 11/2014
REG-80 04/2015
FAR-74, 91 11/2015
BEC-79 08/2015

[Anonymous]

I chose a, other answers are just weird and don't make sense. I am not sure percentage increase can be used as independent variable

[Missy]

Since the standards already figure for safe driving speeds, one way to increase the percent below standard would be to speed. B encourages the scenario you're hoping to avoid.

Licensed Massachusetts Non Reporting CPA since 2012
Finance/Admin/HR Manager

[Anonymous]

I doubt that the allocation of fixed cost can affect driving, these are not bonuses

[Author]

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