Question

Which of the following procedures is the most valuable in an engagement involving the traffic department operations of a large manufacturer?

A. Verify that all bills of lading are prenumbered.
B. Trace selected items from the weekly demurrage report to supporting documentation.
C. Review procedures for selection of routes and carriers.
D. Obtain written confirmation from the regulatory agencies that all carriers used are properly licensed and bonded.

Answer 1

The most valuable procedure in an engagement involving the traffic department operations of a large manufacturer is to review procedures for selection of routes and carriers.

Step-by-step explanation:

The most valuable procedure in an engagement involving the traffic department operations of a large manufacturer is to Review procedures for selection of routes and carriers. This is important because selecting optimal routes and carriers can help reduce transportation costs and increase efficiency. Additionally, it ensures that the manufacturer is using the most appropriate transportation methods for their products.

For example, if a large manufacturer is shipping finished goods over congested street networks or freeways, it can increase costs and reduce profits. By reviewing and optimizing the procedures for selecting routes and carriers, the manufacturer can identify locations near uncrowded freeways, which permit easy transportation of workers and materials to and from the factory.