Question

The Long Haul Trucking Company is developing metrics for its drivers. The company computesvariable 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 onhours of service (the amount of time the driver can be on duty or drive). The most effective metric for driverperformance would likely be:a. Contribution per mile driven.b. Gross margin per mile driven.c. Achievement of delivered loads in allowed times.d. Percentage increase in delivered loads below standard.

Answer 1

The correct answer is C: Achievement of delivered loads in allowed times

Step-by-step explanation:

Drivers have a higher tendency to understand the non-financial measures denoting controllable characteristics of their role or their job. From the case in the question, it is clear that the most likely and effective measure would be achieving a delivery within the allowed times. This is based on the assumption that miles and hours of service are considered in the standards.