C_S4TM_2023 · Question #73
On which of the following documents can you calculate profitability?
The correct answer is B. Forwarding order. Forwarding Order (B) is correct because it captures both the revenue side (charges billed to the customer) and the cost side (carrier/freight costs), making it the only document where a profitability margin can be directly calculated. A (Consignment Order) represents goods held…
Question
On which of the following documents can you calculate profitability?
Options
- AConsignment order
- BForwarding order
- CFreight order
- DForwarding quotation
How the community answered
(34 responses)- B91% (31)
- C6% (2)
- D3% (1)
Explanation
Forwarding Order (B) is correct because it captures both the revenue side (charges billed to the customer) and the cost side (carrier/freight costs), making it the only document where a profitability margin can be directly calculated.
- A (Consignment Order) represents goods held on behalf of a vendor and does not carry the billing/cost structure needed for profitability analysis.
- C (Freight Order) only reflects the cost of engaging a carrier - it has no customer revenue component, so only one side of the equation exists.
- D (Forwarding Quotation) is a pre-sales estimate sent to a customer; since it hasn't been confirmed into an actual order, no real profitability can be determined yet.
Memory tip: Think "Forward = Full picture." A Forwarding Order is the confirmed business transaction that faces both the customer (revenue) and the carrier (cost) - profit lives where both sides meet.
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