Certified Supply Chain Professional (CSCP) Practice Exam

What do material-handling costs refer to?

1. Costs associated with transporting goods

2. Costs incurred from handling products in storage

3. Costs for employee training on equipment usage

4. Costs of packaging materials for transit

The correct answer is: Costs incurred from handling products in storage

Material-handling costs specifically pertain to the expenses associated with the movement and management of products within a facility, particularly during the storage phase. This includes various activities such as loading, unloading, moving, storing, and retrieving goods within warehouses or distribution centers. These costs are crucial for assessing the efficiency of operations and include labor, equipment, and overhead related to the handling of materials. While transporting goods involves direct logistics and freight costs, and employee training related to equipment usage is important for operational safety and efficiency, those are distinct categories of costs. The costs of packaging materials are focused on preparing goods for transport and do not fall under material-handling costs, which primarily address the management of goods after they arrive at a facility and before they are shipped out again.