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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
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