Which of the following is a way to manage fuel costs effectively?

Prepare for the Enterprise Finish Line Test. Study with flashcards and multiple choice questions, each with hints and explanations. Get exam-ready!

Multiple Choice

Which of the following is a way to manage fuel costs effectively?

Explanation:
Charging for missed fuel is a method that can effectively manage fuel costs as it incentivizes accountability and ensures that users are mindful of fuel usage. When individuals or teams are required to cover the costs of fuel they failed to return, it promotes more conscientious behavior regarding fuel consumption. This practice helps the organization to mitigate losses associated with unreturned fuel and encourages responsible use, thus directly impacting overall fuel expense management. The other options, while potentially having their own merits, do not effectively manage fuel costs. Providing unlimited mileage might lead to excessive fuel consumption without any limitation imposed. Offering free fuel for loyalty could result in higher fuel expenses for the company without necessarily ensuring that customers are being responsible with their usage. Extending fuel discounts alone does not directly control fuel costs; while it might attract customers, it could also lead to a decrease in overall margins if not managed alongside usage.

Charging for missed fuel is a method that can effectively manage fuel costs as it incentivizes accountability and ensures that users are mindful of fuel usage. When individuals or teams are required to cover the costs of fuel they failed to return, it promotes more conscientious behavior regarding fuel consumption. This practice helps the organization to mitigate losses associated with unreturned fuel and encourages responsible use, thus directly impacting overall fuel expense management.

The other options, while potentially having their own merits, do not effectively manage fuel costs. Providing unlimited mileage might lead to excessive fuel consumption without any limitation imposed. Offering free fuel for loyalty could result in higher fuel expenses for the company without necessarily ensuring that customers are being responsible with their usage. Extending fuel discounts alone does not directly control fuel costs; while it might attract customers, it could also lead to a decrease in overall margins if not managed alongside usage.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy