Which of the Following Statements About Location Decisions Is NOT

question 38

Multiple Choice

Which of the following statements about location decisions is NOT true?

• A) The importance of the initial decision to locate a traditional physical building is underscored by both the high cost of such a place and the hassle of pulling up stakes and moving an established business.
• B) The choice of a location for a physical facility is rarely a one-time decision.
• C) The choice of a good location is much more vital to some businesses than to others.
• D) Regardless of the specific resources involved, every location decision should be based on certain fundamental principles that can guide the process.

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Definitions:

LIFO

A method of inventory valuation where the last items added to inventory are the first ones to be used or sold, standing for Last In, First Out.

Weighted-Average

A calculation method that takes into account the varying degrees of importance of the numbers in a dataset.

Gross Profit Method

A method used to determine the value of the ending inventory using a predetermined gross profit rate. This method can be used to determine value of ending inventory if a loss from fire occurs.

Gross Profit

The financial metric calculated by subtracting cost of goods sold from total net sales, reflecting the efficiency of a company in managing its manufacturing costs.