When Outbound Transportation Costs Are a Dominant Factor, Manufacturing Facilities

question 165

True/False

When outbound transportation costs are a dominant factor, manufacturing facilities should be located close to suppliers and resources.

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Definitions:

Net Fixed Assets

The value of a company's permanent assets less any depreciation that has been accounted for.

Depreciated

The process of allocating the cost of a tangible asset over its useful life, reflecting its decrease in value over time.

Straight-Line

A technique for computing depreciation or amortization that involves uniformly distributing an asset's cost across its lifespan.

Assets

Resources owned by a person or entity that are expected to provide future economic benefits.