The Weighted-Factor Rating Model, Is a Useful Location Analysis Technique

question 38

True/False

The weighted-factor rating model, is a useful location analysis technique when fixed and variable costs can be determined for each potential location.

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Definitions:

Factory Payroll

Factory Payroll includes the total compensation paid to employees working within the manufacturing operations, directly involved in producing goods.

Direct Materials

Raw materials that can be directly traced to the manufacturing process of a product.

Raw Materials

Basic materials that are used in the initial stages of the production process, before being transformed into finished products.

Inventory Accounts

Inventory accounts are accounting records that track the quantity and value of goods that a company holds for sale in the ordinary course of business.