One of the Objectives of Facility Location Analysis Is to Select

question 46

Multiple Choice

One of the objectives of facility location analysis is to select a site with the lowest total cost. Which of the following are hidden costs that should be included in the analysis?

• A) Becoming less responsive to the customer
• B) Supplier costs
• C) Taxes
• D) Construction costs
• E) Product life cycle costs

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Definitions:

After-Tax Cost

The after-tax cost is the net cost of a transaction, investment, or other financial activity after taking into account the effect of taxes.

Debt-Equity Ratio

Measures a company's financial leverage calculated by dividing its total liabilities by stockholders' equity.

Pre-Tax Cost

The expense or cost incurred by an entity before taxes have been deducted.

Unlevered Cost

The cost of an investment or project assuming no debt is used to finance the investment; reflecting its cost of capital without leverage.