The Centroid Method for Plant Location Uses Which of the Following

question 2

Multiple Choice

The centroid method for plant location uses which of the following data?

• A) Volume of goods to be shipped between existing points
• B) Inbound transportation costs
• C) Transport times between facilities
• D) Correlation matrix of existing facilities
• E) Probabilities and payoffs

---

Definitions:

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the standard variable overhead allocated to produced goods, based on the standard variable overhead rate.

Direct Materials Purchases Variance

The difference between the actual cost of direct material purchases and the expected (or standard) cost, adjusted for volume purchased.

Standard Costs

Predetermined costs for materials, labor, and overhead used in budgeting and assessing performance.

Labor Efficiency Variance

A measure of the difference between the actual hours worked by employees and the standard hours expected to complete a task, used to assess labor productivity.