The Method for Evaluating Location Alternatives That Minimizes Shipping Costs

question 20

Multiple Choice

The method for evaluating location alternatives that minimizes shipping costs between multiple sending and receiving locations is

• A)locational cost-profit-volume analysis.
• B)the transportation model.
• C)factor rating.
• D)geographic information system (GIS)analysis.
• E)the center-of-gravity method.

---

Definitions:

Equity Multiplier

A financial leverage ratio that measures the portion of a company's assets that are financed by shareholder's equity.

Sustainable Growth Rate

The maximum rate at which a company can grow its sales, earnings, and dividends without increasing its financial leverage or debt proportion.

Dividend Payout Ratio

The proportion of net income a firm pays out to its shareholders in the form of dividends.