Site-Related Factors That Should Be Taken into Consideration When Selecting

question 37

Multiple Choice

Site-related factors that should be taken into consideration when selecting a manufacturing location include

• A)future advertising costs.
• B)access to key suppliers.
• C)raw material availability.
• D)customer accessibility.

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Definitions:

Variable Cost

Costs that vary directly with the level of production or output, increasing as production increases and decreasing as production decreases.

Net Operating Income

A company's total pre-tax profit, derived from its normal business operations, excluding non-operating income and expenses.

Special Order

Special Order refers to a one-time or unique request by a customer for a product or service that may differ from the standard offerings of a company.

Net Operating Income

A measure of a company's profitability from its core business operations, excluding expenses and revenues from investments and financing.