One of the Objectives of Facility Location Analysis Is to Select

question 48

Multiple Choice

One of the objectives of facility location analysis is to select a site with the lowest total cost. Which of the following costs should not be included in the analysis?

• A) Outbound distribution costs
• B) Incidental costs
• C) Energy costs
• D) Hidden costs
• E) Taxes

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Definitions:

Current Liabilities

Short-term financial obligations that are due within one year and are listed on a company's balance sheet.

Common-size Percent

A financial analysis tool that expresses each item in a financial statement as a percentage of a base amount, facilitating comparison across different periods or companies.

Total Assets

The sum of all resources owned by a company, valued in monetary terms, which include buildings, equipment, inventory, and cash.

Cash

A form of liquid asset that includes currency and other assets that are readily convertible to known amounts of cash and can be used to settle debts, purchases, or other transactions.