For What Type of Organization Might the Location Decision Area

question 75

Essay

For what type of organization might the location decision area be the least important of its ten decision areas?
For what type of organization might the location decision be the most important of the ten decision areas?
Discuss; augment your response with examples.

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Definitions:

Cost Drivers

Factors or activities that have a direct impact on the total cost of a product or service.

Direct Labor Hours

The total hours worked by employees directly involved in the production process.

Absorption Cost

A cost accounting method that totals all costs associated with manufacturing a product, including all direct and indirect costs.