Evaluating Location Alternatives by Comparing Their Composite (Weighted-Average) Scores Involves

question 124

Multiple Choice

Evaluating location alternatives by comparing their composite (weighted-average) scores involves

• A) factor-rating analysis
• B) cost-volume analysis
• C) transportation model analysis
• D) linear regression analysis
• E) crossover analysis

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Definitions:

Standard Rate

A predetermined cost for materials, labor, and overhead set for computing variances and budgeting purposes.

Direct Labor Hours

The total hours worked by employees directly involved in manufacturing a product or delivering a service.

Materials Price Variance

The difference between the actual cost of materials and the expected (standard) cost, used to evaluate budgeting efficiency.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard amount expected, multiplied by the standard cost.