Which of the Following Statements Concerning Decisions Regarding Location of Facilities

question 49

Multiple Choice

Which of the following statements concerning decisions regarding location of facilities is false?

• A) Deciding where a company will locate its facilities constitutes a large part of the design of a supply chain.
• B) A basic trade-off here is whether to centralize to gain economies of scale or decentralize to become more responsive by being closer to the customer.
• C) Companies must also consider a host of issues related to the various characteristics of the local area in which the facility may be situated.
• D) All of these statements are true.
• E) None of these statements are true.

---

Definitions:

Bakery

A place where bread, cakes, cookies, and other baked goods are made or sold.

Factory Overhead Cost

Every cost involved in manufacturing that isn't categorized as direct labor or direct materials.

Factory Heating

An operational expense associated with maintaining an appropriate temperature within a manufacturing or production facility, often categorized as a facility overhead cost.

Conversion Costs

The combination of direct labor and manufacturing overhead costs incurred to convert raw materials into finished products.