Given the Nature of Their Products, Many Service Firms Base

question 89

Multiple Choice

Given the nature of their products, many service firms base their facility location decisions primarily on which of the following?

• A) the possibilities of outsourcing their business operations
• B) proximity to their customers
• C) quality-of-life issues
• D) the availability of natural resources

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Definitions:

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, allowing for more accurate financial planning and analysis.

Materials

Raw inputs or components that are used in the manufacturing process to produce finished goods.

Activity Variance

The difference between the planned activity level and the actual activity level, used in budgeting and costing analyses.

Materials

Raw resources or supplies used in the production of finished goods.