A Major Problem in a Plant Location Decision Based on the Factor-Rating

question 41

True/False

A major problem in a plant location decision based on the factor-rating system is that simple point-rating schemes do not account for the wide variance of costs that may occur within each factor used in the analysis.

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Definitions:

Inflation Reduction

Efforts or policies aimed at slowing the rate at which prices for goods and services rise, thereby preserving purchasing power over time.

Stable Inflation

A situation in which the rate of inflation is low and changes very slowly over time.

Marginal Tax Rate

The amount by which taxes increase from an additional dollar of income.

Interest Income

Earnings received from investments in financial assets like savings accounts, certificates of deposit, or bonds, typically expressed as a percentage of the principal.