The Center-Of Gravity Method of Determining a Facility Location

question 7

Multiple Choice

The center-of gravity method of determining a facility location:

• A)Requires that demand be estimated in terms of the dollar sales revenue in each market.
• B)Requires that cost be measured in dollars of transportation cost.
• C)Does not require that qualitative factors be considered in location decisions.
• D)All of these.

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Definitions:

Fair Value

An estimate of the price at which an asset or liability could be traded in an orderly transaction between market participants at the measurement date.

Adjusting Entry

An accounting journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate period.

Trading Portfolio

A collection of financial assets such as stocks, bonds, commodities, currencies, and derivatives held by an investor, primarily for the purpose of short-term speculation.

Stock Transactions

Activities involving the buying, selling, or issuing of shares of stocks in a company, either through exchanges or over-the-counter markets.