LeokLee Industries Has an Average Accounts Payable Balance of $720,000

question 12

Multiple Choice

LeokLee Industries has an average accounts payable balance of $720,000. Its average annual cost of goods sold is $8,760,000. It receives terms of 1/10 net 30 from its suppliers. Is LeokLee managing its accounts payables well?

• A) Yes, since it, on average, chooses not to take the discount, but pays when payment is due.
• B) Yes, since it, on average, takes the discount, and pays at the end of the discount period.
• C) Yes, since it, on average, stretches payment beyond the due payment date.
• D) No, since it, on average, does not take advantage of the discount period and pays well before payment is due.

Assess the significance of labor productivity and its calculation in the context of location decisions.

Understand the use of Geographic Information Systems (GIS) and demographic data in location decisions.

Understand the role of environmental, regulatory, and economic factors at different geographical levels (global, country, regional/community, site) in location planning.

Comprehend the importance of risks associated with location decisions, including political and legislative risks.