The Times-Picayune Is Searching for an Ideal Spotting Station for the Morning

question 12

Multiple Choice

The Times-Picayune is searching for an ideal spotting station for the morning paper. Neighborhoods, their location on an XY grid of the city, and morning volume are shown in the table. What is the location that will minimize the transportation costs for the newspaper? $$\begin{array} { | l | c | c | c | } \hline { \text { Customer } } & \text { Annual Volume } & \text { X-Coordinate } & \text { Y-Coordinate } \\\hline \text { Florida } & 7 & 3 & 7 \\\hline \text { Desire } & 39 & 7 & 5 \\\hline \text { Lafitte } & 245 & 1 & 3 \\\hline \text { Iberville } & 116 & 2 & 5 \\\hline \text { Guste } & 55 & 1 & 6 \\\hline \text { CJ Peete } & 284 & 1 & 4 \\\hline\end{array}$$

• A)Near (3.0, 4.5)
• B)Near (4.5, 5.0)
• C)Near (2.5, 2.5)
• D)Near (1.5, 4.0)

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Definitions:

FIFO

FIFO, or First-In, First-Out, is an inventory valuation method where goods first bought are the first to be sold.

Replacement Cost

The current cost of replacing an asset with a new one of the same kind and quality.

Inventory Turnover

A metric that measures the number of times a company sells and replaces its stock of goods during a certain period.

Lower of Cost

This accounting principle requires that the inventory or stock should be reported at the lower of its cost or the market value.