One Direct Way to Lower Annual Operating Costs Is to Locate

question 92

Multiple Choice

One direct way to lower annual operating costs is to locate in a state where ________.

• A)there is an attractive business climate
• B)the labor market is highly competitive
• C)taxes and regulatory costs are lowest
• D)the key markets are relatively accessible

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Definitions:

Cost of Goods Sold

Direct costs attributable to the production of the goods sold by a company, including materials and labor costs.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations, calculated as current assets divided by current liabilities.

Financial Information

Data that pertains to the financial status, performance, and changes in the economic resources of an entity.

Debt to Equity

A financial metric that shows the comparative amount of debt and shareholders' equity utilized to fund a company's assets.