Which of the Following Is Not a Primary Factor in Location

question 12

Multiple Choice

Which of the following is not a primary factor in location decisions for manufacturing plants?

• A)proximity to raw materials
• B)proximity to customers
• C)proximity to different modes of transportation
• D)proximity to significant labor pools

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Definitions:

Fixed Overhead

Regular, unchanging costs associated with running a business, such as rent, salaries, and utilities, that do not fluctuate with production volume.

Work in Process

Refers to the cost of the unfinished goods in the manufacturing process including labor, material, and overhead.

Materials Price Variance

The difference between the actual cost of direct materials and the standard cost multiplied by the actual quantity purchased or used.

Raw Materials

Basic materials used in the production or manufacturing process, before being transformed into finished goods.