Which of the Following Statements Regarding "Proximity" in the Location

question 79

Multiple Choice

Which of the following statements regarding "proximity" in the location decision is FALSE?

• A)Service organizations find that proximity to market is the most critical primary location factor.
• B)Manufacturers want to be near customers when their product is bulky,heavy,or fragile.
• C)Perishability of raw materials is a good reason for manufacturers to locate near the supplier,not the customer.
• D)Reduction in bulk is a good reason for a manufacturer to locate near the supplier.
• E)Clustering among fast food chains occurs because they need to be near their labor supply.

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Definitions:

Fixed Costs

Fixed costs are business expenses that remain constant regardless of changes in production level or sales volume, such as rent, salaries, or insurance.

Budgeting

The process of creating a plan to spend money, outlining an organization's financial and operational goals.

Flexible Budget

A budget that molds itself to fit changes in the volume or intensity of activity.

Other Expenses

Costs not directly related to the production or selling of goods and services, such as interest expenses and loss from foreign exchange.