Which of the Following Statements Regarding the Center-Of-Gravity Method Is

question 9

Multiple Choice

Which of the following statements regarding the center-of-gravity method is FALSE?

• A) It is designed to minimize the maximum possible travel distance to any of the locations.
• B) The optimal x- and y-coordinates are calculated separately.
• C) The optimal solution is unconstrained, so it could suggest a location in the middle of a body of water.
• D) The weights used are the quantity of goods moved to or from each location.
• E) The origin of the coordinate system and the scale used are arbitrary, just as long as the relative distances are correctly represented.

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Definitions:

Double-Declining-Balance Method

An accelerated depreciation method that expenses more of an asset’s cost closer to the beginning of its usable life.

Depreciable Asset Accounting

The accounting process that involves allocating the cost of a tangible asset over its useful life.

Depreciation Expense

The portion of the total cost of a depreciable asset that is allocated as an expense to the income statement in a given period.

Residual Value

The estimated value of a leased asset at the end of the lease term, or the expected value of an asset after its useful life ends.