Which of the Location Decision Tools Is the Most Objective

question 59

Essay

Which of the location decision tools is the most objective and can be used by the greatest number of decision makers to arrive at the same site decision? Which of the location decision tools would result in the least consistent choice when used by different decision makers? Explain your reasoning.

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Definitions:

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the decrease in value due to wear and tear, decay, or obsolescence.

Current Asset

An asset that is expected to be converted into cash, sold, or consumed within one year or within the operating cycle of the business.

Market Values

The current quoted price at which an asset or a company can be bought or sold.

Book Values

The value of an asset as it appears on a company's balance sheet, calculated as the cost of the asset minus accumulated depreciation.