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

question 83

Multiple Choice

Which of the following statements regarding the centre-of-gravity method is false?

• A) It is designed to minimize the maximum possible travel distance to any location.
• 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.

---

Definitions:

Office Furniture

Items used in an office setting for the purpose of work, including desks, chairs, filing cabinets, and bookshelves.

Marketable Securities

Liquid financial instruments that can be quickly converted into cash at a reasonable price, such as stocks and bonds.

Days' Sales in Receivables

A financial ratio that measures the average number of days it takes a company to collect payment after a sale has been made.

Accounts Receivable

Accounts receivable represents money owed to a company by its customers for goods or services delivered on credit.