COST ACCOUNTING
BREAK EVEN POINT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the location might affect the sales of a product
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the location might affect the costs of production
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the location might affect the available supply of labour
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the location might affect the legal form of ownership.
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Detailed explanation-1: -Location plays a huge role in attracting and retaining the best employees, many of whom keep a close eye on where they’re based in order to optimize work-life balance. Good location decisions can significantly boost a company’s long-term performance. Poor ones can cost millions in lost talent, productivity and capital.
Detailed explanation-2: -The seven factors affecting a location decision in operations management are facilities, competition, logistics, labor, community and site, political risk and incentives, according to Reference for Business.
Detailed explanation-3: -Location Decision General Procedure These factors will differ depending on the type of facility but there will usually be only a few important factors that will greatly impact the decisions. These factors include accessibility of raw materials, proximity to consumers, transportation costs, and space requirements.
Detailed explanation-4: -Expert-Verified Answer. Exchange rates are not a qualitative factor in location decisions.