Question

What is not a criterion that influences manufacturing plant or warehouse facility location decisions?

Answer 1

Answer:

Historical cost

Explanation:

Historical cost is a cost recorded in a company's book at the original value it was purchased, thus not considered as a factor that influences manufacturing location. Example of historical cost is original value of an asset (like the land where the warehouse facility will be located)which is recorded in the company's records.

The following are criterion that influences manufacturing plant or warehouse facility location decisions;

- Labour quality: The quality of labour in an area determines if an industry will be established in that area.

-Business climate: Another factor to be considered is the business climate. Is the location good enough for business activities?

-Proximity to consumers: Owners of companies also consider how close their firm would be to the buyers before they choose certain location for the establishment of their business.

-Country's infrastructure: Some foreign firms consider if the local country they want to invest in has necessary infrastructure before they make their decisions.

-Others are Suppliers, Tariffs and customs duty etc.