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Which of the following statements is NOT true regarding location​ decisions?
A. Location decisions are important because location has a major impact on the overall risk and profit of the company.
B. Once management is committed to a specific​ location, many costs become relatively easy to reduce.
C. Location often has the power to make or break a​ company's business strategy.
D. Location decisions to support a​ low-cost strategy require particularly careful consideration.

Respuesta :

Answer:

B. Once management is committed to a specific​ location, many costs become relatively easy to reduce.

Explanation:

  • As a location decision is essential and a specific decision taken by the company it has to be focused on its decision and does not need to draw any conclusion as a location decision made in the past cannot be easily overcome or reduced depending on the choices of the firm or the location availability of the resources.
  • The location adds a cost to the company and is evaluated on the basis of the internal policy and thus is costly to undo.  A location often serves as a point of maximum profit or the operations performed by a firm like the effects form the land cost, labor costs, energy costs, and transport costs, etc.

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