Since refined sugar has a low value-to-weight ratio, even if it is shipped halfway around the world, the transportation costs would account for a very small percentage of total costs

Indicate whether the statement is true or false.

FALSE
A product's value-to-weight ratio affects location decisions because of its influence on transportation costs. Refined sugar, certain bulk chemicals, paint, and petroleum products all have low value-to-weight ratios; they are relatively inexpensive products that weigh a lot. Accordingly, when they are shipped long distances, transportation costs account for a large percentage of total costs

Business

You might also like to view...

All of the following would flow through as a loss to limited partners EXCEPT:

A) interest payments on recourse debt. B) accelerated depreciation. C) depletion. D) principal repayment on recourse debt.

Business

Acme Corporation surveys its consumers to determine how they view the similarities and dissimilarities among relevant product attributes for a set of competing brands. This is an example of:

a. pricing strategy research. b. distribution strategy research. c. positioning research. d. market segmentation research. e. retailing research.

Business