Which of the following statements regarding the center of gravity method is false

CHAPTER 8: LOCATION STRATEGIES

TRUE/FALSE

1.FedEx chose Memphis, Tennessee, for its central location, or "hub," primarily because of the

incentives offered by the city of Memphis and the state of Tennessee.

False (Global company profile, easy)

2.Generally, the objective of the location decision is to maximize the firm's profit.

False (The strategic importance of location, easy)

3.Lists have been developed that rank countries on issues such as “competitiveness” and

“corruption.”

True (Factors that affect location decisions, easy)

4.When innovation replaces cost as a firm's focus for location decisions, the presence of other state-

of-the-art firms is a plus, not a negative, for the firm's competitiveness.

True (The strategic importance of location, moderate)

5.The ratio of labor cost per day to productivity, in units per day, is the labor cost per unit.

True (Factors that affect location decisions, moderate)

6.For a location decision, labor productivity may be important in isolation, but low wage rates are a

more important criterion.

False (Factors that affect location decisions, moderate)

7.Unfavorable exchange rates can offset other savings in a location decision.

True (Factors that affect location decisions, moderate)

8. An example of an intangible cost, as it relates to location decisions, is the quality of education.

True (Factors that affect location decisions, moderate)

9.In location decisions, intangible costs are easier to measure than tangible costs.

False (Factors that affect location decisions, moderate)

10.Location decisions are based on many things, including costs, revenues, incentives, attitudes, and

intangibles, but not on ethical considerations.

False (Factors that influence location decisions, easy) {AACSB: Ethical Reasoning}

11.Manufacturers may want to locate close to their customers, if the transportation of finished goods is

expensive or difficult.

True (Factors that affect location decisions, moderate)

12.One reason for a firm locating near its competitors is the presence of a major resource it needs.

True (Factors that affect location decisions, moderate)

13.The graphic approach to location break-even analysis displays the range of volume over which

each location is preferable.

True (Methods of evaluating location alternatives, moderate)

189

Which of the following statements regarding the center-of-gravity method is false? a) Center of gravity always lies outside the body. b) Center of gravity coincides with the center of mass in a uniform gravitational field. c) Center of gravity is often confused with the center of mass. |d) Center of gravity is the point at which the whole mass of the object acts.

Solution:

The center of gravity is an imaginary point in a body of matter, where the whole mass of the body is supposed to be concentrated. 

The center of gravity is useful in designing static structures like tall buildings and bridges. In a uniform gravitational field, the center of gravity becomes equal to the center of mass of the body. But if the gravitational field is not uniform, the center of gravity should not be confused with the center of mass.

Importance of center of gravity:

1. The center of gravity heavily simplifies calculations involving gravitation and dynamics to be able to treat the mass of an object as if it is concentrated at one point.
2. Helps in understanding the basic concepts of balancing.
3. It helps in understanding the parameter of the automobile industry.
4. COG is an essential parameter to determine the flight characteristics of an object.

Thus, the correct option for the given problem is option a).

Summary:

The correct option for the given problem is option a)

What is center of gravity method?

Which of the following is a location analysis technique typically employed by a service organization?

Which term refers to the location of competing companies near each other?