SCMA 331 CERTIFICATION SCRIPT 2026
QUESTIONS WITH SOLUTIONS GRADED A+
◍ The reason fast food restaurants often are found in close proximity to each
other is:A) they enjoy competition.B) location clustering near high traffic
flows.C) low cost.D) availability of skilled labor.E) all of the above.
Answer: B) location clustering near high traffic flows
◍ What is an approach to location analysis that includes both qualitative and
quantitative considerations?A) locational cost-volume analysisB)
factor-rating methodC) transportation modelD) center-of-gravity methodE)
make-or-buy analysis.
Answer: B) factor-rating method
◍ The transportation model, when applied to location analysis:A) minimizes
total fixed costs.B) minimizes total production and transportation costs.C)
minimizes total transportation costs.D) maximizes revenues.E) minimizes
the movement of goods.
Answer: B) minimizes total production and transportation costs.
◍ Traffic counts and purchasing power analysis of drawing area are techniques
associated with:A) locational cost-volume analysis.B) a manufacturing
location decision.C) a retail or professional service location decision.D) the
factor-rating method.E) the transportation model.
Answer: C) a retail or professional service location decision.
◍ As described in the book Aerotropolis, nowadays location decisions
worldwide are often being based on what?A) riversB) rail hubsC) interstate
highwaysD) portsE) airports.
Answer: E) airports
◍ Evaluating location alternatives by comparing their composite
(weighted-average) scores involves which of the following?A) factor-rating
, analysisB) cost-volume analysisC) transportation model analysisD) linear
regression analysisE) crossover analysis.
Answer: A) factor-rating analysis
◍ Which of these factors would be considered when making a location
decision at the site level?A) government rules, attitudes, stability,
incentivesB) cultural and economic issuesC) zoning regulationsD) cost and
availability of utilitiesE) proximity to raw materials and customers.
Answer: C) zoning regulations
◍ Lists have been developed that rank countries on issues such as
"competitiveness" and "corruption.".
Answer: T
◍ Service firms choose locations based, in part, on the revenue potential of a
site..
Answer: T
◍ A location decision for a traditional department store (e.g., Macy's) would
tend to have what type of focus?A) cost focusB) labor focusC) revenue
focusD) environmental focusE) education focus.
Answer: C) revenue focus
◍ Currency risk is based on what assumption?A) Firms that do not
continuously innovate will lose market share.B) Values of foreign
currencies continually rise and fall in most countries.C) Changing product
lines by reacting to every current trend may alienate the customer base.D)
The value of one dollar today is greater than the value of one dollar to be
received one year from now.E) The
U. S. stock market fluctuates daily.
Answer: B) Values of foreign currencies continually rise and fall in most
countries.
◍ A location decision for an appliance manufacturer would tend to have what
type of focus?A) cost focusB) focus on finding very highly skilled
techniciansC) revenue focusD) environmental focusE) education focus.
QUESTIONS WITH SOLUTIONS GRADED A+
◍ The reason fast food restaurants often are found in close proximity to each
other is:A) they enjoy competition.B) location clustering near high traffic
flows.C) low cost.D) availability of skilled labor.E) all of the above.
Answer: B) location clustering near high traffic flows
◍ What is an approach to location analysis that includes both qualitative and
quantitative considerations?A) locational cost-volume analysisB)
factor-rating methodC) transportation modelD) center-of-gravity methodE)
make-or-buy analysis.
Answer: B) factor-rating method
◍ The transportation model, when applied to location analysis:A) minimizes
total fixed costs.B) minimizes total production and transportation costs.C)
minimizes total transportation costs.D) maximizes revenues.E) minimizes
the movement of goods.
Answer: B) minimizes total production and transportation costs.
◍ Traffic counts and purchasing power analysis of drawing area are techniques
associated with:A) locational cost-volume analysis.B) a manufacturing
location decision.C) a retail or professional service location decision.D) the
factor-rating method.E) the transportation model.
Answer: C) a retail or professional service location decision.
◍ As described in the book Aerotropolis, nowadays location decisions
worldwide are often being based on what?A) riversB) rail hubsC) interstate
highwaysD) portsE) airports.
Answer: E) airports
◍ Evaluating location alternatives by comparing their composite
(weighted-average) scores involves which of the following?A) factor-rating
, analysisB) cost-volume analysisC) transportation model analysisD) linear
regression analysisE) crossover analysis.
Answer: A) factor-rating analysis
◍ Which of these factors would be considered when making a location
decision at the site level?A) government rules, attitudes, stability,
incentivesB) cultural and economic issuesC) zoning regulationsD) cost and
availability of utilitiesE) proximity to raw materials and customers.
Answer: C) zoning regulations
◍ Lists have been developed that rank countries on issues such as
"competitiveness" and "corruption.".
Answer: T
◍ Service firms choose locations based, in part, on the revenue potential of a
site..
Answer: T
◍ A location decision for a traditional department store (e.g., Macy's) would
tend to have what type of focus?A) cost focusB) labor focusC) revenue
focusD) environmental focusE) education focus.
Answer: C) revenue focus
◍ Currency risk is based on what assumption?A) Firms that do not
continuously innovate will lose market share.B) Values of foreign
currencies continually rise and fall in most countries.C) Changing product
lines by reacting to every current trend may alienate the customer base.D)
The value of one dollar today is greater than the value of one dollar to be
received one year from now.E) The
U. S. stock market fluctuates daily.
Answer: B) Values of foreign currencies continually rise and fall in most
countries.
◍ A location decision for an appliance manufacturer would tend to have what
type of focus?A) cost focusB) focus on finding very highly skilled
techniciansC) revenue focusD) environmental focusE) education focus.
