OM 300 Exam 2 Chilcutt Exam Questions with Verified
Answers |2026/2027 Update | A+ Graded
What is the major difference in focus between a location decision in the service sector vs. the
manufacturing sector?
A. There is no difference in focus.
B. The focus in manufacturing is on labor, while the focus in service is on raw materials.
C. The focus in manufacturing is on revenue maximization, while the focus in service is on cost
minimization.
D. The focus in service is on revenue maximization, while the focus in manufacturing is on cost
minimization. - Answer -D. the focus in service is on revenue maximization, while the focus in
manufacturing is on cost minimization
Which of the following statements is NOT true regarding location decisions?
A. Once management is committed to a specific location, many costs become relatively easy to
reduce.
B. Location often has the power to make or break a company's business strategy.
C. Location decisions to support a low-cost strategy require particularly careful consideration.
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, D. Location decisions are important because location has a major impact on the overall risk and
profit of the company. - Answer -A. once management is committed to a specific location, many
costs become relatively easy to reduce.
What term refers to the location of competing companies near each other?
A. centralizing
B. clustering
C. neighboring
D. battling - Answer -B. clustering
Which of the following is NOT an example of tangible costs?
A. labor
B. depreciation
C. public transportation facilities
D. utilities - Answer -C. public transportation facilities
2|Page
Answers |2026/2027 Update | A+ Graded
What is the major difference in focus between a location decision in the service sector vs. the
manufacturing sector?
A. There is no difference in focus.
B. The focus in manufacturing is on labor, while the focus in service is on raw materials.
C. The focus in manufacturing is on revenue maximization, while the focus in service is on cost
minimization.
D. The focus in service is on revenue maximization, while the focus in manufacturing is on cost
minimization. - Answer -D. the focus in service is on revenue maximization, while the focus in
manufacturing is on cost minimization
Which of the following statements is NOT true regarding location decisions?
A. Once management is committed to a specific location, many costs become relatively easy to
reduce.
B. Location often has the power to make or break a company's business strategy.
C. Location decisions to support a low-cost strategy require particularly careful consideration.
1|Page
, D. Location decisions are important because location has a major impact on the overall risk and
profit of the company. - Answer -A. once management is committed to a specific location, many
costs become relatively easy to reduce.
What term refers to the location of competing companies near each other?
A. centralizing
B. clustering
C. neighboring
D. battling - Answer -B. clustering
Which of the following is NOT an example of tangible costs?
A. labor
B. depreciation
C. public transportation facilities
D. utilities - Answer -C. public transportation facilities
2|Page
