Question

One of the objectives of facility location analysis is to select a site with the lowest total cost.

Which of the following are hidden costs that should be included in the analysis?

A. Becoming less responsive to the customer
B. Supplier costs
C. Taxes
D. Construction costs
E. Product life cycle costs

Answer 1

The correct answer is E

Step-by-step explanation:

Product life cycle costs is the cost which is linked or associated with the product for the whole life cycle of the product. It traces the revenues or costs of each and every product over the calendar years or periods throughout the whole life cycle.

So, this cost will be included in the analysis as the hidden costs.