Least cost factor plays the most dominant role for the ideal location of an industry.
The reasons are
(i) Cost of obtaining raw material at the factory site should be minimum i.e. raw materials should be available nearby or may be transported cheaply to the industrial location.
(ii) The factory should be so located that the
manufactured products may easily be distributed or transported to the market at the least cost by rail, road or water transport.
(iii) Cost of manufacturing at the factory site should be low. This means that trained experienced labour should be readily available locally or in nearby areas, electric power supply should be readily available and cheap. Also, land for locating the industry should be available cheaply.