Which of the Following Is Not True About Slack Variables

question 98

Multiple Choice

Which of the following is not true about slack variables in a simplex tableau?

• A)They are used to convert ≤ constraint inequalities to equations.
• B)They represent unused resources.
• C)They require the addition of an artificial variable.
• D)They may represent machine time,labor hours,or warehouse space.
• E)They yield no profit.

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Definitions:

Total Fixed Costs

The sum of all business expenses that remain constant regardless of production volume, such as rent, salaries, and insurance.

Variable Costs

Expenses that change in proportion to the activity of a business.

Economic Order Quantity

Orders replacements whenever inventory level falls to a predetermined point.

Inventory Level

The quantity of goods or materials held in stock by a business at a specific point in time.