Use the Data Shown Below to Answer the Following Question(s)

question 50

Multiple Choice

Use the data shown below to answer the following question(s) .
Malone Inc.has identified five potential new processes; however,the firm is constrained by its available budget and human resources.Each process is expected to generate a return (given by the net present value) but requires a fixed amount of cash and personnel.Because the resources are limited,all processes cannot be selected.Processes cannot be partially completed; thus,either the process must be undertaken completely or not at all.The data are given in the table below.If a process is selected,it generates the full value of the expected return and requires the full amount of cash and personnel shown in the table.Define X_i = 1 if process i is selected,and 0 otherwise.
-Determine the expression that explains the personnel limitation.

• A)5X₁ + 3X₂ + 3X₃ + 5X₄ + 2X₅ ≥ 12
• B)5X₁+ 3X₂ + 3X₅ ≥ 12
• C)5X₁+ 3X₂ + 3X₅ ≤ 12
• D)5X₁ + 3X₂ + 2X₃ + 5X₄ + 3X₅ ≤ 12

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Definitions:

Costing Accuracy

This refers to the preciseness and reliability of costing methods used to estimate or determine the actual costs of production, operations, or projects.

Activity-Based Costing Rates

Rates determined by dividing specific overhead costs by the cost drivers associated with those costs, enabling more accurate product cost assessments.

Cost Drivers

Factors that cause the cost of an activity or operation to change.

Unit-Level Drivers

Factors that directly cause the cost of a specific activity, usually proportional to the volume of units produced or serviced.