Conditions That Must Be Satisfied in an Optimization Model Are

question 3

Multiple Choice

Conditions that must be satisfied in an optimization model are

• A)values of the objective function.
• B)constraints.
• C)shadow prices.
• D)intercepts.

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Definitions:

Direct Labour

The workforce engaged in the hands-on manufacturing or processing of products, whose costs are directly assigned to the production cost.

Manufacturing Overhead

All indirect costs associated with the production process, including utilities, maintenance, and factory management expenses, not directly tied to specific units produced.

Variable Product Cost

Costs that vary directly with the volume of production, such as materials and labor directly involved in manufacturing.

Fixed Period Cost

Costs that remain constant for a specific period of time regardless of the level of output or activity.