Converting a Transportation Problem LP from Cost Minimization to Profit

question 41

True/False

Converting a transportation problem LP from cost minimization to profit maximization requires only changing the objective function; the conversion does not affect the constraints.

---

Definitions:

Activity-Based Costing

A costing method that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each.

Single Plantwide Rate

A method of allocating overhead costs using one uniform overhead rate for an entire manufacturing plant.

Single Driver

A factor or variable that singularly influences or causes an effect in another variable or process within a system.

Sequential Method

A method for allocating costs or resources where the process follows a specific order or sequence, often used in complex costing situations.