A Linear Programming Application Used to Measure the Relative Efficiency

question 14

Multiple Choice

A linear programming application used to measure the relative efficiency of operating units with the same goals and objectives is

• A)game theory.
• B)asset allocation.
• C)data envelopment analysis.
• D)revenue management.

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Definitions:

Allowance Method

An accounting technique used to estimate and account for doubtful accounts receivable.

Uncollectible Accounts Expense

An expense reported on the income statement, pertaining to the debt owed to a company that is unlikely to be recovered.

Percentage Of Credit Sales

A method used to estimate bad debts expense, based on the percentage of sales made on credit that are expected to be uncollectible.

Allowance Method

An accounting technique used to estimate and account for bad debts, acknowledging that a certain percentage of sales or receivables may not be collected.