Because the Dual Price Represents the Improvement in the Value

question 62

True/False

Because the dual price represents the improvement in the value of the optimal solution per unit increase in right-hand-side, a dual price cannot be negative.

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Definitions:

Manufacturing Overhead

All costs tied to production that are not direct materials or direct labor.

Indirect Cost

A cost that cannot be easily and conveniently traced to a specified cost object.

Predetermined Overhead Rate

A rate used to apply manufacturing overhead to products or job orders, calculated before the period begins based on estimated costs.

Machine-Hours

A measure of the amount of time that a machine is operated, used as a basis for allocating manufacturing overhead.