When There Is a Tie Between Two or More Variables

question 15

Multiple Choice

When there is a tie between two or more variables for removal from the simplex tableau,

• A) post-optimality analysis is required.
• B) their dual prices will be equal.
• C) converting the pivot element will break the tie.
• D) a condition of degeneracy is present.

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Definitions:

Average Cost

A method of inventory valuation that determines the cost of goods sold and ending inventory based on the average cost of all similar items in inventory.

Ending Inventory

The price of stock available for transaction at the termination of an accounting interval.

FOB Destination

A shipping term indicating that the seller bears the shipping costs and remains responsible for the goods until they are received and signed for by the purchaser.

FOB Shipping Point

A shipping term indicating that the buyer assumes responsibility for the goods and the shipping costs as soon as the goods leave the seller's premises.