An Improvement Index Indicates

question 49

Multiple Choice

An improvement index indicates:

• A) whether a method other than the stepping-stone should be used.
• B) whether a method other than the northwest-corner rule should be used.
• C) how much total cost would increase or decrease if a single unit was reallocated to that cell.
• D) whether the transportation cost in the upper left-hand corner of a cell is optimal.
• E) how much total cost would increase or decrease if the largest possible quantity were reallocated to that cell.

---

Definitions:

Receivables

Financial obligations of customers to a company for merchandise or services already supplied or consumed, but for which payment is still outstanding.

Taxes

Mandatory financial charges or levies imposed by a government on individuals, corporations, and other entities to fund government spending and various public expenditures.

Minimum Cash Balance

The least amount of cash a company maintains on hand to meet immediate operational expenses.

Net Cash Flow

The overall flow of currency into and out of an enterprise, critically influencing its liquid assets.