The Dual Price for a Constraint That Compares Funds Used

question 55

Multiple Choice

The dual price for a constraint that compares funds used with funds available is .058. This means that

• A) the cost of additional funds is 5.8%.
• B) if more funds can be obtained at a rate of 5.5%, some should be.
• C) no more funds are needed.
• D) the objective was to minimize.

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Definitions:

State Unemployment Tax

A tax levied by state governments on businesses to fund unemployment insurance benefits for workers who have lost their jobs.

Employee Withholding

The portion of an employee's wages deducted by the employer for taxes, social security, and other benefits, and paid directly to the government.

Warranty Expense

Costs a company incurs due to servicing or replacing products under warranty.