An Optimization Analysis Finds the Optimum Value for a Target

question 23

Multiple Choice

An optimization analysis finds the optimum value for a target variable by repeatedly changing other variables, subject to specified constraints. What can a manager achieve by changing revenue and cost variables in an optimization analysis?

• A) Calculate the highest potential profits
• B) Calculate employee benefit payments
• C) Use this as an extension for a digital dashboard
• D) Create production schedules

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Definitions:

Consolidated Statements

Financial statements that present the financial position and results of operations for a parent company and its subsidiaries as one entity, after removing intercompany transactions.

Financial Statements

Reports that summarize the financial performance and position of a company, including balance sheet, income statement, and cash flow statement.

Financial Affairs

encompasses all activities related to the management of money and investments for an individual or organization.

Operating Influence

A term not commonly used in standard financial or business lexicon and might be confused or conflated with Operating Income, which refers to the profit realized from a business's core operations.