The Total Cost of the Optimal Solution to a Transportation

question 35

Multiple Choice

The total cost of the optimal solution to a transportation problem

• A) is calculated by multiplying the total supply (including any dummy values) by the average cost of the cells
• B) cannot be calculated from the information given
• C) can be calculated based only on the entries in the filled cells of the solution
• D) can be calculated from the original northwest corner solution
• E) is found by multiplying the amounts in each cell by the cost for that cell for each row and then subtracting the products of the amounts in each cell times the cost of each cell for the columns

---

Definitions:

Effective Interest Rate

The actual interest rate on a loan or investment, taking into account the effect of compounding, fees, and other factors, more accurately reflecting the true cost or yield than the nominal rate.

Quoted Interest Rate

The interest rate that a lender provides to a borrower, usually expressed as an annual percentage of the loan amount.

Self-Liquidating

An asset or credit that can cover or repay its own cost through the income it generates.

Inventory

The range of products or goods that are held by a business for the purpose of resale, crucial for operations and financial health.