What Is the Objective Function

question 82

Multiple Choice

What is the objective function?

• A)$4.00 A + $1.00 B = Z
• B)$0.25 A + $1.00 B = Z
• C)$1.00 A + $4.00 B = Z
• D)$1.00 A + $1.00 B = Z
• E)$0.25 A + $0.50 B = Z

---

Definitions:

Selling Price

The amount of money for which a product or service is sold to the customer.

Plantwide Predetermined Rate

A single overhead absorption rate calculated for an entire factory, used to allocate overhead costs to products.

Machine-Hours

A measure of the amount of time a machine is operated, used in the calculation of manufacturing costs and allocation.

Manufacturing Cost

The total cost incurred by a company to produce a specific quantity of a product, including materials, labor, and overhead.