The Term Range of Optimality Refers to a Constraint's Right-Hand-Side

question 17

True/False

The term range of optimality refers to a constraint's right-hand-side quantity.

---

Definitions:

Senior Management

High-level executives responsible for the overall management and effectiveness of an organization.

Inventory Levels

The quantity of goods and materials on hand at any given time in a company.

Absorption Costing

An accounting method that includes all manufacturing costs—direct materials, direct labor, and both variable and fixed manufacturing overhead—in the cost of a product.

Variable Costing

A cost system that excludes fixed costs from product costs and writes off all fixed costs against income in the year that the costs are incurred. Also called direct costing.