For the Products A, B, C, and D, Which of the Following

question 11

Multiple Choice

For the products A, B, C, and D, which of the following could be a linear programming objective function?

• A)Z = 1 A + 2 B + 3 C + 4 D
• B)Z = 1 A + 2 BC + 3 D
• C)Z = 1 A + 2 AB + 3 ABC + 4 ABCD
• D)Z = 1 A + 2 B ÷ C + 3 D
• E)Z = 1 A + 2 B − 1 CD

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Definitions:

Relevant Costs

Future costs that will differ under various alternatives, considered important for making financial decisions.

Special Order

An order for goods or services that is outside the company's normal scope of operations or requires customization to meet the customer's specific requirements.

Excess Capacity

A situation where a company can produce more goods or services than currently demanded by the market, indicating underutilization of resources.

Allocated Fixed Costs

Fixed costs that are assigned or distributed across different departments, products, or activities within a company for budgeting and accounting purposes.