In Linear Programming,what-If Analysis Is Associated with Determining the Effect

question 34

Multiple Choice

In linear programming,what-if analysis is associated with determining the effect of changing: I.objective function coefficients.
II) right-hand side values of constraints.
III) decision variable values.

• A)I and II
• B)II and III
• C)I,II,and III
• D)I and III
• E)None of the above.

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Definitions:

Variable Cost

Costs that vary directly with the level of production output or activity, such as materials and labor directly involved in manufacturing.

Fixed Cost

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance, over a specified period.

High-Low Method

A technique in managerial accounting used to estimate fixed and variable costs by analyzing the highest and lowest levels of activity and the associated costs.

Variable Cost

Expenses that change in proportion to the activity of a business such as raw materials and direct labor costs.