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

question 29

Multiple Choice

In linear programming,what-if analysis is associated with determining the effect of changing:

• 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:

Allocated Cost

Expenses assigned to a specific department, project, or product, based on a formula or allocation method.

Budgeted Amounts

Estimates of revenues, expenses, and other financial activities for a future period, used for planning purposes.

Operating Departments

Divisions within an organization responsible for carrying out the main business activities directly related to generating revenues.

Two-Stage Cost

A method in cost accounting where costs are allocated to cost centers in two stages, first to departments then to products or services.