If the Coefficient for Activity 3 in the Objective Function

question 55

Multiple Choice

If the coefficient for Activity 3 in the objective function changes to $30,then the objective function value:

• A)will increase by $70
• B)is $0
• C)will increase by $30
• D)will remain the same
• E)will increase by an unknown amount

---

Definitions:

Net Realizable Value

The estimated selling price in the ordinary course of business, less any costs of completion, disposal, and transportation.

Cost of Goods Sold

The immediate expenses related to manufacturing the products a company sells, which consist of materials and labor.

Inventory

The tangible property held for sale in the normal course of business, or to be used in producing goods or services.

Lower of Cost

An accounting principle that adjusts the value of an inventory or asset to the lower of its historical cost or its market value.