Modeling a Fixed Cost Problem as an Integer Linear Program

question 32

Multiple Choice

Modeling a fixed cost problem as an integer linear program requires

• A)adding the fixed costs to the corresponding variable costs in the objective function.
• B)using 0-1 variables.
• C)using multiple-choice constraints.
• D)using LP Relaxation.

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Definitions:

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the standard cost allocated for the actual production achieved.

Labor Rate Variance

The difference between the actual cost of direct labor and the expected (or budgeted) cost, based on standard rates and actual hours worked.

Materials Price Variance

The difference between the actual cost of materials purchased and the expected (or standard) cost, used to assess cost management performance in procurement.

Milk Chocolate

A type of chocolate that includes milk powder or condensed milk as a main ingredient, giving it a smooth, rich flavor and creamy texture.