For the Basic Feasible Solution to Remain Optimal

question 12

Multiple Choice

For the basic feasible solution to remain optimal,

• A)all c_j − z_j values must remain ≤ 0.
• B)no objective function coefficients are allowed to change.
• C)the value of the objective function must not change.
• D)All of these are correct.

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Definitions:

Product Costs

The total of direct materials, direct labor, and manufacturing overhead allotted to a product, representing the cost to produce goods.

Volume Variance

The difference between the budgeted fixed overhead at 100% of normal capacity and the standard fixed overhead for the actual production achieved during the period.

Normal Capacity

The average level of operational output that a company can sustain with its current resources, over a specific period and under normal conditions.

Nonmanufacturing Activities

Business operations and activities that do not involve the production of goods, such as sales, marketing, and service delivery.