Data Envelopment Analysis (DEA) Is an LP-Based Methodology in Which

question 68

Multiple Choice

Data Envelopment Analysis (DEA) is an LP-based methodology in which weighted sums of inputs and outputs are calculated and

• A) the constraints capture the maximum effectiveness of each unit.
• B) the objective is to maximize every units output.
• C) the constraints ensure the sum of the weighted outputs is one.
• D) the objective for each unit is to maximize the weighted sum of its outputs.

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Definitions:

LIFO Cost-Flow

A method in inventory valuation where the most recently produced or acquired items are considered sold first, leading to older inventory costs being reported in the financial statements.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor costs.

Beginning Inventory

The value of goods available for sale at the start of an accounting period, critical for calculating cost of goods sold and inventory levels.

LIFO Cost-Flow

An inventory valuation method where the last items of inventory purchased are the first ones to be used or sold, standing for Last In, First Out.