When the Allowable Increase or Allowable Decrease for the Objective

question 48

Multiple Choice

When the allowable increase or allowable decrease for the objective function coefficient of one or more variables is zero it indicates (in the absence of degeneracy) that

• A) the problem is infeasible.
• B) alternate optimal solutions exist.
• C) there is only one optimal solution.
• D) no optimal solution can be found.

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Definitions:

Direct Materials

The raw materials directly used in the production of a product, easily traceable to the finished good.

Materials Cost

The total expense incurred from acquiring raw materials used in the production of goods.

Average Cost Method

An inventory costing method where the cost of goods sold and ending inventory are determined by calculating the average cost of all inventory items.

Equivalent Unit

A measure used in cost accounting to express the amount of work done on incomplete products in terms of complete units of output.