A Manager Wants to Ensure That He Does Not Exceed

question 24

Multiple Choice

A manager wants to ensure that he does not exceed his budget by more than $1000 in a goal programming problem. If the budget constraint is the third constraint in the goal programming problem which of the following formulas will best ensure that the manager's objective is met?

• A) MIN d₃⁺
• B) d₃− ≥ 1000
• C) d₃⁺ = 1000
• D) d₃⁺ ≤ 1000

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Definitions:

Times Interest Earned Ratio

A financial metric assessing a company's ability to meet its interest obligations from operating earnings.

Inventory Turnover

A measure of how quickly a company sells its stock of goods in a period, calculated by dividing the cost of goods sold by the average inventory level.

Equity Multiplier

A financial leverage ratio that measures the portion of a company's assets that are financed by shareholders' equity.

Debt-to-equity Ratio

The ratio that demonstrates the comparative financing from shareholders' equity and debt for a company's assets.