The Transportation Method Is a Linear Programming Technique Where Linearity

question 70

Multiple Choice

The transportation method is a linear programming technique where linearity can be found in which of the following ways?

• A) The cost of goods shipped from any source to any destination is a linear function of quantity shipped.
• B) The total cost associated with a given plan is a linear function of shipping costs.
• C) Cell evaluations assume linear movements through the matrix.
• D) The cost of goods shipped from any source to any destination is a linear function of the cost per unit.

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Definitions:

Physical Inventory

The manual count of all merchandise or stock in a store or warehouse at a particular time.

Estimated Returns Inventory

A reserve of products anticipated to be returned by customers, accounting for potential future merchandise returns.

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts and prepare the company’s books for the next period.

Perpetual Inventory System

An approach to inventory management where updates to inventory records are made in real-time after each purchase, sale, or return transaction.