An Objective Function

question 39

Multiple Choice

An objective function

• A) shows where the break-even point is.
• B) describes how much of a resource can be used.
• C) can represent costs or profits.
• D) describes something to be maximized.

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Definitions:

AFN Equation

Stands for Additional Funds Needed, a financial formula used to determine the additional financing a company will require in the future, based on its growth plans and financial policies.

Sales Growth Rate

The increase in sales over a specific period, typically expressed as a percentage, highlighting the company's ability to expand its operations and revenue.

Full Capacity Sales

The maximum potential sales revenue a company can achieve with its current resources and facilities, assuming full efficiency.

Net Income

A measure of a company's profitability, calculated as revenue minus expenses, taxes, and costs.