If a Problem Can Be Modelled as a Separable Program

question 14

Multiple Choice

If a problem can be modelled as a separable program with three line segments, how many decision variables is it likely to have?

• A) 1
• B) 2
• C) 3
• D) Only 1 or 2
• E) 1, 2, or 3

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Definitions:

Zero-based Budgeting

A budgeting method that starts from a "zero base" every period, requiring all expenses to be justified for each new period, as opposed to being carried forward.

Top-Down Budgeting

A budgeting approach where the budget is created by top-level management and then distributed to lower levels for implementation.

Bottom-Up Budgeting

A budgeting process where the budget is prepared with the input and estimates coming from lower-level staff, before being aggregated and approved at higher levels.

Operating Budgets

A financial plan that estimates the expected income and expenses for a specific period in the future, often used to guide business activities.