An Auxiliary Binary Variable Is an Additional Binary Variable That

question 61

True/False

An auxiliary binary variable is an additional binary variable that is introduced into a model to represent additional yes-or-no decisions.

---

Definitions:

Job-Order Costing System

A cost accounting system that accumulates costs incurred according to each job or project, suitable for industries where goods or services are produced on a custom basis.

Predetermined Overhead Rate

is calculated before a period begins and is used to allocate manufacturing overhead costs to products based on a chosen activity basis, such as labor hours or machine hours.

Variable Manufacturing Overhead

Indirect production costs that vary with the level of output, such as utilities or indirect labor.

Direct Labor-Hours

The total hours worked by employees directly involved in the manufacturing process, often used as a basis for allocating manufacturing overhead to products.