A Linear Programming Problem Where the Objective Is to Find

question 43

Multiple Choice

A linear programming problem where the objective is to find the best mix of ingredients for a product to meet certain specifications is called:

• A) a resource-allocation problem.
• B) a blending problem.
• C) a cost-benefit tradeoff problem.
• D) a mixture problem.
• E) None of the answer choices are correct.

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Definitions:

Future Cash Flows

The projected cash receipts and payments a business expects over a period in the future, important for investment and valuation purposes.

Net Income

Profit of a company after all expenses and taxes have been subtracted from total revenue.

Matching Principle

An accounting principle that dictates that expenses should be recognized in the period in which the related revenues are earned, helping to ensure that financial statements are accurate.

Expenses

The outflows or using up of assets as part of operations of a business to generate revenue.