Because the Dual Price Represents the Improvement in the Value

question 62

True/False

Because the dual price represents the improvement in the value of the optimal solution per unit increase in right-hand-side, a dual price cannot be negative.

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Definitions:

Journal Entry

A record in accounting that represents a transaction, where each entry includes debits and credits that total an equal amount.

Direct Labor-Hour

A measurement of labor input that represents the amount of time spent by workers directly involved in the production process.

Overapplied Overhead

A situation where the overhead allocated to products exceeds the actual overhead costs incurred, leading to a need for adjustment in cost accounting.

Overapplied Manufacturing Overhead

This occurs when the allocated manufacturing overhead costs are more than the actual overhead costs incurred during a period.