A Transportation Problem Has a Feasible Solution When

question 41

Multiple Choice

A transportation problem has a feasible solution when:

• A) all of the improvement indices are greater than or equal to zero.
• B) all demand and supply constraints are satisfied.
• C) the number of filled cells is one less than the number of rows plus the number of columns.
• D) all the squares are used.
• E) the solution yields the lowest possible cost.

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Definitions:

Activity Variances

Differences between budgeted amounts and actual amounts incurred due to variations in the level of activity or performance.

Activity Measure

A metric used to gauge the amount of activity or volume, often used in the allocation of overhead costs to products based on their consumption of resources.

Customers Served

The number of customers who receive service from a business within a specified period, indicating the reach or impact of the business's operations.

Activity Variances

The difference between the budgeted costs based on standard activity levels and the actual costs incurred, related to specific business activities.