The Combination of Decision Variables Optimizing a Linear Programming Problem

question 12

Multiple Choice

The combination of decision variables optimizing a linear programming problem, occurs at:

• A) a point where the objective function contour touches the feasible region.
• B) a point in the interior of the feasible region.
• C) a point outside the feasible region.
• D) a point where the constraint functions intersects the objective function.
• E) a point which satisfies at least one nonbinding constraint.

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Definitions:

Cash Realizable Value

The amount of money that can be expected to be received from receivables or other assets, after accounting for any discounts or allowances.

Allowance Method

An accounting technique that estimates and deducts accounts receivable deemed uncollectible from total accounts receivable.

Allowance for Doubtful Accounts

A contra-asset account designed to anticipate the amount of accounts receivable that might be uncollectible.

Bad Debt Expense

An accounting expense recognized when a company can no longer recover a debt that it has issued.