You are faced with a linear programming objective function of:
Max P = $20X + $30Y
and constraints of:
3X + 4Y = 24 (Constraint A)
5X - Y = 18 (Constraint B)
You discover that the shadow price for Constraint A is 7.5 and the shadow price for Constraint B is 0. Which of these statements is TRUE?
A) You can change quantities of X and Y at no cost for Constraint B.
B) For every additional unit of the objective function you create, you lose 0 units of B.
C) For every additional unit of the objective function you create, the price of A rises by $7.50.
D) The most you would want to pay for an additional unit of A would be $7.50.
D
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Under a job order system of cost accounting, Cost of Goods Sold is debited and Finished Goods is credited for a:
a. Transfer of materials to the factory. b. Shipment of completed goods to the customer. c. Transfer of completed production to the finished goods storeroom. d. Purchase of goods on account.
Unearned Revenue was $2,400 at the end of May and $3,000 at the end of June. Service Revenue was $10,600 for the month of June. How much cash was received for services provided during June?
a. $10,000 b. $5,200 c. $11,200 d. $16,000
The business entity assumption means that a business is accounted for separately from other business entities, including its owner or owners.
Answer the following statement true (T) or false (F)
Prices are generally more ________ in the early stages of the product life cycle.
Fill in the blank(s) with the appropriate word(s).