The least-cost method, Managerial Accounting

The least-cost method

The process is described as follows: Assign as much as possible to the variable with the least unit cost in the whole tableau. (Ties are broken randomly). Cross out the fulfilled row or column. (As in the northwest-corner technique when both column and row are satisfied simultaneously, only one might be crossed out). After adjusting the supply and demand for all uncrossed-out rows and columns, repeat the process by assigning as much as possible to the variable with the smallest uncrossed-out unit cost. The process is complete whenever exactly one row or one column is left uncrossed-out.

1521_box1.jpg



The total cost related with this answer is Shs 335 which is better (smaller) than the one provided by the northwest-corner method.

 

1051_box2.jpg

Posted Date: 12/7/2012 7:33:37 AM | Location : United States







Related Discussions:- The least-cost method, Assignment Help, Ask Question on The least-cost method, Get Answer, Expert's Help, The least-cost method Discussions

Write discussion on The least-cost method
Your posts are moderated
Related Questions
The emerging financial scenario has made a fierce competition among the companies to raise funds by innovative financial products by the capital and or money markets. Moreover sour

Explain Management accounting Meaning & definition: Management accounting is comprises of two words, Management and accounting. It is the study of managerial aspect of the ac

Let a quarry's cost function of producing Q tons of stone per hour be given by TC = Q 3 - 10Q 2 + 40Q + 25, so that marginal cost function is MC= 3Q 2 - 20Q + 40. (i) Find th

Define the modes of Hybrid Instrument? 1. What are a variety of investment risks. Describe them. 2. Define the modes of Hybrid Instruments and clarify their features.

Cash to debt service ratio  Cash to debt service ratio also known as debt cash flow coverage ratio is an improvement over the interest coverage ratio and is calculated. The

Explain the Features of budgetary control From the definition the following features of budgets control emerge: 1) Establishment of budgets: budgets are prepared for each

Quick ratio Meaning: this ratio establishes a relationship among quick assets and current liabilities Objective: the objective of commuting this ratio is to calculate th

when assessing Market Value of common stock, is the "market value" the market value when the company sold the stock or the current market value?


Transfer Pricing Methods Transfer pricing methods are concerned with the alternative means by which a transfer price can be set and its impact on organizations gauged. Emmanuel