Marginal profit or cost, Managerial Accounting

Assignment Help:

Maximum change in marginal Profit or Cost

Just as we did in studying the permissible ranges for changes in resources, we are also interested in studying the permissible ranges for changes in marginal profits (or costs). We have seen graphically that the objective function coefficients can change within limits without affecting the optimum values of the variables (the optimum value of Z will change, though).

In the present situation, as in the case of resource changes, the objective equation is never used as a pivot equation. Thus, any changes in the coefficients of the objective function will affect only the objective equation in the optimum tableau. This means that such changes can have the effect of making the solution non-optimal. Our goal is to determine the range of variation for the object coefficients (one at a time) for which the current optimum (solution) remains unchanged.


Related Discussions:- Marginal profit or cost

Standard costing in modern environment, Standard costing in modern environm...

Standard costing in modern environment Standard costing has traditionally been associated with labor-intensive operations, but it can be applied to capital-intensive production

Explain the modern control methods, 1. Explain the modern control methods w...

1. Explain the modern control methods with examples. 2. What are the reports produced for performance measurement? Demonstrate.

Alternative performance measures, Alternative performance measures Ther...

Alternative performance measures There are various measures that can be used to measure performance of a decentralized company. The major ones are: •    Return on Investmen

Generates paychecks and management reports, Time sheets are collected in a ...

Time sheets are collected in a batch, and the information is manually keyed into the system. This data is now stored on a magnetic disk. An editing program is run, which verifies w

Explain the growth, Explain the growth, index, sectoral, gilt and money mar...

Explain the growth, index, sectoral, gilt and money market methods? (i) What are the key variations among the open ended and close ended methods? What are the plus and minuses

Illustrate what the traffic can bear pricing, What the traffic can bear pri...

What the traffic can bear pricing Pricing based on what the traffic can bear is not a sophisticated method. It is used by retail traders as well as by some manufacturing firms.

Balanced score card, Balanced Score Card This is a popular approach in ...

Balanced Score Card This is a popular approach in current management thinking which consists of a variety of indicators both financial and non-financial. The balanced scorecard

Financial accounting , Financial Accounting Which is concerned with th...

Financial Accounting Which is concerned with the provision of information to external parties outside the organization? It is the procedure of measuring, classifying, summariz

Innovations of management accounting and control, Implementing management a...

Implementing management accounting and control innovations are often problematic. Provide a brief commentary around the key factors necessary to give such innovations the best chan

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd