Constraints, Managerial Accounting

Assignment Help:

Constraints

1) A constraint of the type ≤ (≥) can be converted to an equation by adding a slack variable to (subtracting a surplus variable form) the left side of the constraint.

For illustration, in the constraint: XI + 2X2 ≤ 6 we add a slack SI ≥ 0 to the left side to obtain the equation: XI + 2X2 + SI = 6,     SI ≥ 0.

If the constraint represents the limit on the usage of a resource, SI will represent the slack or unused amount of the resource.

After that consider the constraint: 3XI + 2X2 - 3X3 ≥ 5, we subtract a surplus variable S2 ≥ 0 from the left side to obtain the equation.
3XI + 2X2 - 3X3 - S2 = 5, S2 ≥ 0

2) The right side of an equation can always be made non-negative by multiplying both sides by -1.

For illustration, 2XI + 3X2 - 7X3 = -5 is mathematically equivalent to -2XI - 3X2 + 7X3 = +5.

3) The direction of an equation is reversed when both sides are multiplied by -1. For illustration, whereas 2 < 4, -2 > -4. Thus the inequality 2XI - X2 ≤-5 can be replaced by -2XI + X2 ≥ 5.


Related Discussions:- Constraints

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

What is management accounting, Question 1 The following items are found in...

Question 1 The following items are found in the trial balance of M/s Sharada Enterprise on 31st December, 2000. Sundry Debtors

Explain about customer oriented pricing, Customer oriented or perceived val...

Customer oriented or perceived value pricing There is an increasing trend to price the product on the basis of the customer's perception of its value. This method takes into ac

Steps of choosing an accounting based performance, Steps of choosing an acc...

Steps of choosing an accounting based performance measure Consider the overall goal of the organization as a whole. It is important to choose a measure of accomplishment that r

Explain the scope of cost accounting, Explain the Scope of cost accounting ...

Explain the Scope of cost accounting Scope of cost accounting: the scope of cost accounting is very wide and includes the following: 1 cost ascertainment: it deals with t

Jit and management accounting , JIT and Management Accounting Manageme...

JIT and Management Accounting Management accountants in many organizations have been criticized because of their failure to change their managing accounting system to reflect

Management accounting, Management Accounting An accounting discipline c...

Management Accounting An accounting discipline concerned with the use of financial information. It used to relevant information by managers and other decision makers inside a s

Cost estimation, engineering method of cost estimation

engineering method of cost estimation

Illustrate the important steps of budgetary control, Important steps of bud...

Important steps of budgetary control There are certain steps which are essential for the successful implementation of a budgetary control system. They are as follows: 1) Or

Explain about cost centre, Explain about Cost centre: Meaning & defini...

Explain about Cost centre: Meaning & definition: cost centre is defined as a location, person or item of equipment (or group of them) in respect which costs may be ascertaine

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