Question $14$

What assumptions underpin linear programming $($LP$)$ models?

All costs are divided into varlable and semi$-$variable components, and linear relationships exist between certain variables

All costs be divided into fixed, semi$-$fixed and variable components and linear elationshipsexist between certain variables.

All costs be divided into fixed, semi$-$variable and varlable components, and linear relationships exist between certain variables.

All costs can be divided into fixed and variable components, and linear relationships exist between certain variables.

Question $15$

What statement below best describes the major flaw in the traditional allocation of overheads, according to its critic?

It impairs the ability to assign fixed costs accurately to products. resulting in cost prices reflecting inaccurate unit costs.

The traditional system is based on the principle that produets are created from activities.

It darnages the ability to assign fixed costs accurately to products, resulting in cost prices reflecting accurate unit costs

Fixed overheads directly relate to production volume but vary with other factors related to production volume: