Economic Themes (2011) 49 (3) 5, 415-432

MANAGEMENT ACCOUNTING INFORMATION SUPPORT IN OPTIMIZING PRODUCT MIX USING LINEAR PROGRAMMING


Slobodan Malinić, Vesna Janjić, Mirjana Todorović, Dejan Jovanović

Abstract: Adoption of business and financial decisions, as a key activity of company’s management and multi-disciplinary process, includes several interrelated stages and requires management to dispose of relevant and reliable information. The most common problem facing the management of company is the selection of production-sales program that enables the realization of maximum profit. When choosing the optimal production-sales mix one should take into consideration a number of constraining factors that determine the decision. By proper definition of problem and introduction of linear programming, as an important quantitative technique, the problem of selection of production-sales program with the help of information technology is solved quickly with saving time and company’s resources.

Keywords:  business and financial decisions; information; relevant costs and benefits; linear programming; objective function

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