Constraints
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Description
In an optimization problem, the constraint is some function of the decision variables that must be less than or equal to, greater than or equal to, or equal to some specific value. For example, we might use a less than or qual to constraint to ensure that the total labor used in producing a given number of products does not exceed the amount of available labor.
In Managerial Accounting a constraint is anything that prevents you from getting more of what you want.
Concept Prerequisite
Wikipedia Reference
http://en.wikipedia.org/wiki/Constraint optimization
Learning Material
Covered in Topic(s)
| Linear Programming |
| Managerial Accounting and the Business Environment |
| Overview of Optimization |
| Relevant Costs for Decision Making |