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Problem in AMA

(Guest)

In least cost method if dummy row or column is inserted then how can cost is allocated? is dummy avoided ?

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5 Replies

Gnananandam (Student) (74 Points)
Replied 09 March 2017

The dummy is not to be avoided, we have to allocate the cost to the dummy as usual.

(Guest)

someone said that no allocation is made to dummy. as per his view dummy is allocated in the end.is he right?

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Gnananandam (Student) (74 Points)
Replied 10 March 2017

I think he might be wrong...Dummy is to be allocated as usual. Plz refer Practice Manual 1st Question (page no.11.6); the question is solved by VAM, There is no special treatment for the Dummy: So the same treatment is applicable for least cost method also..

Gnananandam (Student) (74 Points)
Replied 17 March 2017

Hello madam... are u agree with my answer..??? Is there any doubt???

(Guest)

hello,. yeah I agree with ur point. actually I also agree with the solution given in P.M . I was confused because solution given my teacher was different.As per his opinion no cost is allocated to dummy in least cost method.

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