LINEAR-PROGRAMMING AND ANALYTIC ACCOUNTIN G

This paper intents to show the ties between the results of solving lin ear programs and the methods of allocation of costs in cost accounting . It refers to the method of Kaplan and Thomson and shows its weakness . It extents this method by using pseudo-dual variables defined for an y production instead of dual variables which, in the method of Kaplan and Thomson, are just defined for an optimal production in the sense o f profit maximization, rarely the case for an actual production.