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CMA Final · Strategic Cost Management · Assignment

Three workers A, B and C are to be assigned one each to jobs 1, 2 and 3. The cost in ₹ thousand is: A: 8, 6, 10; B: 9, 12, 7; C: 11, 9, 8 (for jobs 1, 2, 3 respectively). What is the minimum total cost?

The minimum total cost is ₹23 thousand, obtained by assigning A to job 2, B to job 1 and C to job 3, at 6 + 9 + 8. All other one-to-one assignments cost at least ₹24 thousand.

  1. A₹23 thousandCorrect
  2. B₹24 thousand
  3. C₹28 thousand
  4. D₹33 thousand

Explanation

Enumerating the six assignments gives totals of 28, 24, 23, 24, 28 and 33. The minimum is A-2, B-1, C-3, which costs 6 + 9 + 8 = 23. The ₹24 thousand options are alternative assignments that are not optimal.

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