Application of Simplex Method to Accounting Decision Making

This paper aims at evaluating decision making in accounting using Simplex Method approach. It aims at using the simplex Method to solve some accounting problems in order to get optimum allocation of Scarce resources to competing activities under the assumptions of certainty, linearity and constant price. It also considers simplex method as an aid to accounting decision making used to eliminate off-the-cuff decisions based on intuition or experience by using mathematical approach to accounting problem solving.Simplex Method was applied to some accounting pr;blems like Capital Budgeting, Establishing Optimum Transfer prices and Cost Volume Profit Analysis. Analysis of the results of this method reveals that:1. Simplex Method Overcomes the major disadvantage of graphical method which is its inability to solve problems involving more than two products.2. It offers tremendous help to managers in the application or utilization of CVP analysis in areas like(a) product planning decision(1,) profit planning decision and(c) Pricing decision.3. Simplex method is very appropriate and superior to some of the tools or techniques used in capital budgeting, and price transfer. It helps to guide the management on the maximum or minimum investment in a particular portfolio