In the simplex method, the indirect costs are found by taking the inner products of the multiplier (pricing) vector with each column of the problem’s defining A matrix. This product, for a column j, is usually denoted by zj. For cj, the original objective function coefficient for column j, the term (zj−cj) or (cj−zj) is used to determine if the associated variable is a candidate to enter the basic feasible solution. For any basic variable xk, (zk−ck) = 0. The (zj−cj) terms are called relative costs (relative to the basis) or reduced costs.