Which of the Following Are Advantages to Simulation

question 90

Multiple Choice

Which of the following are advantages to simulation?
I. Time compression
II. What-if questions are possible
III. Flexibility
IV. Trial and Error approach
V. Input must be user generated

• A) I, III, V
• B) I, II, V
• C) II, III, IV, V
• D) I, II, IV, V
• E) I, II, III

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Definitions:

Capacity

The maximum level of output that a company can sustain to produce in a given period under normal circumstances.

Collateral

An asset that a borrower offers to a lender as a security for a loan, which can be seized if the loan is not repaid.

Credit Cost Curve

Graphical representation of the sum of the carrying costs and the opportunity costs of a credit policy.

Carrying Costs

Expenses associated with holding inventory, including storage, insurance, and opportunity costs.