Which of the Following Is TRUE Regarding the Use of Simulation

question 48

Multiple Choice

Which of the following is TRUE regarding the use of simulation?

• A) It is always very easy to build a simulation model.
• B) It may interfere with real-world systems.
• C) It always yields optimal solutions.
• D) It allows time-compression in testing major policy decisions.
• E) Few constraints, if any, have to be considered.

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Definitions:

Finished Goods

Items that are finished with the production phase but are still awaiting sale or delivery to consumers.

Cost of Goods Sold

The direct costs attributable to the production of goods sold by a company, including materials and labor costs.

Work in Process Inventory

Goods that are partially completed in manufacturing but not yet ready for sale, reflecting a stage between raw materials and finished goods.

Supplies Inventory

Items held in stock by a business, such as office supplies or maintenance materials, not directly used in manufacturing but necessary for operations.