The Inherent Risks That Exist in Optimization Models Can Be

question 92

Multiple Choice

The inherent risks that exist in optimization models can be better understood and mitigated using the capabilities of risk analysis software such as ________.

• A)Solver
• B)PHStat
• C)Crystal Ball
• D)MS Excel

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Definitions:

Expenses

Outflow of money to another person or company to pay for an item or service, or for a category within the income statement.

Costs

The total amount of money required for the production of goods or services, including materials, labor, and overhead expenses.

Prime Costs

The direct costs of manufacturing, including direct labor and materials.

Direct Labour

The work done by employees directly involved in producing a product or delivering a service, often considered a variable cost.