A Simulation Model

question 17

Multiple Choice

A simulation model:

• A) describes operating characteristics with known equations.
• B) replicates the service of customers and keeps track of characteristics such as the number in line, the waiting time, and the total time in the system.
• C) prescribes what should be done in a situation.
• D) finds the optimal solution to a problem without having to try each alternative.

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Definitions:

Intra-entity Gross Profit

The gross profit resulting from transactions within the same company or between parent and subsidiary companies, which may need to be eliminated in consolidated financial statements.

Consolidation Worksheet

A tool used in preparation of consolidated financial statements that helps combine the financials of a parent company and its subsidiaries.

Goodwill

An intangible asset on a company's balance sheet representing the premium paid over the book value of the assets acquired in a merger or acquisition.

Undervalued Equipment

Equipment or assets that are appraised or recorded on financial statements at a value less than their true market value.