Monte Carlo Simulation Is Likely to Be Most Useful

question 9

Multiple Choice

Monte Carlo simulation is likely to be most useful

• A)for very complex projects.
• B)for projects of moderate complexity.
• C)for very simple projects.
• D)regardless of the project's complexity.

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Definitions:

Net Operating Income

The income generated from normal business operations, calculated by deducting operating expenses from gross profit.

Planning Budget

A budget established at the beginning of a planning period, reflecting the expected income and expenditures.

Revenue and Spending Variance

The difference between the expected (budgeted) and actual amounts of revenue and expenses.

Flexible Budget Performance Report

A financial report that compares actual operating results to budgeted amounts adjusted for actual activity levels.