Which Statement Is False Regarding Mathematical Models

question 69

Multiple Choice

Which statement is false regarding mathematical models?

• A)The modeling process can be a learning experience.
• B)It is possible to simulate several months, quarters, or years of company operations in a matter of minutes.
• C)Models are more expensive than the trial- and- error method.
• D)Models provide a predictive power.

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Definitions:

Variable Cost

Costs that vary in direct proportion to changes in levels of activity or volume of goods produced, such as materials and labor.

Selling Price

The amount charged to customers for a product or service, determining the revenue earned by a business.

Contribution Margin Ratio

A financial metric that measures the portion of revenue remaining after variable costs are subtracted, expressed as a percentage of sales.

Budgeted Sales Revenue

Projected income from sales activities over a specific period, as estimated during budgeting.