Which of the Following Statements Is INCORRECT Regarding the Disadvantages

question 50

Multiple Choice

Which of the following statements is INCORRECT regarding the disadvantages of simulation?

• A) Each simulation run only provides a sample of how the real system will operate.
• B) The summary of the simulation data only provides estimates about the real system.
• C) The process of developing a simulation model of a complex system can be time-consuming.
• D) The larger the number of probabilistic inputs a system has, the less likely a simulation will provide the best approach for studying the system.

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Definitions:

Periodic Inventory System

A method of inventory valuation in which updates to inventory levels and cost of goods sold are made periodically, such as at the end of the fiscal year.

Gross Method

An accounting approach for recording purchases at the invoice’s gross amount without deducting any cash discounts for early payment.

Merchandise

Goods bought and sold in the course of business operations.

Periodic Inventory System

An accounting system that records inventory purchases during the accounting period but waits until the end of the period to adjust the inventory balances and record cost of goods sold.