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:

Finished Goods

Items that have been completed by the manufacturing process, and are ready for sale to customers.

Ending Balance

The final amount in an account at the end of an accounting period, reflecting all transactions that occurred during that period.

Variable Manufacturing Overhead

The portion of manufacturing overhead costs that vary directly with production volume, such as utilities and raw materials.

Work in Process Inventories

Current assets that represent partially completed goods which are still in the production process.