Which of the Following Is TRUE Regarding the Use of Simulation

question 48

Multiple Choice

Which of the following is TRUE regarding the use of simulation?

• A) It is always very easy to build a simulation model.
• B) It may interfere with real-world systems.
• C) It always yields optimal solutions.
• D) It allows time-compression in testing major policy decisions.
• E) Few constraints, if any, have to be considered.

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Definitions:

Direct Method

A way of preparing a cash flow statement where actual cash flow information from the company’s operations is used, directly showing cash receipts and cash disbursements.

Machine Hours

A measure of production output based on the amount of time machinery is operated.

Number Of Employees

The total count of individuals employed by a company or organization, either full-time or part-time.

Step-down Method

A method used in cost accounting to allocate service department costs to producing departments, considering inter-departmental services.