Which of the Following Statements Regarding Simulation Is True

question 72

Multiple Choice

Which of the following statements regarding simulation is true?

• A) Simulation can be physical or mathematical.
• B) Simulation has numerous areas of application in operations.
• C) Simulation attempts to duplicate a real system.
• D) Monte Carlo simulation is a chance-based mathematical model of a real system.
• E) All of these are true.

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Definitions:

Controlling Costs

Involves implementing measures and techniques to monitor and reduce business expenses to improve profitability without compromising the quality of goods or services.

Pricing Decisions

Pricing decisions involve determining the price at which a product or service will be offered to the market, taking into account costs, competition, and demand.

Finished Goods Inventory

Completed products that are ready for sale but have not yet been sold.

Job Cost Sheets

Detailed records that document the costs associated with a specific job or project, including materials, labor, and overhead.