One Characteristic of Simulation Analysis Is That

question 25

Multiple Choice

One characteristic of simulation analysis is that:

• A) it allows only one variable at a time to change.
• B) it limits variation to only a few more likely combinations.
• C) many variations are analyzed regardless of their likelihood of occurrence.
• D)it identifies the variable that has the greatest effect on a project's value.

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Definitions:

Economic Environment

The Economic Environment consists of all external economic factors, such as inflation, unemployment, and economic policies, that influence a business's operating conditions and financial performance.

Operating Profit

This is the profit earned from a firm's core business operations, excluding deductions of interest and taxes.

Segment C

Segment C generally refers to a specific division, category, or portion of a business or market that has been identified for analysis, reporting, or targeting purposes.