Which of the Following Is Not a Common Application of a Simulation

question 28

Multiple Choice

Which of the following is not a common application of a simulation?

• A)Determining the flow of raw materials in a factory
• B)Determining effective deployment of expensive resources
• C)Customer arrivals at a service location
• D)Processing time for a banking facility
• E)Determining economic order quantity for inventory

Determine monthly deposit amounts needed to reach financial goals.

Apply the concept of continuous compounding to calculate future values.

Evaluate investment opportunities using present value and future value concepts.

Understand and calculate the effective annual rate (EAR) for mortgages and loans.

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Definitions:

Accrual

Accrual is an accounting method where revenues and expenses are recorded when they are earned or incurred, regardless of when cash is exchanged.

Liability

A liability is a company's financial debt or obligation that arises during the course of business operations, listed on the right-hand side of the balance sheet.

Asset

Resources with economic value owned by an individual, corporation, or country, expected to provide future benefits.

Tax Deductible

Expenses that can be subtracted from gross income to reduce the amount of income subject to income tax.