Monte Carlo Simulation Involves the Following Steps

question 71

Multiple Choice

Monte Carlo simulation involves the following steps:

• A)Step 1: Modeling the project and Step 2: Specifying probabilities.
• B)Step 1: Modeling the project, Step 2: Specifying probabilities, and Step 3: Simulating cash flows.
• C)Step 2: Specifying probabilities, Step 3: Simulating cash flows, and Step 4: Calculating present value.
• D)Step 1: Modeling the project, Step 2: Specifying probabilities, Step 3: Simulating cash flows, and Step 4: Calculating present value.

Identify and explain the purposes of legal rules and the role of law in society.

Apply critical-thinking skills to legal issues and case analysis.

Know where to find applicable laws for specific legal problems and the hierarchy of law sources.

Understand the concept of legal positivism and its distinction from natural law.

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Definitions:

Direct Materials Purchases Variance

The difference between the actual cost of materials purchased and the expected cost at standard prices.

Direct Labor-Hours

An alternative term for direct labor-hour, referring to the labor time spent by employees directly on manufacturing a product.

Materials Price Variance

The difference between the actual cost of materials purchased and the expected (standard) cost times the actual quantity of materials used.

Direct Materials Purchases Variance

The difference between the budgeted cost of materials that should have been purchased for the production volume and the actual cost of materials purchased.