A Key Factor in the "Construct Simulation Model" Phase of a Simulation

question 52

Multiple Choice

A key factor in the "construct simulation model" phase of a simulation study is which of the following?

• A)Determine starting (initial)conditions and values
• B)Defining simulation objectives
• C)Specification of probability distributions
• D)Specification of values for variables and parameters
• E)Specification of desired outcomes by management

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Definitions:

Depreciation

An accounting method of allocating the cost of a tangible or physical asset over its useful life to account for declines in value.

Earnings Before Interest And Taxes

A gauge of corporate profit that disregards expenses related to interest and income tax.

OCF

Operating Cash Flow, which is the cash generated from normal business operations, indicating a company's ability to generate sufficient positive cash flow to maintain and grow its operations.

Depreciation

Depreciation is the accounting process of allocating the cost of a tangible asset over its useful life, reflecting the decrease in value over time.