The Overall Modeling Process Typically Done in the Business World

question 7

True/False

The overall modeling process typically done in the business world always require seven steps: define the problem,collect and summarize data,develop a model,verify the model,select one or more suitable decisions,present the results to the organization,and implement the model and update it over time.

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Definitions:

Periodic Inventory Method

An accounting method where inventory and cost of goods sold are calculated at set intervals, such as yearly or quarterly.

Promissory Note

A formal written promise by a borrower to pay a certain sum at a fixed future date.

Notes Payable

Short-term or long-term liabilities recorded when a company borrows money, often in the form of a formal written agreement to pay a specified amount with interest.

Net Method

The net method accounts for purchase discounts by recording the initial purchase at net of the discount, encouraging prompt payment by recognizing discounts not taken as interest expense.