Which of the Following Statements Is INCORRECT Regarding the Disadvantages

question 50

Multiple Choice

Which of the following statements is INCORRECT regarding the disadvantages of simulation?

• A) Each simulation run only provides a sample of how the real system will operate.
• B) The summary of the simulation data only provides estimates about the real system.
• C) The process of developing a simulation model of a complex system can be time-consuming.
• D) The larger the number of probabilistic inputs a system has, the less likely a simulation will provide the best approach for studying the system.

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Definitions:

Average Inventory

The mean value of a company's inventory over a specific period, used to analyze inventory levels and manage stock efficiently.

Ending Inventory

The cumulative worth of all products a company holds in inventory at the conclusion of a financial period.

Beginning Inventory

The value of all inventory held by a company at the start of an accounting period, before any purchases or sales have occurred.

Accounts Receivable Turnover

A financial ratio measuring how many times a company collects its average accounts receivable balance within a certain period.