One of the Advantages of Simulation Is That

question 76

Multiple Choice

One of the advantages of simulation is that

• A) real-world complications can be included that most OM models cannot permit
• B) it always generates a more accurate solution than a mathematical solution
• C) it is a trial-and-error approach that may produce different solutions in repeated runs
• D) model development is less time consuming than for mathematical models
• E) model solutions are transferable to a wide variety of problems

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Definitions:

Profitability

A financial metric used to assess the ability of a business to generate earnings relative to its revenue, assets, equity, or other financial metrics.

Liquidity

How effortlessly an asset can be turned into cash without altering its market price.

Periodic Inventory System

An inventory accounting system where the inventory level is updated and the cost of goods sold is calculated at the end of a period, rather than after each sale.

Purchases Account

An account used in accounting to record the total cost of goods bought for resale during an accounting period.