Which one of the following statements regarding simulation analysis is FALSE?
A) Simulation analysis is a form of hypothesis testing.
B) In simulation, dependent variables reflect the values of both the decision variables and the uncontrollable variables.
C) Statistical methods require the replication of simulation runs.
D) Each time a simulation model is run for a given set of decision variables, the same random numbers must be used.
D
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Shown below is an incomplete pairwise comparison matrix for three alternatives. What comparison factor should A3 receive when compared to A2?
Factor A1 A2 A3 A1 1 3 5 A2 1 7 A3 ? 1 A) 3 B) 1/3 C) 7 D) 1/7 E) None of the above
When using the indirect method to calculate and report the net cash provided or used by operating activities, net income is adjusted for all but which of the following?
A. Depreciation and amortization expense. B. Changes in noncurrent assets and noncurrent liabilities. C. Changes in current liabilities related to operating activities. D. Revenues and expenses that did not provide or use cash. E. Gains and losses from nonoperating items.
Net income divided by average total assets is:
A. Current ratio. B. Return on total assets. C. Total asset turnover. D. Profit margin. E. Days' income in assets.
Clariton Corporation has two divisions, Kissimmee and Grant, and evaluates management on the basis of return on investment. Kissimmee currently makes a part that it sells to both Grant and outsiders. Selected data follow. Selling price to Grant$25 Variable cost 18 Fixed costs 80,000 Kissimmee is seeking an increase in its selling price to $28 per unit because of rising costs. Grant can obtain comparable units from an outside supplier for $26; however, if Grant uses the supplier, Kissimmee will have idle capacity because of an inability to increase sales to outsiders. From the perspective of Clariton Corporation:
A. Kissimmee should continue to do business with Grant and charge $28 per unit. B. Grant should do business with the outside supplier. C. Kissimmee should continue to do business with Grant because Kissimmee's variable cost per unit is only $18. D. Grant should split its business between Kissimmee and the outside supplier. E. Kissimmee should continue to do business with Grant and charge $25 per unit.