With the inherent uncertainty in sales forecasts,________ is an appropriate tool to analyze cash budgets.
A)Crystal Ball
B)Latin Hypercube
C)PHStat
D)Monte Carlo simulation

Question

Quizplus · Accepted Answer

Monte Carlo simulation is an appropriate tool to analyze cash budgets, as it uses statistical modeling to simulate a range of possible outcomes based on various sales forecasts, enabling managers to make more informed decisions and effectively manage cash flow. It takes into account the inherent uncertainty in sales forecasts and provides a range of possible outcomes, allowing managers to better prepare for potential cash shortfalls or surpluses.

With the Inherent Uncertainty in Sales Forecasts,________ Is an Appropriate