Disadvantages of simulation, Managerial Accounting

Disadvantages of Simulation

1) Although all models are simplification of reality, they may still be complex and require a substantial amount of managerial and technical time.

2) Practical simulation inevitably involves the use of computers which may be a handicap to firms without computer facilities or easy access to a computer.

3) Simulation don not produce optimal results. The manager makes the decision after testing a no. of alternative policies. There is always the possibility that the optimum policy is not chosen.

4) Simulation can be expensive in terms of design personnel, facilities e.g computers.

5) Each simulation model is unique and therefore cannot be generalized to other environments.

Posted Date: 12/7/2012 6:00:41 AM | Location : United States







Related Discussions:- Disadvantages of simulation, Assignment Help, Ask Question on Disadvantages of simulation, Get Answer, Expert's Help, Disadvantages of simulation Discussions

Write discussion on Disadvantages of simulation
Your posts are moderated
Related Questions
Input or exogenous variables These are variables of two types: 1) Controlled variables: These are variables that can be controlled by management. By changing the input

Question: (a) "Budgetary control comprises two distinct elements - Planning and Control''. ‘'A budget is a statement of what it is reasonable to believe can be made to ha


I have two problems due in two hours can you do this for me?

EVALUATION OF THE REGRESSION MODEL The regression equation calculated above was based on the assumption that cost varied with the units produced. However, a number of different

State overhead expenses It is to be noted that the term overheard has a wider meaning than the term indirect expanses. Overheads include the cost of the indirect material and

Yuma foods acquire Aldo's tortillas several years ago. Aldo's continued to operate as an independent company, except that Yuma foods has exclusive authority over capital investment

Explain variable cost and fixed cost Variable costs: costs that vary almost in the direct proportion to the volume of production are known as variable costs. The examples of

#questihow do we use emuneration method in interger programing

M/s ABC's present credit terms are 1/10 net 30 that they are planning to change to 2/10 net 30.  The current average collection period is 20 days and the variable cost to sales rat