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
The Rohr Company’s old equipment for making subassemblies is worn out. The company is considering two courses of action: (a) Completely replacing the old equipment with new equipme

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Coolidge Company estimates that its production workers will work 125,000 direct labor hours during the upcoming period and that overhead costs will amount to $500,000. What predete

Suppose the spot price of gold is $1700 per ounce. The futures price for delivery in six months is $1712, while the futures price for delivery in one year is $1720. The interest ra

how long will it take to get answers after question are submitted

INTRODUCTION AND RATIONALE The purpose of this assignment is to help students further develop a number of the skills and knowledge required and valued by the accountancy profe

relevance to business owners, employees and public?

What is Programmer budgeting It is a combination of programming and systems refers to the activity and system analysis refers to cost benefit analysis or operations research. I

reasons for favourable or adverse variances i.e. prise usage, mix, yeild

Advance Factoring and Maturity Factoring: In both recourse and non-recourse factoring whether the factor advances cash against book debts to the client instantly on assignment