Model construction, Managerial Accounting

Model Construction

The success of a simulation exercise is related to the predictive quality of the underlying model, so that considerable care should be taken with model construction. Significant factors in model development are:

Object oriented: The model must be constructed with some definite reason and the model results should be directly associated to this purpose.

Critical variables and relationships: Model building is an iterative, creative procedure with the aim of recognizing those variables and relationships that should be included in the model.

Simplicity: The most excellent model is the simplest which has sufficient predictive qualities.

Management involvement: To construct good models these must be a thorough understanding of actual operations. Only management here these knowledge so that they must be involved.

Posted Date: 12/6/2012 7:44:41 AM | Location : United States







Related Discussions:- Model construction, Assignment Help, Ask Question on Model construction, Get Answer, Expert's Help, Model construction Discussions

Write discussion on Model construction
Your posts are moderated
Related Questions
Definition of Cost reduction Cost reduction is planned positive approach to reducing expenditure. Cost reduction exercises are planned campaigns to cut expenditure. It is a con

Exact management of receivables acquires a suitable collection policy that outlines the collection procedures. Collection policy consider as the procedure adopted through a firm to

It is a spontaneous source of finance that is commonly extended to business organization depending on the custom of the competition and trade prevailing within the organization and

What are the Advantages of cost accounting: 1. Cost accounting as an aid to management: cost accounting helps the management in carrying out of its functions, planning, organ

Management Accounting 1) Which is concerned with provision of information to people within the organization to help them make better decisions? Management accounting is concer

what are the different arguments against direct materials, direct labor, and factory overhead

briefly discuss five characteristics of relevant cost

The Ragan Corporation uses a process cost system. The company started March with 2,300 units in Work in Process-Dept. A. During the month 4,000 units were started. At the end of th


Number of Operating Cycles: The number of operating cycles in a period is determined by dividing the number of days in a year i.e.365 by the length of net operating cycle. Express