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
i want to get the answer for exercises 2.1 and 2.2 on strategic and tactical decisions

What is period cost Period costs are those costs which are reported as expanses of the period in question. These are cost which are not assigned to the product but are charged

INVENTORY PLANNING AND CONTROL The main goal of "inventory control" is to discover and maintain the optimum level of investment in all types of inventories, from raw materials

The CP introduced in the Indian financial market, for the recommendations of the Vaghul Committee has turn into a well-liked debt instrument of the corporate world. Commercial Pape

School problem is asking to calculate the work in progress inventory for the beginning of a month without providing previous month data.

Techniques of CVP Analysis  The CVP  analysis deals with the price costs structure and the sales volume and identifies the profit figure with one or other combination of these

Painter Ltd, which manufactures and sells a single product, is currently producing and selling 102,000 units per month, which represents 85% of its full capacity. Total monthly cos

Ask question #Miwhy is the activity based costing unaccepable for external financial reportnimum 100 words accepted#

SK 2 Chapter 10: Master budgeting Objective How organisations strive to achieve their financial goals by preparing a number of budgets that together form an integrated business pla

Compute the ‘fair' value of the two nearest to expiration futures contracts on the Hang - Seng Index (HSI) using HSI as the underlying asset Answer the following questions: a