Types of non-controlled variables, Managerial Accounting

Types of Non-Controlled Variables

a) Parameters:

These are input variables that for a given simulation have a constant value. They are factors which help specify the relationship between other variables e.g. in pdn simulation the time taken for routine maintenance, the cost of stock-out, etc.

b) Status Variables:
Status variables may be used to specify the days and seasons to be used in a simulation e.g. demand may be affected by the day of the week

c) Output Variables:
These are the outcomes of the simulation. They occur from the computations and tests executed in the model. The output variables should be carefully selected to reflect the factors that are critical to the real system being simulated and they should associate to the objectives of the real system.  E.g. the output variables for an inventory simulation would include: Cost of holding stock, number of stock-outs, number of unsatisfied orders, number of replenishment orders, and cost of the re-ordering etc.

Posted Date: 12/7/2012 5:52:09 AM | Location : United States







Related Discussions:- Types of non-controlled variables, Assignment Help, Ask Question on Types of non-controlled variables, Get Answer, Expert's Help, Types of non-controlled variables Discussions

Write discussion on Types of non-controlled variables
Your posts are moderated
Related Questions
The Braggs & Struttin' Company manufactures an engine for carpet cleaners called the "Snooper." Budgeted cost and revenue data for the "Snooper" are given below, based on sales of

Inventory planning & control under uncertainty The basic EOQ model assumes that all the parameters (elements) in the model are certain (i.e. can be predicted precisely in advan


when assessing Market Value of common stock, is the "market value" the market value when the company sold the stock or the current market value?

Define Activities based costing by horngren According to horngren " ABC is a system that focuses on activities as fundamental cost object and utilizes cost of these activi

Explain with examples five areas where linear programming can be applied in Managerial accounting

During the year Leyland Company completed 1,300 units of product. Ending inventory consisted of 400 units that were 50% complete. The total dollar cost associated with production o

BENCH MARKING In the current business environment, organizations are under a lot of pressure to improve performance and that of their divisions or subsidiaries. Bench marking i

Answer each of the following independent questions in the space provided on page 11. Round all computations to the nearest dollar. a) Company A deposited $15,000 in a savings ac

Project C would involve a current outlay of $50,000 on equipment and $15,000 on working capital. The investment in working capital would be increased to $21,000 at the end of the f