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
Period of operating cycle implies that total sum of number of days included in the various stages of operation commencing from the purchase of raw materials and ending along with c

Funds produced from operations, throughout an accounting period, raise working capital by an equivalent amount. The two major components of funds generated from operations are depr

What is performance budgeting The concept of performance budgeting is used mainly in the government and public sector undertakings. It projects the government activities an

M/s ABC has an existing sales of Rs.50 lakhs and permits a credit period of 30 days to its customers.  The firm cost of capital is 10% and the ratio of variable cost to sales is 85

The firm's require holding cash may be attributed to the three motives specified below: The transaction motive The precautionary motive The speculative motive.


Salialailai Ltd manufactures water tanks for different sizes for use by industrial customers. The company uses a job costing system, in which manufacturing overhead is applied on t

1. In order to boost the housing market throughout 2009 and into 2010, the federal government offered a tax credit to first-time home buyers and some repeat buyers.

Granger products had the following transactions for the just completed month. The company had no beginning inventories. a)$75,000 in raw materials were purchased for cash. b) $7

Terms of payment vary broadly in practice. At one conclusion, if the seller has financial resources, she or he may extend liberal credit to the buyers, conversely the buyer pays in