Advantages of simulation, Managerial Accounting

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Advantages of Simulation

1) It can be used in areas where analytical techniques are not available or would be too complex.

2) Constructing the model inevitably must involve management and this may enable a deeper insight to be obtained into a problem.

3) A well-constructed model enables the results of various policies and decisions to be examined without any irreversible commitments being made.

4) Simulation is a cheaper and less risky than altering the real system.

5) Can be used for training decision makers.


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