Disadvantages of simulation, Managerial Accounting

Assignment Help:

Disadvantages of Simulation

1) Although all models are simplification of reality, they may still be complex and require a substantial amount of managerial and technical time.

2) Practical simulation inevitably involves the use of computers which may be a handicap to firms without computer facilities or easy access to a computer.

3) Simulation don not produce optimal results. The manager makes the decision after testing a no. of alternative policies. There is always the possibility that the optimum policy is not chosen.

4) Simulation can be expensive in terms of design personnel, facilities e.g computers.

5) Each simulation model is unique and therefore cannot be generalized to other environments.


Related Discussions:- Disadvantages of simulation

C-v-p analysis – multiple products, C-V-P ANALYSIS – MULTIPLE PRODUCTS ...

C-V-P ANALYSIS – MULTIPLE PRODUCTS The simple product CVP analysis can be extended to handle the more realistic situations where the firm produces more than one product. The o

Monitor, Monitor Let's start by having you think about the controlling ...

Monitor Let's start by having you think about the controlling your car (aka "driving")! Your steering, acceleration, and braking are not the random things to be done; they are

Determine the profitability ratios in relation to investment, Determine the...

Determine the Profitability ratios in relation to investment a) Return on capital employed/ return on investment b) Return on equity or return on equity share holders' funds

Post Cost, What is the correct formula for Post Cost?

What is the correct formula for Post Cost?

Rates, What is your base rate for graduate level accounting? If I decide to...

What is your base rate for graduate level accounting? If I decide to use your service can the tutor and I speak via skype? I''m not located in the U.S.

Assignment help, I need help making sure I did my accounting assignment cor...

I need help making sure I did my accounting assignment correctly

Terms of payment, Terms of payment vary broadly in practice. At one conclus...

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

Current cost acconting, critically examine the current cost accounting for ...

critically examine the current cost accounting for price level changes

What are the requirements of a good budgeting system, Requirements of a goo...

Requirements of a good budgeting system Following are the requirement of a good budgeting system: 1) Budgeting process should be backed and supported by the chief executive

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd