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

Explain out of pocket cost, Explain Out of pocket cost A cost which wil...

Explain Out of pocket cost A cost which will have to be paid to outsides as against cross such as depreciation, which do not require any cash payment this cost is relevant in t

Accounting Ratios, Explain TWO limitations of using accounting ratios to as...

Explain TWO limitations of using accounting ratios to assess the performance of a firm and suggest how each limitation may be improved

Explain the growth, Explain the growth, index, sectoral, gilt and money mar...

Explain the growth, index, sectoral, gilt and money market methods? (i) What are the key variations among the open ended and close ended methods? What are the plus and minuses

What are the advantages of ratio analysis, Advantages of ratio analysis ...

Advantages of ratio analysis 1) Helpful in financial analysis: financial analysis is easier if accounting ratios are used to analyze the different financial statement relatio

Budget costing, Archie Ltd manufactures a product called Gizmo. It uses th...

Archie Ltd manufactures a product called Gizmo. It uses the following direct inputs: Price Quantity Cost per unit of output Direct materials $4 per gram 10 grams per unit $40 per

TOTAL PRODUCTIVE MAINTENANCE, Identify the ways in which Total Productive M...

Identify the ways in which Total Productive Maintenance could be applied as part of a manufacturing organisation''s quality programme

Explain the methods of pricing, Explain the Methods of pricing The fol...

Explain the Methods of pricing The following methods are used for intra company transfer pricing: 1) Total cost method: transfer is made at absorption cost which is the t

Consortium lending, Consortium Lending: As the financial needs of a singl...

Consortium Lending: As the financial needs of a single unit are more than a single bank can cater to, then more than one bank comes together to finance the unit jointly spreading

What is the significance of performance budgeting, Significance of performa...

Significance of performance budgeting Performance budgeting will help the management of companies by introduction of management objective to improve performance. Further it wi

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