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Improving simulation model analysis and communication via design of experiment principles: an example from the simulation-based design of cost accounting systems

Author

Listed:
  • Sina Hocke
  • Matthias Meyer
  • Iris Lorscheid

Abstract

Simulation offers management accounting research many benefits, such as the ability to model and to experiment with complex and large systems. At the same time, the acceptance of this method is hampered by a feeling of complexity often associated with simulation models and their behavior, as well as with challenges in communicating the models’ results. This study shows how these challenges can be addressed via the systematic use of design of experiment (DOE) principles. The DOE process framework is applied to a simulation model of a cost accounting system that is used to quantitatively evaluate two different methods for the allocation of service costs. As a result, we not only demonstrate the potential and benefits of simulation in the field of management accounting, but also show how DOE principles can help to improve understandings of simulation model behavior and the communication of simulation results. Copyright Springer-Verlag Berlin Heidelberg 2015

Suggested Citation

  • Sina Hocke & Matthias Meyer & Iris Lorscheid, 2015. "Improving simulation model analysis and communication via design of experiment principles: an example from the simulation-based design of cost accounting systems," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 26(2), pages 131-155, August.
    • Handle: RePEc:spr:jmgtco:v:26:y:2015:i:2:p:131-155
    DOI: 10.1007/s00187-015-0216-z
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    References listed on IDEAS

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    13. Grimm, Volker & Berger, Uta & DeAngelis, Donald L. & Polhill, J. Gary & Giske, Jarl & Railsback, Steven F., 2010. "The ODD protocol: A review and first update," Ecological Modelling, Elsevier, vol. 221(23), pages 2760-2768.
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    More about this item

    Keywords

    Cost allocation; Data analysis; Design of experiments; Management accounting; Simulation; Standards; C90; C63; M41;
    All these keywords.

    JEL classification:

    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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