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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
Publikationstyp
Journal Article
Date Issued
2015-07-28
Sprache
English
Author(s)
Institut
TORE-URI
Journal
Volume
26
Issue
2-3
Start Page
131
End Page
155
Citation
Journal of Management Control 2-3 (26): 131-155 (2015)
Publisher DOI
Scopus ID
Publisher
Springer
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.
Subjects
cost allocation
data analysis
design of experiments
management accounting
simulation
standards
DDC Class
650: Management