Practice Firm - Numeric Simulations

Numeric Simulations

A numeric simulation can mimic a whole company on a high level or it can be more detailed and mimic specific organizational units or processes. In a numeric simulation the learner or user makes decisions by pulling levers and dialers as well as through inputting numbers. The decisions are processed and the outcomes are calculated and shown in reports and graphs, e.g. price and volume as well as number of employees can be decisions and the outcome can be viewed in e.g. an income statement, a balance sheet and a cash flow statement. Feedback is given throughout the simulation or at certain intervals, such as when a year has passed. Many numeric business simulations include elements of competition against other participants or against computer generated competitors.

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