Using Excel to teach simulation for management accounting

• Main Authors: GOH, Clarence, SEOW, Poh Sun, PAN, Gary
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2021
• Subjects: Excel; data analytics; simulation; management accounting; accounting curriculum; Accounting; Educational Methods
• Online Access: https://ink.library.smu.edu.sg/soa_research/1930; https://ink.library.smu.edu.sg/context/soa_research/article/2957/viewcontent/Paper_Post_Print__4_.pdf
• Institution: Singapore Management University

In this article, we introduce an Excel exercise on simulation that can be implemented in a management accounting class. Specifically, we introduce a three phase implementation process where instructors (i) give the class an introduction to simulation, (ii) introduce students to a four-step process used in conducting analysis using simulation in Excel, and (iii) introduce a simulation problem focused on a specific area of management accounting (revenue projection) and guide students in completing the simulation analysis in Excel. By highlighting how simulation models can be built using Excel and used to solve a management accounting problem, our article identifies an important data analytics skillset for accountants and provides guidance on how it can be implemented into the accounting curriculum.