Book Contents

Ch. 9
Building Model-Driven Decision Support Systems

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Accounting and Financial Models

Many accounting and financial models are incorporated in specific Model-Driven DSS. For example, target return pricing is a popular method of choosing a selling price for a new product. This marketing analysis tool uses two models. An analyst determines a break-even point for a new product and then a target Return on Investment (ROI). After "what if" analysis a selling price is established. Model-Driven DSS can assist in analyzing the relationship between prices, advertising spending and profits in brand and product planning. Models can assist in break-even analysis, cost-benefit analysis and financial budgeting capital budgeting. A number of Decision Aids developed in JavaScript that use accounting and financial models are on-line at DSSResources.COM.


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