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Corporate planning models: What level of abstraction?

This paper considers the problem of appropriate design for a corporate planning model. Two models are described which illustrate the range of choice available concerning level of detail. The first, an accounting level model, is simple to develop but may not be responsive to the changing environment in which most companies operate. Thus, it may have limited predictive capability. The second, an operating level model, while capable of validly representing the company operations, may be overly difficult and expensive to develop, maintain and use.