Abstract: A method of simulating a formation of an incision or a deformation in a physical object. The method comprises spatially simulating a physical object in a simulation space using a volumetric arrangement of a plurality of prismatic elements, each the prismatic element having at least one adjustable parameter simulating a physical property of a respective segment of the physical object, measuring a movement of at least one simulation tool in the simulation space, selecting at least one of the plurality of prismatic elements according to the measurement, adjusting at least one adjustable parameter of at least one selected prismatic element according to the measurement, and spatially simulating an incision or deformation formed in the physical object in response to the movement using the adjusted volumetric arrangement.