scholarly journals Capacity cost structure, welfare and cost recovery: Are transport infrastructures with high fixed costs a handicap?

2009 ◽  
Vol 43 (5) ◽  
pp. 506-521 ◽  
Author(s):  
Bruno De Borger ◽  
Fay Dunkerley ◽  
Stef Proost
Keyword(s):  
Cost Structure ◽  
Cost Recovery ◽  
Fixed Costs ◽  
Capacity Cost

scholarly journals Major Reforms in Electricity Pricing: Evidence from a Quasi-Experiment

2021 ◽  
Author(s):  
Xavier Labandeira ◽  
José M Labeaga ◽  
Jordi J Teixidó
Keyword(s):  
Power Industry ◽  
Cost Structure ◽  
Cost Recovery ◽  
Fixed Cost ◽  
Electricity Pricing ◽  
Global Energy ◽  
Marginal Costs ◽  
Price Reform ◽  
Robust Evidence ◽  
Quasi Experiment

Abstract The global energy mix and cost structure of the power industry are experiencing a redefinition. Many countries are revamping electricity-pricing systems to guarantee fixed-cost recovery, often by raising the fixed charge of two-part tariff schemes. However, a key assumption of two-part tariff schemes and associated fixed cost recoveries is that consumers discriminate fixed from marginal costs. We conduct a quasi-experiment with data from a major electricity price reform recently implemented in Spain and find robust evidence indicating that consumers fail to distinguish between fixed and marginal costs. As a result, policymakers are not achieving the goal of cost recovery

scholarly journals Constructing a new cost structure using time-driven activity-based costing for replanting at palm oil plantation

2021 ◽  
Vol 7 (1) ◽  
pp. 55-69
Author(s):  
Sri Nur Areena Mohd Zaini ◽  
Mohd Yazid Abu
Keyword(s):  
Palm Oil ◽  
Capacity Planning ◽  
Cost Structure ◽  
Activity Based Costing ◽  
Cost Rate ◽  
Practical Capacity ◽  
Systematic Development ◽  
Set Up ◽  
Unused Capacity ◽  
Capacity Cost

The palm oil industry in Malaysia is undeniably the pride of the country. However, in this plantation there are currently few issues which do not set up a time equation to interpret the variance of activities, the rate setting did not illustrate the correlation between the resources provided and the practical capacity, and the manager had no tool in place to monitor the unused capacity. In order to increase precision in the field of palm oil plantation, this work aims to develop a new cost structure. Time-driven activity-based costing (TDABC) has been introduced because it allows time output to be efficiently assessed, the idle capacity accurately defined, and the unused capacity separately to be recorded. This provides an overview of functional tools and their associated costs as well as measurement methods and facilitates quality improvement. This work focused only on replanting field and the plantation located in Pahang. The maximum replanting capacity cost rate (CCR), with 288600 minutes and 0.106 RM / minute, was subsequently successfully developed. Finally, the manager can observe that 68358.45 minutes of utilized capacity could be used for the systematic development of replanting capacity planning.

scholarly journals ANALISIS BIAYA DAN PENDAPATAN USAHA PEDAGANG SAYURAN DI PASAR TAMIN KOTA BANDAR LAMPUNG

2019 ◽  
Vol 6 (3) ◽  
pp. 288
Author(s):  
Romidah Astuti ◽  
Wan Abbas Zakaria ◽  
Teguh Endaryanto
Keyword(s):  
Income Level ◽  
Cost Structure ◽  
Variable Cost ◽  
Fixed Cost ◽  
Fixed Costs ◽  
Average Income ◽  
Total Cost ◽  
Qualitative And Quantitative ◽  
The Cost ◽  
Business Cost

This study aims to analyze the cost structure and the income level of vegetable traders in Tamin Market Bandar Lampung City. This research is conducted in purposively chosen Tamin Market with the consideration that Tamin Market is a center of vegetable trade and the main market in Bandar Lampung City.  The data were collected in March 2017 and respondents were 15 vegetable traders who are willing to be interviewed, consisting of five stall traders, five los traders, and five street traders.  Data are analyzed descriptively using qualitative and quantitative of cost and income analysis. The result showed that the traders' business cost structure consists of fixed cost and variable cost.  The propotion of variable cost is higher than the fixed cost, which is 99 percent of total cost. Variable costs include plastic cost, vegetable purchase, transport, labor, and information.  And fixed costs include rent cost, electricity and market facility fees. The average income of stall traders is higher than the loser traders and the street traders. The average income of stall traders is Rp817,055.00 per day, los traders is Rp737,604.00 per day, and street traders is Rp183,455.00 per day.Key words: cost structure, the level of income, vegetable traders

Optimal hedging of options with small but arbitrary transaction cost structure

1999 ◽  
Vol 10 (2) ◽  
pp. 117-139 ◽  
Author(s):  
A. E. WHALLEY ◽  
P. WILMOTT
Keyword(s):  
Asymptotic Analysis ◽  
Transaction Cost ◽  
Stochastic Control ◽  
Simple Expression ◽  
Cost Structure ◽  
Fixed Costs ◽  
Optimal Point ◽  
Underlying Asset ◽  
Black Scholes ◽  
Order Of Magnitude

In this paper we consider the problem of hedging options in the presence of cost in trading the underlying asset. This work is an asymptotic analysis of a stochastic control problem, as in Hodges & Neuberger and Davis, Panas & Zariphopoulou;. We derive a simple expression for the ‘hedging bandwidth’ around the Black–Scholes delta; this is the region in which it is optimal not to rehedge. The effect of the costs on the value of the option, and on the width of this hedging band is of a significantly greater order of magnitude than the costs themselves. When costs are proportional to volume traded, rehedging should be done to the edge of this band; when there are fixed costs present, trading should be done to an optimal point in the interior of the no-transaction region.

scholarly journals The impact of economic crisis on cost structure configuration

2021 ◽  
Vol 10 (1) ◽  
pp. 87-94
Author(s):  
Odysseas Pavlatos
Keyword(s):  
Empirical Study ◽  
Economic Crisis ◽  
Economic Recession ◽  
Jel Classification ◽  
Cost Structure ◽  
Fixed Costs ◽  
Manufacturing Companies ◽  
The Impact ◽  
Structure Configuration

The objective of this study is to examine the impact of economic crisis on cost structureconfiguration of companies. For this reason, an empirical study in the form of online surveyhas been carried out in 82 Greek manufacturing companies. We received data from two periodsof great economic recession, namely during fall of 2013 and spring of 2015. Results indicatedthat companies most affected by the economic crisis, replaced fixed costs with variable ones.Cost structure configuration is the “tool” that companies used to limit the consequences of thecrisis in their profitability.   Keywords: economic crisis, cost structure, fixed costs, variable costs.     JEL classification numbers:  M20, M21, M42  

scholarly journals Research on European capacity cost recovery mechanism and its experience to China’s power market construction

2021 ◽  
Vol 769 (4) ◽  
pp. 042106
Author(s):  
Yuhui Xing ◽  
Maolin Zhang ◽  
Xiangrui Liu ◽  
Qinggui Chen ◽  
Chunfeng Mu ◽  
...  
Keyword(s):  
Power Market ◽  
Cost Recovery ◽  
Recovery Mechanism ◽  
Capacity Cost ◽  
Market Construction

Cost Structure and Sticky Costs

2014 ◽  
Vol 26 (2) ◽  
pp. 91-116 ◽  
Author(s):  
Ramji Balakrishnan ◽  
Eva Labro ◽  
Naomi S. Soderstrom
Keyword(s):  
Cost Structure ◽  
Future Research ◽  
Fixed Costs ◽  
Short Term ◽  
Administrative Costs ◽  
Long Run ◽  
Short Run ◽  
Asymmetric Cost ◽  
Empirical Tests ◽  
Cost Stickiness

ABSTRACT Beginning with Anderson, Banker, and Janakiraman (2003), a rapidly growing body of literature attributes the short-run asymmetric cost response to activity changes (i.e., sticky costs) resulting from short-run managerial choices. In this paper, we are agnostic on the theory of sticky costs. Rather, we focus on empirical tests of cost stickiness. We show that past decisions on cost structure, which determine the magnitude of costs controllable in the short-term, induce non-stationarity in the elasticity of Sales, General, and Administrative costs, affecting the interpretation of estimates from the standard specification used in the literature. We develop suggestions for how future research might control for the effects of cost structure. Empirically, we find that cost structure confounds results usually interpreted as cost stickiness reflecting short-run managerial actions. After adjusting for the effects of fixed costs, we find that the results are unstable across alternate subsamples. Our results provide evidence that long-run cost structure decisions impact our ability to detect short-term cost management decisions. JEL Classifications: M41; L42

Suppliers' Product Market Competition, Customer Concentration, and Cost Structure

2020 ◽  
Author(s):  
Hsihui Chang ◽  
Curtis M. Hall ◽  
Michael T. Paz
Keyword(s):  
Market Competition ◽  
Product Market ◽  
Downside Risk ◽  
Manufacturing Firms ◽  
Cost Structure ◽  
Product Market Competition ◽  
Cost Data ◽  
Fixed Costs ◽  
Trade Off ◽  
The Relationship

We examine how suppliers' product market competition influences the relation between customer concentration and cost structure. Analyzing cost data from a sample of manufacturing firms, we find that suppliers exhibit more rigid cost structure when both product market competition and customer concentration are high. In further analysis, we find that the effect of competition on the relationship between customer concentration and cost structure is isolated to the COGS and COGM. Our results suggest that suppliers trade off the downside risk of having fixed costs that cannot be reassigned with the potential upside benefit of meeting major customer demands.

scholarly journals Investment Incentives and Electricity Market Design: the British Experience

2005 ◽  
Vol 4 (2) ◽  
Author(s):  
Fabien A. Roques ◽  
David M. Newbery ◽  
William J. Nuttall
Keyword(s):  
Electricity Market ◽  
Market Design ◽  
Cost Recovery ◽  
Reserve Capacity ◽  
Investment Incentives ◽  
Market Failures ◽  
Electricity Trading ◽  
British Experience ◽  
Capacity Cost ◽  
Price Spikes

There is no academic consensus on which electricity market design provides the least distorting investment incentives. Theory suggests that "energy-only market" can allow capacity cost recovery by generators. However, separate payments for capacity or reserve obligations do not need to rely on infrequent price spikes to remunerate reserve capacity. Three years after the controversial change from the compulsory British Electricity Pool with capacity payments to the decentralised energyonly New Electricity Trading Arrangements (NETA), we contrast the two market designs in terms of investment incentives, analyse NETA's balancing market failures, and review the case for regulatory support for investment.

Sign in / Sign up

Export Citation Format

Share Document