How to optimize the cost and time of the acquisitions process?

2015 ◽  
Vol 34 (2) ◽  
pp. 41-50 ◽  
Author(s):  
Kate-Riin Kont
Keyword(s):  
Relevant Literature ◽  
Optimization Methods ◽  
Activity Based Costing ◽  
University Libraries ◽  
New Developments ◽  
Content Type ◽  
Cost System ◽  
Cost Behavior ◽  
The Cost ◽  
Print Format

Purpose – The purpose of this paper is to focus on the history and new developments of the optimization and analysis of acquisitions costs. More specifically, the acquisition cost and time optimization methods studied concern primarily print format books. Though e-books have begun to be developed more and more, the print format books – both scientific books and textbooks – are still very important for university libraries and continue to pour into acquisition activities. Design/methodology/approach – The data used in this paper are based on a review of relevant literature to provide an overview of the different concepts of the budget allocation and cost accounting methods suitable for the optimizing cost and time of the acquisition process. Different methods are described via reviewing example studies. Findings – On the basis of the current study, it can be said that the acquisitions procedure is more labor-intensive than any other library procedure both historically and nowadays. Nonetheless, the routines of acquisitions have been fairly well fixed over the years and constantly have searched for new ways to reduce costs. The most popular methods to control the acquisitions budget have been centralized and cooperative acquisitions, using vendors for acquiring library materials, customer-based acquisitions, and price indexes. New costing methods described, like activity-based costing and time-driven activity-based costing methodologies seem both to be the best tools for understanding acquisitions cost behavior and for refining a cost system for university libraries. Originality/value – This paper raises a perspective in library acquisitions management that has not been dealt with before. Namely, it explores how the library materials selection moved from intrinsic wisdom of bookish librarians and “just in case” inventory model to “purchase by customer suggestion” model. In addition, how libraries moved from acting on the basis of guesses to examine the cost breakdown of the acquisitions-related activities in a library.

What do acquisition activities really cost? A case study in Estonian university libraries

2015 ◽  
Vol 36 (6/7) ◽  
pp. 511-534 ◽  
Author(s):  
Kate-Riin Kont
Keyword(s):  
Relevant Literature ◽  
Cost Accounting ◽  
Activity Based Costing ◽  
University Libraries ◽  
Content Type ◽  
Acquisition Process ◽  
Cost Behavior ◽  
The Difference ◽  
Acquisition Processes

Purpose – The purpose of this paper is to mainly find out how well is time-driven activity-based costing (TDABC) suits for a university library setting in Estonia. For this purpose, all activities related to acquisitions process were identified and recorded in detail, and the cost of all these activities related to acquisition process in Estonian university libraries based on the example of the TDABC method were anlyzed. Design/methodology/approach – The data used in this paper is based on a review of relevant literature to provide an overview of the concept of the different cost accounting methods suitable for the measurement of the acquisition process. Through a case study, conducted among Estonian university libraries, the TDABC approach was used to analyze the acquisition process in university libraries. More specifically, the acquisition process studied concerned print format books, audiovisual documents and sheet music, and covered acquisition processes such as receipt of orders, ordering documents, communication with bookshop (if necessary), receiving documents and communication with the customer. Findings – On the basis of the current study it can be said the TDABC methodology seems to be one of the best tools for understanding cost behavior and for refining a cost system for university libraries. While analyzing the results, it appeared that the difference in time and cost for acquiring a document can be remarkable and concerns both – acquiring foreign documents (documents from other countries) and acquiring domestic documents, and between the university libraries chosen for the current study. Originality/value – The subject of cost accounting as a performance measurement method is in general an unexplored field in Estonian university libraries. Time guidelines for acquiring the documents were, however, quite common in the 1980s in the USSR, including Estonia. Soviet-wide regulatory documents were issued on all library work processes, but each library could still implement their own rules. In the 1990s, the regulations were consigned to oblivion. Very few cost surveys involving different library activities have been carried out in Estonia and none have been published. Where such studies have been conducted, the results remain for internal use only.

scholarly journals Primary Research of the Advantages and the Cost Control of the ABC & EVA Integrated System

2010 ◽  
Vol 3 (3) ◽  
pp. 141
Author(s):  
Haibo Hu
Keyword(s):  
Cost Control ◽  
Control Strategies ◽  
Economic Value ◽  
Value Added ◽  
Capital Cost ◽  
Integrated System ◽  
Activity Based Costing ◽  
Cost System ◽  
Integrated Cost ◽  
The Cost

The integrated product of Activity-Based Costing (ABC) and Economic Value Added (EVA) is the ABC & EVA system, i.e. the integrated cost system. Traditional ABC method gives priority to the interior activity chain of enterprise to implement the cost analysis, but ignores the capital cost, so the cost accounting is not complete. The ABC & EVA system brings the capital cost into the cost management, which could not only open out the real economic value created by the cost objects, but extend the pure cost computation of ABC to the performance evaluation. Based on the principle of the ABC & EVA system, the enterprise cost control strategies under the integrated cost system are proposed.

Organization of work in Estonian university libraries: a review and survey

2014 ◽  
Vol 115 (9/10) ◽  
pp. 452-470
Author(s):  
Kate-Riin Kont ◽  
Signe Jantson
Keyword(s):  
Online Survey ◽  
Task Complexity ◽  
Relevant Literature ◽  
Work Organization ◽  
Work Load ◽  
University Libraries ◽  
Job Descriptions ◽  
Organization Of Work ◽  
Content Type ◽  
Job Duties

Purpose – The aim of the current article is to investigate satisfaction of the staff of Estonian university libraries with the organization of work by analyzing characteristics, aspects and dimensions of the work, such as self-realization and skills realization opportunities, task complexity, task interdependence and fair division of tasks. Design/methodology/approach – The data used in this paper is based on a review of relevant literature to provide an overview of the concept of work organization, and the results of the original online survey created by the paper’s authors, conducted among Estonian university libraries. The results are interpreted on the basis of direction in the literature, and the authors’ opinions, based on our long-term working experience in Estonian academic libraries. Findings – Although a number of Estonian university librarians were mostly satisfied with the division of labor within their departments, the respondents feel that duties in the library as a whole should be reorganized and workloads should be divided more equally. Almost half of the respondents have performed (in addition to their main job) duties that are not included in their job descriptions. Originality/value – To the best of the authors’ knowledge, no research has been previously carried out in the Estonian library context into work organization and coordination. Based on the current study, it can be concluded that the biggest challenge for university libraries in Estonia is to fixate clearly job descriptions and work procedures, divide job duties fairly and guarantee balanced work load. Additional duties should be accompanied with additional remuneration.

Dealing with the visibility created by accounting numbers – A case study of cost accounting translation in a transitional economy

2020 ◽  
Vol 10 (2) ◽  
pp. 277-303
Author(s):  
Catalin Nicolae Albu ◽  
Nadia Albu ◽  
Flavius Andrei Guinea ◽  
Mathew Tsamenyi
Keyword(s):  
Decision Making ◽  
Management Accounting ◽  
Actor Network Theory ◽  
Unintended Consequences ◽  
Content Type ◽  
Construction Companies ◽  
Cost System ◽  
Costing System ◽  
State Taxation ◽  
The Cost

PurposeThis paper investigates the process of translating a costing tool into operational use in the context of a transitional (post-communist) economy, where local institutions challenge the rationality of western methods.Design/methodology/approachBy mobilizing Actor–Network Theory, in particular Callon's four moments of translation, and by drawing data from an interventionist research, the paper focuses on the process of change instilled by the implementation of a costing tool in 20 Romanian construction companies.FindingsThe costing system is initially problematized as a tool for rational decision making. However, the visibility over the accounting figures generated by the costing tool instilled new roles for the cost system to manage internal and external interdependencies. First, two costing datasets were created, one for decision making and one for tax purposes, to manage the relationship with the state taxation authorities. Second, since the costing tool generated visibility over the field practices as well, engineers convinced management to drop the decision-making set of costs. The costing tool ultimately only became used for tax optimization, an originally unintended use, reflecting its translation process.Research limitations/implicationsBy taking an interventionist approach, the paper contributes to theorizing accounting in transitional economies by bringing their economic idiosyncrasies into the analysis.Practical implicationsThe results inform managers about the intended and unintended consequences of management accounting tools and about actors' role in shaping their use.Originality/valueOur research responds to recent calls to study how organizations configure their control systems in a rapidly changing environment and what is the role of management accounting in these arrangements.

Explaining implementation difficulties associated with activity-based costing through system uses

2018 ◽  
Vol 19 (1) ◽  
pp. 181-198 ◽  
Author(s):  
Elodie Allain ◽  
Claude Laurin
Keyword(s):  
Resistance To Change ◽  
Insurance Industry ◽  
Insurance Company ◽  
Activity Based Costing ◽  
General Applicability ◽  
Content Type ◽  
Cost System ◽  
Scope Of Application ◽  
Costing System

Purpose The purpose of this paper is to explore how and why the uses (enabling or controlling) of an activity-based costing system could cause difficulties in implementing such a cost system. Design/methodology/approach The authors conducted a case study in a French insurance company. Three successive research periods were undertaken: from March to August 2005, between October 2008 and June 2009, and in 2012. In total, 51 interviews were conducted during these periods. Other useful information was also collected through conversations, observation, and through the consultation of internal documents. Findings The results show that designing a cost system aimed at being simultaneously used in controlling and enabling ways can generate important difficulties. Furthermore, the results show that attempting to get around these difficulties could result in investing significant amounts of resources with no guarantee of success. Research limitations/implications Beyond the difficulties of extending the scope of application of case studies, the study was conducted in an organization involved in the insurance industry which could further limit its general applicability. Practical implications Based on the experience at Rassura, the authors argue that managers should be aware that designing and implementing a cost system that can simultaneously be used in both controlling and enabling ways is a very difficult, if not an insurmountable challenge. Originality/value The results highlight that one important characteristic of a cost system, how it is used, could explain, at least partially, implementation difficulties related to technical challenges, resistance to change and lack of resources.

Aras Design and Multimedia Centre (ADMC): it’s pricing strategy for video internet market training

2016 ◽  
Vol 6 (3) ◽  
pp. 1-11
Author(s):  
Rohaida Basiruddin ◽  
Siti Uzairiah Mohd. Tobi ◽  
Farzana Quoquab
Keyword(s):  
Marketing Strategy ◽  
Early Years ◽  
Pricing Strategy ◽  
Small Scale ◽  
Basic Training ◽  
Managerial Accounting ◽  
Content Type ◽  
Income Statement ◽  
Cost Behavior ◽  
The Cost

Subject area Managerial Accounting, Strategic Marketing. More specifically, cost behavior, cost estimation, cost prediction, cost-volume-profit (CVP) analysis, contribution income statement and pricing/promotional strategy. Study level/applicability This case is suitable to be used in advanced undergraduate level. Case overview This case demonstrates the issues relating to pricing strategy of “Video Internet Marketing Training”. Diyana Tahir and her husband, Abdul Rahim Abdul Shukor, established Aras Design & Multimedia Centre (ADMC) on January 17, 2009. The main office was located at Kuala Lumpur. Diyana was a well-known name in the field of internet video marketing training. In its early years, ADMC’s operation was limited to providing printing and graphic design services and offering printing materials for photocopy. However, with the passage of time, the company began to expand its services and offerings. At the beginning of 2010, ADMC offered editing facilities and services for video and multimedia in addition to its core services. As a unique marketing strategy, Diyana offered RM30 as the basic training fee for each participant, which was equivalent to RM470 value offered. In this way, she attracted customers to take part in further advanced level training that was conducted by ADMC. However, she felt that the number of participant to take advanced training was not satisfactory. She thought that it happened perhaps due to the fact that the participants were not much committed to the course since it was offered at a nominal price. Furthermore, she realized that the cost of providing such training had risen in the past six months. Currently, ADMC suffered losses in three consecutive months, and they really needed enough cash to sustain. As such, Diyana was thinking to reconsider the offered course fees whether to increase it. She was in a rush to make a decision to propose the new course fee in the monthly meeting with management committee at the end of April 2013. Expected learning outcomes Using this case, students can learn how a small-scale company can strategize its pricing strategy to survive in the highly competitive online market. The objectives of using this case are as follows: to help students in understanding the interrelationships between CVP in organization that can be used for future planning and decision-making; to be able to identify the cost structure of the basic training course (e.g. fixed and variable costs), determine the contribution margin, break-even point and prepare the contribution income statement that highlighting cost behavior; to help students to think critically while setting the price for the offered services; to develop students’ ability in analyzing the existing situation to come up with a viable and effective solution; to assist students in taking the right move in a right time; to broaden students’ views and understanding in considering the monetary aspect along with the human aspect in formulating an effective marketing strategy; to develop students’ understanding of the way to retain and attract customers through innovative pricing strategy; and to make students aware that innovation is the key to business success. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject codes CSS 1: Accounting and Finance.

scholarly journals Application of the Activity-Based Costing Method for Unit-Cost Calculation in a Hospital

2015 ◽  
Vol 8 (1) ◽  
pp. 165 ◽  
Author(s):  
Mahdi Javid ◽  
Mohammad Hadian ◽  
Hossein Ghaderi ◽  
Shahram Ghaffari ◽  
Masoud Salehi
Keyword(s):  
Unit Cost ◽  
Cost Price ◽  
Medical Services ◽  
Cost Calculation ◽  
Accounting System ◽  
Activity Based Costing ◽  
Hospital Managers ◽  
Cost System ◽  
Abc Method ◽  
The Cost

<p><strong>BACKGROUND:</strong> Choosing an appropriate accounting system for hospital has always been a challenge for hospital managers. Traditional cost system (TCS) causes cost distortions in hospital. Activity-based costing (ABC) method is a new and more effective cost system.</p> <p><strong>OBJECTIVE:</strong> This study aimed to compare ABC with TCS method in calculating the unit cost of medical services and to assess its applicability in Kashani Hospital, Shahrekord City, Iran.‎</p> <p><strong>METHODS:</strong> This cross-sectional study was performed on accounting data of Kashani Hospital in 2013. Data on accounting reports of 2012 and other relevant sources at the end of 2012 were included. To apply ABC method, the hospital was divided into several cost centers and five cost categories were defined: wage, equipment, space, material, and overhead costs. Then activity centers were defined. ABC method was performed into two phases. First, the total costs of cost centers were assigned to activities by using related cost factors. Then the costs of activities were divided to cost objects by using cost drivers. After determining the cost of objects, the cost price of medical services was calculated and compared with those obtained from TCS.‎</p> <p><strong>RESULTS:</strong> The Kashani Hospital had 81 physicians, 306 nurses, and 328 beds with the mean occupancy rate of 67.4% during 2012. Unit cost of medical services, cost price of occupancy bed per day, and cost per outpatient service were calculated. The total unit costs by ABC and TCS were respectively 187.95 and 137.70 USD, showing 50.34 USD more unit cost by ABC method. ABC method represented more accurate information on the MAJOR COST COMPONENTS.</p> <p><strong>CONCLUSION:</strong> By utilizing ABC, hospital managers have a valuable accounting system that provides a true insight into the organizational costs of their department.<strong></strong></p>

Penentuan Tarif Layanan Kesehatan Gigi dan Mulut dengan Metode Activity Based Cost System

2019 ◽  
Vol 14 (2) ◽  
pp. 72
Author(s):  
Dinik Fitri Rahajeng Pangestuti ◽  
Indah Purbasari
Keyword(s):  
Health Care ◽  
Primary Health Care ◽  
Oral Health ◽  
Cost Driver ◽  
Activity Based Costing ◽  
Accounting Systems ◽  
Cost System ◽  
Primary Health ◽  
The Cost

Background: The result of the morbidity report at 2001, shown that dental and oral health in Indonesia is still become public complaint, it is around 60%, such as dental caries and periodontal disease. Dental public health effort to date has yet to be run with optimal due to various constraints, including: limitations of the power, the means of operating costs as well as social and economic conditions of society. Considering these constraints have developed a model of services in the form of a layered service (level of care) according to existing resources, in the form of Primary Health Care (PHC). But this time the tariff is determined by hospitals, especially the private hospitals are still considered high by most of society. In determining the cost of products as the basis for determining the price of the hospital sometimes still use traditional accounting systems that pricing anyway no longer reflects the activity because of the many categories that are not direct. The main difference between the calculation of the product cost of goods of traditional cost accounting by activity-based costing is the amount of cost driver (trigger) is used. In the determination of cost of products with activity-based costing uses the cost drivers in the sum more than in traditional cost accounting systems that use only one or two cost drivers based on the unit.Objective: To determine the differences between determination of dental and oral health service tariff by using Activity Based Cost System and traditional method.Methods: This research was a case study research and how to collect data from the financial reporting RSUD Panembahan Senopati Bantul about patient visits for examination in dental health polyclinic. Results: The results of this research were the determination of the tariff model of oral health services by using Activity-Based Cost systems, as well as a comparison between traditional fare tariffs and tariff system for Activity Based Cost System. Keywords: tariff, dental and oral health, Primary Health Care, activity based costing, cost driver.

scholarly journals Using activity-based costing and simulation to reduce cost at a police communications centre

2017 ◽  
Vol 40 (2) ◽  
pp. 426-441 ◽  
Author(s):  
Andrew Greasley ◽  
Chris M. Smith
Keyword(s):  
Discrete Event ◽  
Cost Savings ◽  
Vital Role ◽  
National Standards ◽  
Activity Based Costing ◽  
Content Type ◽  
Service Levels ◽  
Event Simulation ◽  
Timely Response ◽  
The Cost

Purpose This study is based at a police force’s communications centre which undertakes a vital role in receiving and processing emergency and non-emergency telephone calls from the public and other agencies. The purpose of this paper is to evaluate a method for addressing the conflict between the need to reduce cost and the requirement to meet national standards in terms of a timely response to customer calls. Design/methodology/approach In a two-stage methodology an activity-based costing (ABC) approach is used as a framework to show how costs are generated by the three “drivers” of cost which relate to the design efficiency of the process, the demand on the process and the cost of resources used to undertake the process. The study then provides an analysis from a resource driver perspective using discrete-event simulation to model workforce staffing scenarios. Findings Cost savings within the police communications centre are identified from an analysis of the three drivers of cost. Further analysis from a resource driver viewpoint using a simulation study of an alternative workforce schedule predicted an overall reduction in staffing cost of 9.4 per cent. Originality/value The study outlines an innovative method that identifies where cost can be reduced using ABC and then provides an assessment of strategies that aim to reduce cost whilst maintaining service levels in a police operation using simulation.

To buy or to borrow? Evaluating the cost of an eBook in TalTech library

2020 ◽  
Vol 33 (1) ◽  
pp. 74-93
Author(s):  
Kate-Riin Kont
Keyword(s):  
Large Scale ◽  
Statistical Data ◽  
Background Information ◽  
Activity Based Costing ◽  
Short Term ◽  
Content Type ◽  
Central Platform ◽  
Cost Behaviour ◽  
Usage Cost ◽  
The Cost

Purpose The purpose of this paper is to find out how much the purchasing and lending of individual electronic books really cost. Additionally, this paper investigates which kind of approach would be cheaper and less time-consuming for library staff as well as library patrons – purchase or short-term loan. Design/methodology/approach This study was conducted at the Tallinn University of Technology (TalTech) Library. This is the only university library in Estonia where the Ebook Central platform is adapted on a large scale. For background information, all statistical data of expenditures and average prices of purchases and short-term loans during April 2013 and December 2018 were calculated and analysed. Through a case study, the time-driven activity-based costing (TDABC) method was used – all activities related to acquisition and lending of eBooks were identified, recorded in detail and analysed. More specifically, the study concerned eBooks offered in the Ebook Central platform and covered purchasing and short-term loan processes, such as receipt of order request, communication with the patron (if necessary) making a purchase or short-term loan, and feedback to the patron. Findings While analysing the results, it appeared there are many additional activities libraries can avoid during the eBook short-term loan process compared to purchasing. As a normality in TalTech library, purchase is always followed by a cataloguing process which increases the time and cost of this process in turn. On the basis of the current study, it can be said that short-term loan is a cheaper way to use eBooks; many activities related to the short-term loan of eBooks take remarkably less staff time and financial resources than eBooks acquisition/purchasing activities. When analysing the literature reviewed as well as collected statistical data, the problem may arise when the decision-maker librarian is not experienced, professional or long-sighted enough to understand the future behaviour of the patron or the usage of the specific eBook. When the usage reaches a certain point, it becomes an indicator of continuing future usage and so it makes sense to purchase the eBook, as the library pays no further charges once an eBook is owned. Originality/value Most studies reviewed by the author are based on the statistical data collected about expenditure, costs, usage, cost-per-use, etc. of short-term loans and purchases. While acquisitions costs, average cost per acquired item per year and cost per usage are easy to identify, it has been difficult to measure associated costs of acquisition, cataloging and circulation. The TDABC methodology seems to be one of the best tools for understanding cost behaviour and refining a cost system for university libraries. Based on the information known to the author, there is no study carried out using the TDABC methodology for analysing costs of eBook programmes.

Sign in / Sign up

Export Citation Format

Share Document