Time Is Relative: How Framing of Time Estimation Affects the Accuracy of Cost Information

2021 ◽  
Author(s):  
Karl Schuhmacher ◽  
Michael Burkert
Keyword(s):  
Estimation Error ◽  
Capacity Utilization ◽  
Time Estimation ◽  
Subjective Time ◽  
Activity Based Costing ◽  
Cost Information ◽  
The Difference ◽  
Response Modes ◽  
Different Response ◽  
Productive Time

Accurate cost information is critical to effective decision making within organizations. Cost computations often rely on subjective judgments by employees regarding the amount of time that different tasks consume. In an experimental setting, we examine the accuracy of two common approaches to eliciting subjective time estimates vital for accurate cost information. Specifically, we compare estimation error when employees estimate (i) the total time for all iterations of a task (the pool approach) versus (ii) the average time for one iteration of a task (the unit approach). These two approaches have received interest by both practitioners and researchers and are at the heart of the difference between conventional activity-based costing (ABC) and time-driven ABC. While mathematically equivalent, we hypothesize and find that the two approaches evoke different cognitive processes that lead to differences in estimation error. Relative to the unit approach, the pool approach produces larger error in the allocation of time among different tasks, but only when the number of iterations per task varies across tasks. Further, the pool approach results in overestimation of productive time, whereas the unit approach leads to underestimation of productive time. Our findings are robust to different response modes of the pool approach (estimates in absolute time units and in percentages). This study is relevant for designers and users of cost and performance-measurement systems in that allocation errors lead to cost cross-subsidization and poor resource-allocation decisions, while overall errors undermine capacity utilization decisions. This paper was accepted by Brian Bushee, accounting.

scholarly journals PENERAPAN TIME-DRIVEN ACTIVITY-BASED COSTING PADA PERHITUNGAN HARGA POKOK PRODUK USAHA JASA UNIXON

2017 ◽  
Vol 11 (1) ◽  
pp. 12-31
Author(s):  
Astrid Anastasya Jovanka ◽  
L Jade Faliany
Keyword(s):  
Government Regulation ◽  
Capacity Utilization ◽  
Activity Based Costing ◽  
Cost Information ◽  
Time Consumption ◽  
Consumption Ratio ◽  
Using Data ◽  
The Cost ◽  
Research Show

The purpose of this paper is to calculate branding consultant cost using Time-Driven Activity-Based Costing (TDABC). TDABC calculate cost based on activity that is controlled by time. The method that is used in this research is a case study in Unixon, a small business that works in the field of branding, using data from 2016. Interviews were conducted. The cost and activity database was analyzed. The results of this research show that TDABC can be applied in this Company because it qualified the requirements; diversity in product and different time consumption ratio for each product. TDABC provided more accurate cost information by calculating all costs; cost to make and cost to sell. Implementation of TDABC also show time capacity utilization by comparing actual labor hours and work hours that is controlled by government regulation. By understanding this condition, the owner is able to evaluate the amount of job that is done, time consumption, and employee who is involved. To implement TDABC, the Company must consider each steps needed from identifying activity, assign cost to activity, calculate tariff per activity, to calculate cost of product.

scholarly journals FORMALIZING PRODUCT COST DISTORTION: The Impact of Volume-Related Allocation Bases on Cost Information

2003 ◽  
Vol 5 (3) ◽  
pp. 381
Author(s):  
Johnny Jermias
Keyword(s):  
Indirect Costs ◽  
Positive Association ◽  
Activity Based Costing ◽  
Cost Information ◽  
Product Cost ◽  
Product Costing ◽  
Size Diversity ◽  
The Difference ◽  
The Impact ◽  
As If

The purpose o f this study is to formally analyze product cost distortions resulting from the process of allocating costs to products based on Activity-Based Costing (ABC) and the conventional product costing systems. The model developed in this paper rigorously shows the impact of treating costs that are not volume related as if they are. The model demonstrates that the source of product cost distortion is the difference between the proportion of driver used by each product in ABC and the proportion of the base used by the same product in the conventional costing systems. The difference arises because the conventional costing systems ignore the existence of batch-related and product-related costs. The model predicts a positive association between volume and size diversity with product cost distortions. When interaction between volume and size diversity exists, the distortion is either mitigated or exacerbated. The magnitude of the distortion is jointly determined by the size of the differences and the size of the total indirect costs.

Temporal Prediction Errors Affect Short-Term Memory Scanning Response Time

2016 ◽  
Vol 63 (6) ◽  
pp. 333-342
Author(s):  
Roberto Limongi ◽  
Angélica M. Silva
Keyword(s):  
Response Time ◽  
Short Term Memory ◽  
Estimation Error ◽  
Predictive Coding ◽  
Time Estimation ◽  
Prediction Errors ◽  
Memory Scanning ◽  
Short Term ◽  
Term Memory ◽  
Temporal Prediction

Abstract. The Sternberg short-term memory scanning task has been used to unveil cognitive operations involved in time perception. Participants produce time intervals during the task, and the researcher explores how task performance affects interval production – where time estimation error is the dependent variable of interest. The perspective of predictive behavior regards time estimation error as a temporal prediction error (PE), an independent variable that controls cognition, behavior, and learning. Based on this perspective, we investigated whether temporal PEs affect short-term memory scanning. Participants performed temporal predictions while they maintained information in memory. Model inference revealed that PEs affected memory scanning response time independently of the memory-set size effect. We discuss the results within the context of formal and mechanistic models of short-term memory scanning and predictive coding, a Bayes-based theory of brain function. We state the hypothesis that our finding could be associated with weak frontostriatal connections and weak striatal activity.

Different response modes and cooperation modulations of blue‐light receptors in photomorphogenesis

2021 ◽  
Author(s):  
Yuning Wu ◽  
Qin Wang ◽  
Jing Qu ◽  
Wen Liu ◽  
Xuejuan Gao ◽  
...  
Keyword(s):  
Blue Light ◽  
Response Modes ◽  
Different Response

Abstract 17321: Race Differences in Hemodynamic Responses to Acute Mental Stress and the Role of Depressive Symptoms

Circulation ◽  
2014 ◽  
Vol 130 (suppl_2) ◽  
Author(s):  
Kobina A Wilmot ◽  
Ibhar Al Mheid ◽  
Ronnie Ramadan ◽  
Pratik M Pimple ◽  
Amit J Shah ◽  
...  
Keyword(s):  
Blood Pressure ◽  
Depressive Symptoms ◽  
African Americans ◽  
Mental Stress ◽  
Rate Pressure Product ◽  
Hemodynamic Responses ◽  
Explanatory Role ◽  
The Difference ◽  
Hemodynamic Reactivity ◽  
Different Response

Introduction: Increased hemodynamic responses to psychological stress have been associated with adverse CAD events. African Americans (AA) have worse CAD outcomes than other groups. Heightened hemodynamic responses to stress may play a role. Our hypothesis was that AA would have higher hemodynamic reactivity to a standardized mental stress compared to Non-African Americans (NAA). Methods: We evaluated 574 patients (163 AA) with CAD, who underwent a standardized mental stress challenge. Hemodynamics were obtained at rest, during stress (speaking task), and during recovery. The rate-pressure product (RPP) was calculated as systolic blood pressure (SBP) x heart rate (HR). Hemodynamic reactivity was evaluated as the difference in RPP at rest and during stress. Depressive symptoms were measured with the Beck Depression Inventory-II (BDI). Results: As compared to NAA, AA patients were younger, had lower education and income, and higher prevalence of diabetes, obesity, hypertension, smoking, and depressive symptoms (BDI mean scores 9.8 vs. 7.6, p= 0.003). AA patients had higher blood pressure during all three periods (Table). However, hemodynamic reactivity with stress was significantly lower in AA than NAA (RPP reactivity 3114 vs 3620, p= 0.02). Adjusting for baseline RPP, age, gender and smoking did not substantially alter the association. However, after adjusting for depressive symptoms, the association was attenuated by 23% (p=0.16). BMI, diabetes and beta-blocker use had minimal additional explanatory role. In the final model, baseline RPP, depressive symptoms and BMI were significantly associated with a lower RPP reactivity (p<0.01). Conclusion: AA patients with CAD, compared with NAA, have elevated blood pressure throughout mental stress, but tend to have blunted hemodynamic reactivity to stress. Depressive symptoms, which are more elevated among AA, play a role in this different response to stress and may be implicated in the higher CAD risk of this group.

Simulation and ABC to Improve the Performance of Emergency Department

2012 ◽  
Vol 3 (3) ◽  
pp. 15-31
Author(s):  
Abbas Al-Refaie ◽  
Mohammed Shurrab ◽  
Ming-Hsien Li
Keyword(s):  
Emergency Department ◽  
Simulation Model ◽  
Performance Measures ◽  
Decision Makers ◽  
Activity Based Costing ◽  
Cost Information ◽  
Controllable Factors ◽  
Financial Practices

This study aims at developing an Activity Based Costing (ABC) for the Emergency Department (ED) in a Jordanian hospital to determine associated costs and clarifies the financial practices inside ED rooms. For this purpose, simulation model is built for patients at the current ED activities and determine the costs for each room in ED. The total costs (JD), number of served patients, and profits (JD) are 263562, 10256, and 146677, respectively. Improvement is suggested by studying three three-level controllable factors using simulation. It is noted that focusing on the lowest total costs, B-1 (adding two beds with one added nurse) and B-2 (introducing four beds with two added nurses) provide the two smallest total costs (JD) of 252568 and 253320, respectively. Whereas, for the largest number of served patients is achieved by A-1 (assigning one sharing doctor for Abdominal) and C-1 (adding another room for abdominal with new doctor) of equal number of served patients of 10466. In order to combine these two performance measures, the profit associated with each scenario is considered. It is found that factor A-1 provides the largest profit (= 150,390 JD). The results of this research may provide decision makers valuable cost information that helps them in improving ED performance.

International Quality Certification and Business Performance of Indian Firms: Evidence from Enterprise Survey Data

2019 ◽  
pp. 097215091982551 ◽  
Author(s):  
Jabir Ali ◽  
Nadia Yusuf
Keyword(s):  
Business Performance ◽  
Business Processes ◽  
Capacity Utilization ◽  
Chi Square ◽  
Quality Certification ◽  
Significant Difference ◽  
Certification And Accreditation ◽  
Comprehensive Survey ◽  
The Difference ◽  
Enterprise Survey

This article analyses the difference in firm’s performance between enterprises with and without international quality certification. The study is based on a comprehensive survey of 9,281 Indian firms operating in different regions of the country, conducted under the World Bank’s Enterprise Survey. About 44.9 per cent of the firms have adopted international quality certification for enhancing the quality of their business processes. Chi-square statistics indicate that there is a significant difference in enterprise characteristics by international quality certification. Result of the analysis of variance indicates a significant difference in business performance with and without quality certification in terms of sales, employment growth rates and capacity utilization. Firms with international quality certification perceive comparatively less obstacles than those who are not having international quality certification. This study provides insights on differences in firms’ performance and business obstacles faced by them with or without international quality certification. This study can be helpful in designing policies for promoting certification and accreditation of product quality and processes across business enterprises in a focused manner.

Tomato seed germination: regulation of different response modes by phytochrome B2 and phytochrome A

2006 ◽  
Vol 29 (4) ◽  
pp. 701-709 ◽  
Author(s):  
KLAUS-J. APPENROTH ◽  
GABRIELE LENK ◽  
LYDIA GOLDAU ◽  
RAMESHWAR SHARMA
Keyword(s):  
Seed Germination ◽  
Phytochrome A ◽  
Tomato Seed ◽  
Response Modes ◽  
Different Response
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