scholarly journals PROSPECTS OF USING THE ABC METHOD IN ECONOMIC PRACTICE OF ENTERPRISES

2021 ◽  
pp. 170-176
Author(s):  
Ihor Yaskal ◽  
Oksana Yaskal ◽  
Igor Stasiuk
Keyword(s):  
Unit Cost ◽  
Indirect Costs ◽  
Pricing Policy ◽  
Market Pricing ◽  
Traditional System ◽  
Method Of Calculation ◽  
Construction Company ◽  
Policy Application ◽  
Abc Method ◽  
The Cost

Introduction. The traditional system of calculating the cost of production by the complete expenses has performed an accounting function but carries overhead (indirect) costs to the cost of certain products only in proportion to the volume of its outputs. That is why it has a number of shortcomings, which are particularly acute in market conditions: it does not provide for the distribution of costs by functions and actions, does not provide reliable calculation, the objectivity of assessment and market pricing. Results. It has been calculated and compared the cost of the main products of the enterprise in the research (on the example of LLC "Design and Construction Company" RIKA") by the method of calculation by the complete expenses and the method of ABC. It has been established that when calculating by the complete expenses there is an insufficient share of overhead costs which refers to the cost of products produced in smaller quantities and vice versa. It has been determined that using the method of calculating the cost by the complete expenses leads to unjustified overstatement of the share of overhead costs in the cost of products with a significant share of direct labour and material costs ( namely: construction of facilities and production of concrete products) and the share of overhead costs in the cost of products with a small number of direct labour costs and materials is insignificant (namely: the production of mixtures and the development of documentation). It has been calculated relative savings of unit cost (construction of facilities, production of concrete products) from the application of the ABC method. It has been also determined that it is advisable to change the approach to the pricing of such products as the production of mixtures and the development of documentation, as their cost is higher than the accounting. This indicates the unprofitable price for the company of these products and the need for management decisions or the abandonment of these products or a change in pricing policy. Application. The application of the ABC method in the distribution of enterprise costs could identify new benchmarks in product cost management, provided that existing accounting is adapted to this method.

ANALISIS BIAYA SATUAN METODE ACTIVITY BASED COSTING DALAM EVALUASI TARIF PELAYANAN KESEHATAN DI ERA JKN (Studi Kasus Pasien Stroke di Rumah Sakit Kristen Mojowarno)

2016 ◽  
Vol 26 (1) ◽  
pp. 79
Author(s):  
. Soewatoen
Keyword(s):  
Unit Cost ◽  
Indirect Costs ◽  
Activity Based Costing ◽  
Labor Costs ◽  
Stroke Patients ◽  
Severe Stroke ◽  
High Care ◽  
Mild Stroke ◽  
Christian Hospital ◽  
The Cost

Mojowarno Christian Hospital is an organization that is move in health services that produce multi-product, theratio of consumption of each product is different and significant indirect costs therefore needed to determine theservice tariff calculation of unit cost in the hospital with Activity Based Costing Method. The purpose of this studywas to determine the calculation of unit costs of care and outcomes of stroke patients fare calculation using theunit cost from Activity Based Costing method hospital compared with rates prevailing at the moment and ratesINA CBGs. This type of research is a qualitative case study. Based on calculations by the method of ActivityBased Costing obtained Unit Cost for Outpatient is Rp. 749.705, Unit Cost for Emergency Care Unit Mild Strokeis Rp 664.093;Medium Stroke Rp. 1.424.683, Severe Stroke Rp. 2.282.755,-. Unit Cost for Room type III MildStroke is Rp. 3.899.786, Medium Stroke Rp. 5.874.646, Severe Stroke Rp. 7.892.496; Unit Cost for Room type IIMild Stroke is Rp. 4.859.510, Medium Stroke Rp. 7.557.913, Severe Stroke Rp. 10.294.306; Unit Cost for Roomtype I Mild Stroke is Rp. 6.097.530, Medium Stroke Rp. 9.728.198, Severe Stroke Rp. 13.391.856; Unit Cost forVIP Room Mild Stroke is Rp. 10.953.150, Medium Stroke Rp. 18.240.533, Severe Stroke Rp. 25.540.906 ; UnitCost for High Care Unit Mild Stroke is Rp. 3.710.121, Medium Stroke Rp. 5.655.278, Severe StrokeRp. 9.477.309 and Unit Cost Intensive Care Unit Mild Stroke is Rp. 7.010.169, Medium Stroke Rp. 10.605.350,Severe Stroke Rp. 17.727.429,-.Each unit cost plus the cost of materials and direct labor costs, it can be seen thatthe cost of treatment of each disease severity have enough material price difference. It is because the higher theseverity of the disease makes the longer the treatment, the more use the service activities, and service facilities, itsmake the cost is higher. The comparison resoult showed that hospital rates prevailing at this time and the resultsof the calculation using the ABC method for stroke patients is higher than the rate of INA CBGs.

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>

COST ANALYSIS OF CLINICAL PRACTICE NURSING PROFESSION STUDENTS WITH ACTIVITY BASED COSTING (ABC) METHOD IN Dr. SOEWANDHI HOSPITAL SURABAYA EAST JAVA

2017 ◽  
Vol 1 (2) ◽  
pp. 128
Author(s):  
M Hasinuddin ◽  
Nuh Huda ◽  
Abdul Wahid
Keyword(s):  
Clinical Practice ◽  
Professional Practice ◽  
Unit Cost ◽  
Educational Institutions ◽  
Activity Based Costing ◽  
Practice Nurses ◽  
Professional Nurses ◽  
Abc Method ◽  
The Cost ◽  
The Impact

Background and objectives. During this time the unit cost of clinical practice in hospitals that practice becomes a vehicle which has not been done calculation costing more Clinical practice based on estimates, propriety and comparison with the cost of clinical practices from other hospitals. The costing is sometimes caused problems. Currently the cost of student practice in teaching hospitals varies between Rp. 300,000 - Rp. 500,000 / person / month. The problem that exists is how the unit cost and how much it costs the right based on unit cost and other considerations that apply to students practice at the Hospital Clinic as a vehicle for clinical practice. The purpose of this study to determine the unit cost and set the cost of professional practice of nurses that will be proposed applicable professional nurses students at Hospital.Method. This research was a descriptive observational study by conducting a case study in the dr. Soewandhi hospital East Java. Calculation of unit cost carried by Activity Based Costing (ABC), costing more to do content analysis after conducting focus group discussions, as well as other considerations.Research result. The results using the ABC method showed that the unit cost to the cost of professional practice nurses in the hospital Dr. Soewandhi Surabaya is Rp. 460,000, - / month / person, while the cost of practice set by the RS Dr. Soewandhi is Rp. 1.200.000, - / month / person. There is a practice of the profession excess costs Rp. 740,000, -. RS Dr. Surabaya Soewandhi practice fees apply without using a standard based on the unit cost accordingly. Some educational institutions felt the cost was very heavy so the impact to the cancellation of the filing of the professional nurses student practice.Conclusions and recommendations. The hospital used a professional students practice nurses should use the standard fees in accordance with needs through precise calculations that the fees charged to students through educational institutions in accordance with the appropriate calculations.Keyword: ABC system - Profession nurses - Fee Practices

scholarly journals MODEL PERHITUNGAN UNIT COST LAYANAN KESEHATAN DENGAN METODE BIAYA KONVENSIONAL DAN ABC (STUDI KASUS DI PUSKESMAS “X” KABUPATEN LUMAJANG)

2017 ◽  
Vol 1 (1) ◽  
Author(s):  
Imam Mulyono
Keyword(s):  
Unit Cost ◽  
Indirect Costs ◽  
Calculation Model ◽  
Civil Servants ◽  
Cost Calculation ◽  
Activity Based Costing ◽  
Total Cost ◽  
Service Unit ◽  
Average Unit ◽  
Abc Method

@font-face { font-family: "Times New Roman"; }@font-face { font-family: "宋体"; }@font-face { font-family: "SimSun"; }p.MsoNormal { margin: 0pt 0pt 0.0001pt; text-align: center; font-family: "Times New Roman"; }p.MsoFooter { margin: 0pt 0pt 0.0001pt; text-align: center; font-family: "Times New Roman"; }span.msoIns { text-decoration: underline; color: blue; }span.msoDel { text-decoration: line-through; color: red; }div.Section0 { }Public Health Center (PHC) is one organization that is very strategic and have special authority in the health services so that they are entitled to innovate in the health service. Unit cost calculation purposes of research compiled by the PHC Unit Cost Konvensional Method and Activity Based Costing (ABC) Approach. The study was conducted at PHC "X" Lumajang City. The Research Methods used a case study with the source data from interviews and documentation. Results of this study include the calculation model of unit cost with konvensional methods, the classification of the direct costs and indirect costs, acquired unit cost by considering all PHC staff salaries amounted Rp.124.987,00, while if the total salaries of employees of PHC "X" that civil servants are not included in the total cost of the component units of the average unit cost of each service is Rp. 36.087,00. Analysis of calculation models of unit cost of service with the ABC method, classified in activities, among other things -Producting Activities Result, Result-Contribution Activities, Support Activities, and Hygiene & Houskeeping Activities, acquired PHC unit cost with consideration of all PHC staff salaries amounting to Rp. 124,876.00, whereas if the total salaries of employees of PHC "X" that civil servants are not included in the total cost of the components, the unit cost of the service on average for each service, patients bear only Rp. 44.103,00.

scholarly journals Typhoid and Paratyphoid Cost of Illness in Bangladesh: Patient and Health Facility Costs From the Surveillance for Enteric Fever in Asia Project II

2020 ◽  
Vol 71 (Supplement_3) ◽  
pp. S293-S305 ◽  
Author(s):  
Nelly Mejia ◽  
Sarah W Pallas ◽  
Samir Saha ◽  
Jamal Udin ◽  
K M Ishtiaque Sayeed ◽  
...  
Keyword(s):  
Cost Of Illness ◽  
Economic Burden ◽  
Enteric Fever ◽  
Unit Cost ◽  
Indirect Costs ◽  
Public Health Policies ◽  
Illness Onset ◽  
Illness Study ◽  
The Cost ◽  
Substantial Economic Burden

Abstract Background We conducted a cost of illness study to assess the economic burden of pediatric enteric fever (typhoid and paratyphoid) in Bangladesh. Results can inform public health policies to prevent enteric fever. Methods The study was conducted at 2 pediatric health facilities in Dhaka. For the patient and caregiver’s perspective, we administered questionnaires on costs incurred from illness onset until the survey dates to caregivers of patients with blood culture positive cases at enrollment and 6 weeks later to estimate the direct medical, direct nonmedical, and indirect costs. From the perspective of the health care provider, we collected data on quantities and prices of resources used by the 2 hospitals to estimate the direct medical economic costs to treat a case of enteric fever. We collected costs in Bangladeshi takas and converted them into 2018 US dollars. We multiplied the unit cost per procedure by the frequency of procedures in the surveillance case cohort to calculate the average cost per case. Results Among the 1772 patients from whom we collected information, the median cost of illness per case of enteric fever from the patient and caregiver perspective was US $64.03 (IQR: US $33.90 –$173.48). Median direct medical and nonmedical costs per case were 3% of annual labor income across the sample. From the perspective of the healthcare provider, the average direct medical cost per case was US $58.64 (range: US $37.25 at Hospital B, US $73.27 at Hospital A). Conclusions Our results show substantial economic burden of enteric fever in Bangladesh, with higher costs for patients receiving inpatient care. As antimicrobial resistance increases globally, the cost of illness could increase, due to more expensive and potent drugs required for treatment.

scholarly journals Total production costs of construction enterprise features of distribution

2021 ◽  
Vol 2 (47) ◽  
pp. 86-93
Author(s):  
L. Husarova ◽  
O. Rubtsova ◽  
D.S. Olenich
Keyword(s):  
Indirect Costs ◽  
Production Costs ◽  
Total Production ◽  
Construction Enterprise ◽  
Construction Company ◽  
Construction Enterprises ◽  
Formal Procedure ◽  
The Cost ◽  
Cost Of Construction

The article considers the peculiarities of the distribution of total production costs, taking into account the specifics of the construction enterprises of Ukraine. It is established that the accounting processes are regulated by UAS 16 "Costs" and UAS 18 "Construction contracts", but in practice the implementation of  the distribution of overhead costs becomes a formal procedure due to insufficient definition and presentation in the current regulatory framework of the classification of costs. It is noted that in construction there are three types of cost of construction and installation work: estimated, which includes regulatory costs due to estimated norms and current prices; planned, which includes the cost of construction and installation work and is determined on the basis of technical and economic calculations using economically justified norms and standards of costs for construction and installation work under normal capacity of the construction company and the actual, including the actual costs of the construction company, incurred during construction and installation work.  This feature leads to the possibility of significant differences in the actual and estimated cost of construction. The schematic connection of the classification of costs by economic elements and costing items in calculating the cost of construction and installation work is given. It is determined that the improvement of accounting for total production costs should be an element of strategic management in the construction company as there is a tendency to increase in recent years. Carrying out the correct distribution of  total production costs requires further development of regulatory and methodological framework, firstly, by improving the classification of indirect costs with the development of criteria for determining their fixed and variable part, and secondly, developing criteria for selecting the optimal distribution base of construction enterprises. It is considered promising to use information technology for more accurate calculations and improve the working conditions of analysts in the distribution of  total production costs.

scholarly journals Cost management of a construction company based on functional cost analysis

2021 ◽  
Vol 274 ◽  
pp. 05003
Author(s):  
Olga Borovskikh ◽  
Alsu Evstafieva ◽  
Ludmila Marfina
Keyword(s):  
Cost Analysis ◽  
Cost Management ◽  
Practical Importance ◽  
Indirect Costs ◽  
Careful Analysis ◽  
Construction Company ◽  
Construction Companies ◽  
Pareto Curve ◽  
Abc Analysis ◽  
The Cost

In conditions of environmental instability and uncertainty, one of the factors for the effective functioning and development of a construction company is high-quality and continuous cost management. The cost management process is aimed at maximizing profits by increasing the efficiency of the use of all resources. It requires constant monitoring to make adjustments to the planned costs and their amounts. Cost management is impossible without careful analysis. Along with the traditional methods of cost management, it is advisable for construction companies to apply functional cost analysis, which is an effective tool for optimizing costs and the quality of production functions performance. The research studies a construction company. Particular attention in the study is paid to indirect costs due to an increase in their share in the structure of the construction products cost. Within the framework of the functional cost analysis, an ABC analysis was carried out and a Pareto curve was modelled. It allowed us to focus on the allocated cost areas and classify the processes into main, basic and supportive ones. The significance of the identified processes was determined using the paired comparisons method. The results obtained allow us to draw a conclusion about the correspondence of the share of cost items and their significance for the analyzed construction company. The research materials are of interest and practical importance for the CEOs of construction companies.

scholarly journals The effectiveness of ABC method in small companies

2019 ◽  
pp. 40-54 ◽  
Author(s):  
Rūta Klimaitienė ◽  
Kristina Rudžionienė ◽  
Andželika Verbliugevičiūtė
Keyword(s):  
Indirect Costs ◽  
Cost Calculation ◽  
Small Companies ◽  
Activity Based Costing ◽  
Product Cost ◽  
Advantages And Disadvantages ◽  
Cost Distribution ◽  
Abc Method ◽  
The Cost ◽  
A Company

Under the current conditions of Economics, in order to keep competition it is necessary to possess not only good economical resources, but also to apply them relevantly in production and this is impossible without good administration in accounting of costs and productions costs. Before the calculation of product cost, first, it is necessary to know which costs and how many of them are included into the indicators of product cost. The validity and objectiveness of the obtained information depend on the preciseness of current cost distribution for the product cost. Scientific problem – it is unclear how ABC method affects the calculation of partial cost in small companies. It is not clear which method of cost calculation is most beneficial to apply for small companies –it is necessary to research how to distribute indirect costs – either applying ABC system (activity based costing - ABC) or using more simple – traditional distribution methods. The object is ABC method. The aim is to research the application efficiency of ABC method in small companies. In the first part there are analysed the pieces of research carried out by foreign authors investigating ABC method. There is executed the research in cost calculation in Lithuanian companies in order to identify if companies apply the following method, what benefit they receive and which difficulties they face. Having completed the analysis there were formulated advantages and disadvantages of the following method. In the second part, following the possessed cost calculation data of the company ‘Baldas’ there is compared the cost of the key company’s products calculated under traditional method and applying ABC method. It was indicated if it is useful for a company to apply ABC method for cost calculation.

A Modified Method of Activity-based Costing for Objectively Reducing Cost Drivers in Hospitals

2006 ◽  
Vol 45 (04) ◽  
pp. 462-469 ◽  
Author(s):  
S. Toyabe ◽  
S. Kurashima ◽  
M. Okada ◽  
K. Akazawa ◽  
P. Cao
Keyword(s):  
Indirect Cost ◽  
Cost Estimation ◽  
Hospital Costs ◽  
Indirect Costs ◽  
Cost Driver ◽  
Medical Services ◽  
Activity Based Costing ◽  
Cost Drivers ◽  
Abc Method ◽  
The Cost

Summary Objectives: Activity-based costing (ABC) is widely used to precisely allocate indirect costs to medical services. In the ABC method, the indirect cost is divided among the medical services in proportion to the volume of “cost drivers”, for example, labor hours and the number of hours of surgery. However, the workload of data collection of cost drivers can be time-consuming and a considerable burden if there are many cost drivers. The authors aim to develop a method for objectively reducing the cost drivers used in the ABC method. Methods: In the ABC method, the cost driver is assigned for each activity. We assume that these activities and cost drivers are the best combination. Our method, that is cost driver reduction (CDR), can objectively select surrogates of the cost drivers for each activity in ABC from candidate cost drivers. Concretely, the total indirect cost of an activity is temporarily allocated to the medical services using each candidate of cost drivers. The difference between the costs calculated by each candidate and the proper cost driver used in ABC is calculated to evaluate the similarity by the evaluation function. Results: We estimated the cost of laboratory tests using our method and revealed that the number of cost drivers could be reduced from seven in the ABC to four. Similarly, the results of cost estimation obtained by our method were as accurate as those calculated using the ABC. Conclusions: Our method provides two advantages compared to the ABC method: 1) it provides results that are as accurate as those of the ABC method, and 2) it is simpler to perform complicated estimation of hospital costs.

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