scholarly journals A PROPOSED CASE STUDY FIELD RESEARCH METHODOLOGY TO TEST COST DRIVERS: AN EXAMPLE OF PROPOSED FIELD STUDY AT A NUCLEAR MEDICINE UNIT

This paper illustrates how to use case study method to conduct the cost driver research at hospitals by identifying activity-based cost drivers at the nuclear medicine unit (NMU) of a teaching hospital. I argue that recognizing the activity-based cost could improve the accuracy of estimating costs by identifying the underutilized resources and value-added and non-value-added cost drivers, to reduce non-value-added costs; thereby, facilitating the management to make better informed managerial decisions (e.g., improving pricing practices and using resources more efficiently). Therefore, I believe that this study may provide a useful inference to hospitals to improve the quality and quantity of the service, which they (or would) provide. Furthermore, this paper possibly provides an informative research methodology for researchers by showing how to extend the current literature by applying the same cost analysis research model on a different dataset for the health care industry research.

2018 ◽  
Vol 1 (2) ◽  
pp. 228-244
Author(s):  
Asmawarna Sinaga ◽  
Anjur Perkasa Alam ◽  
Fariz Arkan ◽  
Sri Wahyuni Hasibuan

  Analysis of the amount of financing the hajj bailout for the cost of the pilgrimage (Case Study of Bank Sumut Syariah Sub-Branch Stabat).Asmawarna Sinaga and Anjur Perkasa Alam. Hajj financing is a loan from a sharia bank to customers to cover the shortage of funds to obtain a seat (seat) Hajj at the time of repayment BPIH (Hajj Travel Expenses). This financing product uses the Qardh Wal Ijarah principle. The purpose of this research is to know the view of Islamic law against financing of Hajj bailout fund and to know the view of Islamic law about ujrah fee on akad of bailout fund of Hajj. This research is field research. The definition of the Hajj bailout is a bailout fund from a bank to a special customer to cover kekurangandana to cover the lack of funds to obtain a portion number at the time to pay the cost of organizing the pilgrimage. The research design uses a qualitative approach with non-statistical analysis While the data analysis techniques use content analysis and interactive methods consisting of data reduction, data collection, data presentation and conclusion. The results of this study note that the akad bailout funds in Islamic banks contain multi-akad, where the contract used qardh and ijarah is allowed. While the view of Islamic law regarding the taking of ujrah fee on hajj bailout fund is not in accordance with sharia due to the percentage of ujrah fee based on qardh fund.


2021 ◽  
Vol 8 (4) ◽  
pp. 19-34
Author(s):  
Samuel Nii Attoh Abbey

With the flagship success of M-Pesa, mobile devices have become an important tool to facilitate the financial inclusion of the previously unbanked population in developing countries. Following the success of M-Pesa in Kenya in 2007, mobile money technologies became widespread across Africa. Beginning in 2009, Ghana experienced exceptional adoption of Mobile Money technology. Many studies have examined the influence of mobile money on financial inclusion from a variety of perspectives, and many have concluded that mobile money is a game-changer in this regard. The Mobile Money concept has evolved based on introducing the other value-added services such as microloans, savings, and insurance portfolios. The researcher used a questionnaire and a face-to-face interview to obtain qualitative data for this study. Together with other research, the statistics revealed that Mobile Money transactions in Ghana had more than tripled since it became the most popular payment method. Over the last year, the platform as a service has created over 140,000 jobs and has shown to be the safest channel. It has several advantages, including lowering the cost of printing and keeping cash on hand, as well as decreasing fraud because the technology underlying it gives appropriate audit trails to prevent fraud and boost economic growth.


2020 ◽  
Vol 2020 ◽  
pp. 1-12
Author(s):  
Na Lou ◽  
Jingjuan Guo

The prefabricated building as a major initiative has been put forward by China in recent years to promote the transformation and upgrading of the construction industry, but its rapid development also faces high cost constraints. Therefore, it is necessary and urgent to study the key cost drivers and cost control paths of prefabricated buildings. Most of the current research focuses on the construction cost of prefabricated building as a static object. This article, on the other hand, regards the construction cost of prefabricated building as a dynamic formation process and conducts systematic research from product systems, technical systems, construction processes, and management modes. The influence factors of prefabricated building cost are defined and screened with the help of HSM and previous research results. A cause-and-effect model and cost control model of prefabricated building cost driver are established. Based on the model test of the actual project, the cost generation of prefabricated buildings is simulated. Through sensitivity analysis, key cost drivers of prefabricated building are identified and ranked as degree of design standardization, unit price, prefabrication rate, information technology level, transportation mode, labor level, machinery level, transportation distance, etc. Accordingly, corresponding strategies are proposed for the cost control of prefabricated buildings.


2019 ◽  
Vol 19 (2) ◽  
pp. 165-183
Author(s):  
Aruna Apte ◽  
Corey Arruda ◽  
Austin Clark ◽  
Karen Landale

Purpose In an increasingly budget-constrained environment, the Department of Defense (DoD) must maximize the value of fiscal resources obligated on service contracts. Over half of DoD procurement spending between 2008 and 2012 was obligated on service contracts (GAO, 2013). Many services are common across the enterprise and recurring in nature; however, they are treated as unique and procured individually at the base level, year after year, rather than collectively in accordance with a larger, enterprise-wide category management strategy. The purpose of this paper is to focus on creating a methodology that treats common, recurring service requirements in a more strategic manner. Design/methodology/approach The authors develop a standardized, repeatable methodology that uses relevant cost drivers to analyze service requirements to identify more efficient procurement strategies. Furthermore, they create a clustering continuum to organize services based on proximity between the customer-supplier bases. This paper uses a commercial business mapping software to analyze cost driver data, produce visualizations and illustrate strategic opportunities for category management initiatives. DoD requirements for Integrated Solid Waste Management (ISWM) within the Los Angeles area are evaluated using the software and methodology to demonstrate a model for practical application. Findings The authors find that commercial software can be used to cluster requiring activities needing common, recurring services. This standardized, repeatable method can be applied to any category of services with any number of cost drivers. By identifying optimal requiring activity clusters, procurement agencies can more effectively implement category management strategies for service requirements. Research limitations/implications The initial approach of this paper was to develop a macro-level, one-size-fits-all model to centralize procurement. The authors found this approach inadequate as they tried to group service requirements of wildly differing characteristics. They experienced other significant limiting factors related to data availability and data collection. Social implications Clustering common and recurring DoD service requirements would result in standardized levels of service at all installations. The demand savings from clustering would promote the implementation of best practices for that service requirement across the DoD, which would eliminate non-value-added activities currently performed at some installations, or gold-plating of requirements, which is also likely occurring. Originality/value This paper is the first to use an analytics-based methodology to cluster common, recurring public services. It is the first method that offers a standardized, repeatable approach to implementing category management of service requirements to achieve cost savings.


2021 ◽  
Vol 66 (3) ◽  
Author(s):  
Ram Singh

This study on ‘Value Chain Analysis of Fish in Meghalaya: A case study in East Khasi Hills district’ has been conducted in 2020-21 with specific objectives (1) To map the actors involved in the value chain of fish business. (2) To estimate the value addition in fish marketing by the value chain actors. The value chain actors were identified and the structure of the value chains was mapped. The study revealed that the most commonly followed method of value addition of fish in the study area are fermenting, drying and smoking. The cost incurred for making fermented fish was observed to be ` 21.50/kg, ` 16.50/kg for dry fish and ` 37.50/kg for smoked fish. Additionally, net profit was found to be highest in value-added fish than compared to fresh ones. Therefore, value addition should be encouraged among fish farmers to increase net profit.


2020 ◽  
Vol 4 (2) ◽  
pp. 310-322
Author(s):  
Syamsu Alam

This study aims to trace the absorption of overhead costs in the production process at Sabbena Soppeng's silk house, to identify appropriate cost drivers in allocating overhead costs to products that are accurate and do not occur distortion. This research uses descriptive method. Collecting data through interviews, observation, documentation. The analysis was carried out by applying a two-stage activity-based costing model. First, trace overhad costs to the “cost pool”. Second, trace the overhead costs to the product using multiple cost drivers. The results showed: a) the product category " Kain Sutera" shows a smaller difference of Rp. 3,253.62; b) product category "Sarung sutra ST-0 Standar" shows a bigger difference of Rp 10,997.4; c) product category "Sarung sutera ST-1 Standar" shows a bigger difference of Rp 22,420.49; d) product category "Sarung sutera ST- Sedang" shows a bigger difference of Rp. 28,352.51; e) product category “Sarung Sutera ST-ASL” shows a bigger difference of Rp. 278,342.75. The difference is due to the fact that the traditional overhead system does not use several cost drivers. Meanwhile, the ABC system uses a multi cost driver in charging BOP. So that with the ABC System it is considered that the BOP allocation is more accurate. Keywords : Activity Based Costing, Cost of Production.


2018 ◽  
Vol 11 (6) ◽  
pp. 100-111
Author(s):  
V. B. Frolova ◽  
T. F. Khan

The subject of research is a set of methodological and practical aspects of assessing the cost factors of food companies. The study of the above factors is becoming relevant under the current conditions of environment instability and the necessity to stimulate investment, given the low elasticity of demand for products in this sector. The purpose of the research was to confirm the hypothesis of a variety of cost drivers that form the financial result of companies in a developed and emerging markets by an example of 39 food retailers in an emerging market and 48 companies in developed markets based on a system approach and the comparison method using elements of factor and correlationand-regression analysis. The research findings obtained are as follows: the choice of indicators for the regression analysis of cost factors mostly of a multiplicative type is substantiated; the research was carried out using the indicator of financial result less the tangible assets depreciation; to clarify the results of the research, the elements of the comparative analysis were applied, with the companies classified into four groups where Lenta and X5 were in the group of the most efficient companies of the first quantile, and Dixie fell into the group of the fourth quantile companies that had difficulty in generating their own funds; the cost drivers of food retailers in emerging and developed markets were identified. It is concluded that the cost driver of food retailers in developed markets is profitability of sales, and in emerging markets it is the share of capital inputs in sales revenues. It has been established that the growth rate of consumer consumption plays a key role in the retail market of all countries. At the same time, there is a market tendency to oust small companies by large players whose assets have a higher level of investment demand. The novelty of the research lies in using by the authors the EBITA profitability indicator in the regression model, where EBITA is the profit before tax, interest and intangible assets depreciation.


Author(s):  
Paul Burdett ◽  
Gregory Y H Lip

Abstract Background Atrial fibrillation (AF) is the most common sustained heart arrhythmia and a major preventable cause of stroke, heart failure and dementia. AF already accounts for a significant amount of National Health Service (NHS) funding, and over the coming years is highly likely to impose a growing cost on NHS budgets and the wider UK health care system. We therefore need greater understanding of the main cost drivers (e.g. hospitalisations) of this increasingly prevalent arrhythmia. Such data would help with NHS resource planning over the next decades. Methods Based on prior published data, we initially calculated the cost of AF for 1995, and then again for 2000 which was calculated from a combination of contemporary and extrapolated data from that time. These data have been used as the basis for forecasting AF costs in the UK and as a share of total NHS expenditure. AF direct costs were split between cost driver categories; General Practioner (GP) consultations, GP referred OPD (Out Patient Department) visits, prescriptions and monitoring visits, primary admissions and post-discharge OPD visits. Forecast assumptions used: (i) NHS expenditure from 2020 onwards assumed to increase at annual rate of 3%/year; and (ii) the UK inflation rate to increase by 2% annually. Sensitivity modelling of 3%, 4% and 6% projected annual increase in AF prevalence amongst the population was applied. Results The estimated direct and proportion of NHS expenditure of AF in 2020 for each of the assumed increases of 3%, 4% and 6% would be £1,435m (0.91%), £1,741m (1.11%) and £2,548m (1.62%) respectively. For 2030, the modelling would mean that the direct costs of AF and proportion of NHS expenditure would be £2,351m (1.11%), £3,141m (1.48%), £5,562m (2.63%), respectively. For 2040, the modelling shows that the direct costs of AF and proportion of NHS expenditure would be £3,851m (1.35%), £5,668m (1.99%), £12,143m (4.27%), respectively. By far the largest contributor to the total direct AF costs in 2020 was for Primary Admissions (nearly 60%), with a further 7% with post-discharge Outpatient Clinic visits. Taken together the total for these two categories in 2020 would cost the NHS between £949m and £1,685m, depending on the projected increase in annual rate of AF prevalence. The full cost of AF related hospitalisations may be underestimated, due to the other admissions associated with a secondary coding of AF, which in 2020 are forecast to cost between £2,269m and £4,030m, depending on the annual population increase of AF prevalence. There will be an increasing number of patients discharged to a nursing home after a hospital admission associated with a principal AF diagnosis, with cost estimates for this in 2000 being £111m, and predicted to rise to between £346m and £614m by 2020. Conclusions Focussing on 2020, AF is predicted to directly cost the NHS a total of a minimum of £1,435m and a maximum of £2,548m (depending on AF prevalence); hence, between 0.9-1.6% of NHS expenditure, mostly from primary admissions. The total direct costs of AF would increase to 1.35-4.27% of NHS expenditure, over the next 2 decades. If hospitalisations can be avoided or reduced, we would substantially reduce the healthcare costs of AF to the NHS.


2018 ◽  
Vol 7 (2.21) ◽  
pp. 367
Author(s):  
K Karunakaran ◽  
R Saravanan ◽  
P Venkumar ◽  
R Sridha

Quality is free when reaches zero defects, quality is measured various aspects. The rework is carried out when the product finish not up to the standard, which added additional expenditure. On other side if there is no chance for rework the cost of raw material and value added cost up to that non conformity is lost. This work shares a success story and reveals a systematic scientific approach to reach zero defects. The case study conducted in the leading supplier who focuses on climate and energy efficient solutions. The traditional powerful quality tools employed to focus, understanding and analyse the problem. The Decision support system preferred and adopted to solve the problem with affordable cost. The outcomes of this work measured in terms of modern Total Productive Maintenance style that is in terms of Productivity, Quality, Cost, Delivery, Safety, Motivation and Morale (PQCDSM). The results in all the way found more significant. 


2017 ◽  
Vol 11 (3-4) ◽  
pp. 121-129
Author(s):  
László Szőllősi ◽  
Szilvia Molnár ◽  
Krisztina Ladányi ◽  
Laura Karnai ◽  
István Szűcs

The scale of Hungarian slaughterhouses is small in international comparison and the cost of slaughter and cutting a pig of average live weight is relatively high at 16.1-19.4 EUR on average. The aim of this study is to evaluate the cost of pig slaughter and cutting through the case study of a medium-scale plant in Hungary. Based on data from the enterprise, a calculation was performed in relation to the “output” quantity of pig slaughter and cutting, as well as its value and the cost and cost structure of processing. The capacity of the examined plant and its utilisation were analysed and cost reductions were estimated for various increases of output. In 2015, the direct cost of slaughter and cutting was 18.9 EUR per pig for the medium-scale plant which processed 100 thousand pigs. When the purchase cost of pigs is excluded, labour costs accounted for the highest share (30%) of costs, followed by services (29%) and energy costs (21%). For this reason, the level of wages and employer’s contributions has a rather high significance. Analysis showed that significant increases in Hungarian minimum wage and guaranteed living wage in 2017 resulted in an estimated 7% increase in the cost of slaughter and cutting compared to 2015, despite the decrease of contributions. The capacity utilisation of the plant was a low 28% when compared to a single 8-hour shift considered full capacity. The cost of slaughter and cutting was estimated to be reduced to 14.2-17.0 EUR per pig if the plant operated at full capacity. This may be considered a lower bound estimate of cost because there are numerous restricting factors on optimising capacity utilisation, such as: 1) number of live animals available for purchase and related logistics; 2) cooling capacity availability; 3) labour availability; 4) market position of the enterprise and potential for marketing additional pig meat products. Enterprises of this scale are recommended to consider producing more value-added products and, accordingly, investing in product development. JEL Classification: Q13, Q19


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