scholarly journals Measuring Nonvalue-Added Cost and the Cost of Excess Capacity in a Traditional Standard Cost System

2013 ◽  
Vol 2 (3) ◽  
Author(s):  
Leslie Kren ◽  
Barbara Louise Fetzer
Keyword(s):  
Excess Capacity ◽  
Cost System ◽  
Standard Cost ◽  
The Cost

scholarly journals Analisis Sistem Biaya Standar Dalam Meningkatkan Efisiensi Biaya Produksi Pada PT . HARDWARE

2019 ◽  
Vol 14 (2) ◽  
Author(s):  
Irma Yunita ◽  
Muhamad Imam Sundarta ◽  
Rahmat Mulyana Dali
Keyword(s):  
Production Process ◽  
Raw Materials ◽  
Production Costs ◽  
Cost System ◽  
Actual Production ◽  
Standard Cost ◽  
The Cost ◽  
Standard Production

<p>The purpose of this study was to analyze the standard cost system in improving the<br />efficiency of production costs at PT. HARDWARE. Testing is done by comparing the<br />standard production costs with actual production costs. Then it can be seen whether the implementation of this production process takes place efficiently or inefficient. Based on the calculation of the analysis that compares the standard costs with actual costs or can actually be concluded that in the production of jeans, there is a difference that benefits and is not profitable on the cost of raw materials, because the calculation of production<br />costs in PT. HARDWARE hasn't been done properly</p>

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.

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.

scholarly journals Cost Adjustment in the Korean Defense Industry: Empirical Research on the Relation between Earnings Management and Sustainability

2019 ◽  
Vol 11 (5) ◽  
pp. 1481 ◽  
Author(s):  
Sangkyun Sohn ◽  
Joonho Park ◽  
Jinseek Lee
Keyword(s):  
Earnings Management ◽  
Indirect Costs ◽  
Defense Industry ◽  
Equity Capital ◽  
Cost Of Equity Capital ◽  
Cost Of Equity ◽  
Cost System ◽  
The Difference ◽  
Integrated Cost ◽  
The Cost

This article is a demonstrative research on the motivation and method for earnings management in the Korean defense industry and its connection with the cost of equity capital. The data for this article comes from the Korean DICS (Defense Integrated Cost System). The difference between the cost data submitted by defense corporations and those verified by DAPA (Defense Acquisition Program Administration) serves as an indicator of earnings management; such a direct measurement of earnings management distinguishes this research from previous studies focusing on indirect indicators of earnings management, such as discretionary accruals. This article purposefully names such a specific form of earnings management as ‘cost adjustment’ that takes advantage of the difference between the submitted cost and the verified cost. The result of the research shows that cost adjustment activities in the defense industry are proportional to the capital cost required by shareholders. It is also notable that the cost adjustment activities in the defense industry are mostly done by making use of direct costs, in contrast to other industries utilizing indirect costs, which are hardly traceable. As a result of cost adjustment to meet short-term target profit, the long-term sustainability of the company would get impaired from the inflated costs in direct cost adjustments.

Estimating Activity Costs: How the Provision of Accurate Historical Activity Data from a Biased Cost System Can Improve Individuals' Cost Estimation Accuracy

2007 ◽  
Vol 19 (1) ◽  
pp. 133-159 ◽  
Author(s):  
Dan L. Heitger
Keyword(s):  
Cost Estimation ◽  
Estimation Accuracy ◽  
Activity Data ◽  
Research Attention ◽  
Cost System ◽  
Initial Cost ◽  
Activity Cost ◽  
Historical Activity ◽  
The Cost ◽  
Activity Costs

An integral component of effective cost control and performance evaluation is the ability to accurately estimate relationships between activities and overhead costs (i.e., activity costs). Individuals using a single cost pool system often have to rely on memory of historical activity data when estimating activity costs. If individuals' recall of data is representative of the historical data, then reliance on memory should not be detrimental to cost estimation accuracy. However, individuals often possess incorrect initial beliefs about activity costs. These incorrect beliefs are expected to serve as an anchor from which individuals make insufficient adjustments when estimating activity costs based on memory of historical activity data. Multiple cost pool systems frequently provide biased standard rates; however, such systems also provide accurate historical activity data when individuals estimate costs. I extend prior accounting research by experimentally examining whether a multiple cost pool system's provision of accurate historical activity data improves activity cost estimation for individuals with incorrect cost beliefs even when the cost system also provides biased standard rates. The main contribution of the study is its finding that the multiple cost pool system's provision of historical activity data improves individuals' adjustments from their incorrect initial cost beliefs when estimating activity costs, thereby increasing their estimation accuracy. The results suggest that this improved adjustment from incorrect initial cost beliefs occurs because the provision of historical activity data improves individuals' recognition of how wrong their initial cost beliefs were in reality. This result is achieved even though the cost system provides biased standard rates. The ability of flawed cost systems to improve individuals' activity cost estimation in other such ways has received little research attention and is important because of its potential for improving managerial decision making.

Development of a Low Cost Device for Measuring Solar Irradiance

2012 ◽  
Vol 457-458 ◽  
pp. 1377-1382
Author(s):  
Yu Jie Chen ◽  
Cong Hu ◽  
Yi Ze Sun ◽  
Zhuo Meng
Keyword(s):  
Solar Irradiance ◽  
Low Cost ◽  
Short Circuit ◽  
Short Circuit Current ◽  
Solar Irradiation ◽  
Photoelectric Cell ◽  
Cost System ◽  
Different Temperatures ◽  
The Cost

For a determination of the system’s efficiency and decrease the cost, a low cost system for measuring solar irradiance is designed. By analyzing the influence of solar irradiance and temperature to solar cell, we have found that in case of different temperatures the variation of short-circuit current (Isc) in function of solar irradiation incident (E) is always linear. Then the read-out circuitry is designed to measure and convert the signal which is detected by the photoelectric cell and thermocouples. At last, the software is developed to compensate the temperature and make sure the device work normally. The results of detecting the system show that it’s effective and reliable.

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>

scholarly journals Performance differences between the episode-based DBC and diagnosis-related DRG case mix systems

2017 ◽  
Vol 91 (7/8) ◽  
pp. 224-235
Author(s):  
Yvonne Krabbe-Alkemade ◽  
Tom Groot
Keyword(s):  
Health Care ◽  
Coarse Grained ◽  
Cost Information ◽  
Dutch Hospital ◽  
Fine Grained ◽  
Specification Errors ◽  
Cost System ◽  
The Cost ◽  
Product Definition ◽  
Very High

This paper explores the question how much detail a cost system needs to have in order to provide reliable cost information at a reasonable price. In general, fine-grained cost systems with a lot of detail (in product definition, in cost drivers and in cost pools) are expected to provide more reliable cost information than coarse- grained cost systems with less detail. This paper takes as an example the DBC cost system that has been developed for the Dutch hospital sector. The fine-grained DBC system with over 40,000 health care products appears to outperform lowergrained DRG systems with “only” 15,000 and 6,000 health care products on cost homogeneity and predictive validity. It does so however at the cost of a high number of products with measurement and specification errors, caused by a large number of outliers and by a low number of observations in product groups. The cost-effectiveness of the DBC system is not very high: only 3% of all DBC-codes explains 80% of total costs, whereas the lower-grained DRG system uses 14% of the codes to explain 80% of total costs. Combined with the high administration cost of the DBCsystem, it was from an economic perspective, a sensible idea to replace the finegrained DBC-system by the coarse-grained DOT system.

scholarly journals DESAFIOS PARA IMPLANTAR UM SISTEMA DE CUSTOS EM TRIBUNAL REGIONAL DO TRABALHO NO RIO GRANDE DO SUL

2018 ◽  
Vol 15 (1) ◽  
pp. 29
Author(s):  
Giovani Pasa Colussi ◽  
Ângela Rozane Leal de Souza
Keyword(s):  
Administrative Support ◽  
Indirect Costs ◽  
Cost System ◽  
Regional Labor ◽  
Qualitative Descriptive ◽  
Administrative Area ◽  
Costing System ◽  
The Cost ◽  
Productivity Gains

Com a obrigatoriedade para implantação de um sistema de custos no Tribunal Regional do Trabalho da 4ª Região (TRT4) até 2020, o presente estudo tem como questão problema detectar quais informações o sistema de custos deverá gerar para os gestores do TRT4. Esta pesquisa objetiva demonstrar as diretrizes do Sistema de Custos da Justiça do Trabalho (SICJT) e as necessidades do Sistema de Custos do Tribunal Regional do Trabalho da 4ª Região (SICTRT4) apontadas pelos gestores do Tribunal. A pesquisa é definida como qualitativa, descritiva e estudo de caso. Foram realizadas entrevistas com os gestores do TRT4 e analisados documentos referentes ao SICJT. Para o SICTRT4, foram apontados: (a) o método de custeio: custeio direto ou ABC; (b) o rateio dos custos indiretos: na área judiciária e administrativa; (c) os benefícios: ganho de produtividade, comparabilidade, maior transparência; (d) as informações geradas: custo do processo julgado pelas instâncias, relatórios e informações confiáveis; e (e) os centros de custos: unidades do 1º e 2º grau, apoio judiciário, apoio administrativo e as áreas autônomas. Os desafios encontrados são orçamentários, tais como a falta de conhecimento e divulgação do sistema pela administração, a resistência a mudanças e a falta de sistemas específicos.Palavras-chave: Sistema de custos. Custos aplicados ao setor público. TRT4.ABSTRACTWith the obligation to implant a cost system in the Regional Labor Court of the Fourth Region (TRT4) by 2020, the present study has as problem what information the cost system should generate for TRT4 managers. This research aims to demonstrate the guidelines of the Labor Justice Costing System (SICJT) and the needs for the Regional Labor Court of the Fourth Region Costing System (SICTRT4) pointed by the court managers. This study is defined as qualitative, descriptive and case study. Interviews were conducted with the TRT4 managers and documents related to the SICJT were analyzed. For the SICTRT4 were found: (a) costing method: direct costing method or ABC costing method; (b) apportionment: indirect costs distribution in the judicial and administrative area; (c) benefits: productivity gains, comparability, greater transparency; (d) generated information: judged cases costs from all instances, reports and reliable information; (e) costs centre: 1st and 2nd instances, legal aid, administrative support and autonomous areas. The challenges found are budget, lack of knowledge and disclosure of the system from by the administration, resistance to changes and lack of specific systems.Keywords: Costing system. Public costing. TRT4.

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