Analysis of Time Driven Activity Based Costing Implementation in Calculation of Cost Efficiency Level Capacity in Government Agencies (Case Study of KPP Pratama Binjai)

Currently, Indonesia still uses tax revenue as the main source of state revenue. However, the problem occurred when for several years it turned out that tax revenues did not meet the target. The percentage of realized tax revenues compared to the tax revenue target from year to year indicates that the ratio of tax revenues did not reach the target. One of the factors causing the non-achievement of tax revenue is related to the number of employees of the Directorate General of Taxes who are still not ideal with their workload. This study aims to determine how to calculate the efficiency level of capacity costs by using the theory of Time Driven Activity Based Costing (TDABC) in the utilization of currently available resources at the Tax Service Office, Kantor Pelayanan Pajak (KPP) Pratama Binjai. The population of this research is all the executor of the Service Section and Account Representative who are in KPP Pratama Binjai. The researcher uses descriptive (qualitative) data analysis method which only aims to explain the observed facts/practices based on certain theories. This study uses primary and secondary data from KPP Pratama Binjai. The results show that through the TDABC theory, the level of capacity cost efficiency at KPP Pratama Binjai is included in the less efficient category, which means that there is still a lot of unused capacity that should be maximized from available capacity and used capacity. Keywords: Time Driven Activity Based Costing (TDABC), Efficiency, Available Capacity, Used Capacity, Unused Capacity.

Evaluating Traffic Impacts of Permitting Trucks in Transit-Only Lanes

With ongoing population growth and rapid development in cities, the demand for goods and services has seen a drastic increase. Consequently, transportation planners are searching for new ways to better manage the flow of traffic on existing facilities, and more efficiently utilize available and unused capacity. In this research, a lane management strategy that allows freight vehicles to use bus-only lanes is empirically evaluated in an urban setting. This paper presents an analysis of data that was collected to evaluate the operational impacts of the implementation of a freight and transit (FAT) lane, and to guide the development of future FAT lane projects by learning from the case study in Seattle, U.S. The video data was converted to vehicle counts, which were analyzed to understand the traffic impacts and used to construct a discrete choice model. The analysis shows that transit buses used the FAT lane 96% of the time, and authorizing trucks to use the lane did not affect that lane choice. Trucks used the FAT lane, but their utilization decreased with increasing numbers of buses in the FAT lane. Instead of higher rates of trucks, unauthorized vehicles, such as passenger cars and work vans, increasingly used the FAT lane during congestion. As a result of their differing schedule patterns, trucks and buses used the FAT lane at complementary times and trucks showed relatively low volumes in the FAT lane. Overall, the results are promising for a lane management strategy that may improve freight system performance without reducing transit service quality.

Does capacity utilisation influence financial performance? A study of Indian public bus transport companies

PurposeThe objective of the paper is to get a better understanding of capacity utilisation (CU) in Indian public bus companies. More specifically, this paper would be measuring CU and identifying the drivers of the same. Finally, the influence of CU on the financial performance of Indian bus companies is examined.Design/methodology/approachThe study adopted data envelopment analysis (DEA) to measure the CU in Indian public bus companies. Truncated regression was used to identify the drivers of CU. Subsequently, the ordinary least squares (OLS) regression was used to analyse the influence of CU on Indian bus companies' financial performance. The period of study was from 2013 to 17.FindingsThe significant drivers of CU were fleet age, passenger lead and fleet utilisation. Additionally, it was found that CU had a significant positive influence on the financial performance of Indian public bus companies and a unit increase in unused capacity has led to an increase of 7% in the operating ratio of the bus companies.Practical implicationsGetting insights into CU, apart from technical efficiency, is of immense use to both public transport researchers and practitioners. Managers of public bus companies should be mindful of CU as it has a significant bearing on their financial performance.Originality/valueThis is the first study in public transport, which establishes the linkage between CU and financial performance. Besides, a modified measure of cost-efficiency has also been conceptualised in this study.

Constructing a new cost structure using time-driven activity-based costing for replanting at palm oil plantation

The palm oil industry in Malaysia is undeniably the pride of the country. However, in this plantation there are currently few issues which do not set up a time equation to interpret the variance of activities, the rate setting did not illustrate the correlation between the resources provided and the practical capacity, and the manager had no tool in place to monitor the unused capacity. In order to increase precision in the field of palm oil plantation, this work aims to develop a new cost structure. Time-driven activity-based costing (TDABC) has been introduced because it allows time output to be efficiently assessed, the idle capacity accurately defined, and the unused capacity separately to be recorded. This provides an overview of functional tools and their associated costs as well as measurement methods and facilitates quality improvement. This work focused only on replanting field and the plantation located in Pahang. The maximum replanting capacity cost rate (CCR), with 288600 minutes and 0.106 RM / minute, was subsequently successfully developed. Finally, the manager can observe that 68358.45 minutes of utilized capacity could be used for the systematic development of replanting capacity planning.

Harold Innis’s Concept of Bias: Its Intellectual Origins and Misused Legacy

Harold Innis is one of the foundational theorists of media and communications studies. In the mid-20th century, he developed his concept of media bias (also called the bias of communication). It remains Innis’s most cited concept, but it is also significantly misunderstood. For example, since his death in 1952, bias has often been applied in ways that are akin to a form of technological or media determinism. This has been an ongoing problem despite the fact that Innis developed his concept as a means of compelling analysts to reject such mechanistic formulations. Indeed, his goal was to promote more self-reflective modes of scholarship and, by extension, a recognition that such intellectual capacities—which he believed were essential for civilization’s survival—would be lost if they were not recognized and defended. More generally, Innis contextualized his work regarding media bias in terms of interrelated historical conditions involving political economic dynamics. Through his application of the concept to over 4000 years of history, he sought to provide his contemporaries with the reflective perspective needed to comprehend the underpinnings of modern biases that stressed present-mindedness and spatial control to the neglect of creativity and duration. Bias was derived from Innis’s studies on Canadian economic development involving the exploitation of its resources (an approach to history called the staples thesis). Several of the insights he garnered in those studies need to be recognized if we are to fully understand his subsequent communications research. Also, tracing the origins of his concept of bias enables us to fully assess the nature of Innis’s supposed media determinism. Typical uses of bias today focus on the spatial or temporal orientations that many assume are compelled through the use of a specific medium or set of media technologies. This misreading, inspired mainly by Marshall McLuhan’s representations of Innis, has led to assumptions regarding Innis’s determinism and a general neglect of the complexity of his original work. To repeat, Innis developed bias in order to redress the mechanistic and unreflective thinking of his day and always conceptualized it in terms of factors that are salient to the place and time being examined. Moreover, he applied bias alongside now largely forgotten concepts ranging from unused capacity to classic power–knowledge dialectics. Lastly, he situated the development and implications of a particular medium in relation to both old and new media (not just technologies, but organizations and institutions also). In sum, to comprehend Innis’s concept of bias, its intellectual and political underpinnings need to be acknowledged, the political economic dynamics of its development and application understood, and the implications of McLuhan’s influence recognized.

Development a new costing structure using time driven activity-based costing for palm oil plantation

Palm oil is one of the world's most traded farming commodities. The Malaysian palm oil industry is without a doubt to the nation's pride. However, there are few problems currently happen in this plantation which are no establishment of time equation to interpret deviation of activities, the rate establishment did not properly illustrate the correlation between supplied resources and practical capacity, and the manager did not have a tool to monitor the unused capacity. The aim of this work is to develop a new costing structure for a better accuracy specifically at nursery. Time-driven activity-based costing (TDABC) was applied because it can effectively measure the time efficiency, accurately identifies the idle capacity and separately lists the used and unused capacity. It also provides more comprehensive understanding of practical resources and its associated costs while measuring processes and encouraging quality improvement. The plantation located at Pahang which has three main divisions and this work was focussing on nursery only. This work found that a precise process mapping for nursery was developed to understand their specific sequence which contributes to time equations. Subsequently, the total used capacity and capacity cost rate (CCR) for pre-nursery was successfully developed with 98220 minutes and 0.168 RM/minute respectively. Eventually, the manager can observe that actually the unused capacity was 37515.31 min which can be used to systematically develop the capacity planning on the pre-nursery.

A Guide to Implementation of Time- Driven Activity -Based Costing in Saudi Electronic University

This research proposes a guide to implementation of time- driven activity -based costing (TDABC) in Saudi Electronic University (SEU) as an alternative to the traditional costing systems. It is worth mentioning that the cost accounting system should support mission and vision of the university by detecting any idle capacity and providing relevant information for rational decision-making as well as improving the quality of services provided to students and finally managing SEU’s resources efficiently and effectively. According to Saudi’s vision 2030, public universities in Saudi Arabia should act on both of revenue side and cost side. In the current costing system of SEU, there are no cost pools at colleges’ level, at academic departments’ level, at courses’ level, as well as at students’ level. Rather cost pools found at university’ level only. Therefore, the current costing system provides neither information on unit cost per student at any academic program nor information on the unused capacity at any resource centers. Despite the fact that TDABC theoretically overcomes the criticism to both traditional costing system that uses direct labor or machine hours as a cost driver and the traditional activity- based costing (ABC that uses many transactions cost drivers to allocate overhead costs to cost objects. The implementation of TDABC is still challenging particularly in universities by using the time as the primary cost driver for allocating resource costs to final cost objects in academic programs especially the human labor is considered the main resource in universities. The proposed guide to implementation TDABC provided SEU’s management information, including but not limited to, the average actual unit cost per student in each academic program either per semester, or per year, comparing actual fees students paid in each academic program to the actual average unit cost in each academic program to determine whether SEU covers all costs. In addition, comparing the average unit cost per student among all academic programs and investigating reasons of variations. The guide helps management determine the unused capacity in each resource center as well as preparing budgets of all resource centers accurately based on the actual used capacity.

Assessment the capacity utilization of mature and immature area of replanting using time driven activity-based costing

Malaysia is currently the world’s largest exporter of palm oil although it is the second-largest producer of the oil after neighboring Indonesia. There have recently been few concerns on this plantation which are hard to detect in order to understand the variance in the operations, and the rate setting is inadequate to outlined the relation between the resources supplied and the capacity in operation, and the manager has no system to track the usage of the capacity and unused capacity. The aim of this work is to assess the capacity utilization of mature and immature area at replanting for a better accuracy. Time driven activity-based costs (TDABC) is used because time efficiency can be calculated effectively. Furthermore, it also can precisely evaluate idle capacity and separately listing the resources being used and not used. This work considers a data in 2017 to develop the solution. This work found that in the mature area from the available capacity utilization, chipping has high insufficient capacity with RM-1931518.08, planting seedlings has high insufficient capacity with -805173.84 min and internal transport has high waste cost with RM45771.30. Meanwhile, in the immature area, planting seedlings has high insufficient capacity with -566934.84 min and RM-1621433.64, manuring has unused capacity with 66763.50 min and internal transport has high waste cost with RM29667.47.

Implication of time equation in mature and immature area of ramp using time driven activity-based costing

Malaysia currently accounts for 28% of world palm oil production and 33% of world exports. Being one of the biggest producers and exporters of palm oil and palm oil products, Malaysia has an important role to play in fulfilling the growing global need for oils and fats sustainably. In recent times, few problems have actually happened in this plantation which are difficult to establish a time equation for analyzing the variation of activities, the rate establishment is unsuitable to display the connection between resources supplied and the practical capacity and the manager does not have a method for monitoring capacity usage and unused capacity. The aim of this work is to develop the time equation of mature and immature area at ramp for a better accuracy. Time driven activity-based costing (TDABC) is implemented because the time is successfully measured, the idle capacity is correctly determined and the capacity used and the unused capacity are differently listed. This work considers a data in 2017 to develop the solution. This work found that in the mature area from the available capacity utilization, ramp has high unused capacity with 67492.80 min which means the resources should be forecast properly in future. Meanwhile in the immature area, ramp has closest value to the practical capacity with 6667.20 min and RM5667.12 which indicates the company properly utilizes their resources. Therefore, TDABC provides more comprehensive understanding of practical resources and its associated costs while measuring processes and encouraging quality improvement.