Abstract: The purpose of this study is to provide some empirical evidence about implementing Activity-Based Costing (ABC) in the hospitality industry in Iran. For this purpose, we consider the Tabriz International Hotel as our sample hotel and then gather the relevant data from its cost accounting system in 2012. Then, we use ABC as our costing method and compare the cost of each service unit with that cost which had been extracted for the traditional costing method. The results show a different cost per unit for two methods. Also, because of its more precise and detailed provided information, an ABC system facilitates the decision-making process for managers on decisions related to profitability analysis, budgeting, pricing, and so on.
Abstract: Construction technology and on-site construction activities have a direct influence on the life cycle costs of energy efficiently renovated apartment buildings. The systematic inadequacies of the External Thermal Insulation Composite System (ETICS) which occur during the construction phase increase the risk for all stakeholders, reduce mechanical durability and increase the life cycle costs of the building. The economic effect of these shortcomings can be minimised if the risk of the most significant on-site activities is recognised. The objective of the presented ETICS economic assessment concept is to evaluate the economic influence of on-site shortcomings and reveal their significance to the foreseeable future repair costs. The model assembles repair techniques, discusses their direct cost calculation methods, argues over the proper usage of net present value over the life cycle of the building, and proposes a simulation tool to evaluate the risk of on-site activities. As the technique is dependent on the selected real interest rate, a sensitivity analysis is anticipated to determine the validity of the recommendations. After the verification of the model on the sample buildings by the industry, it is expected to increase economic rationality of resource allocation and reduce high-risk systematic shortcomings during the construction process of ETICS.
Abstract: Because of the easy applying and not costing too much, ultrasonic pulse velocity (UPV) is one of the most used non-destructive techniques to determine concrete characteristics along with impact-echo, Schmidt rebound hammer (SRH) and pulse-echo. This article investigates the relationship between UPV and compressive strength of hybrid fiber reinforced concretes. Water/cement ratio (w/c) was kept at 0.4 for all concrete mixes. Compressive strength of concrete was targeted at 35 MPa. UPV testing and compressive strength tests were carried out at the curing age of 28 days. The UPV of concrete containing steel fibers has been found to be higher than plain concrete for all the testing groups. It is decided that there is not a certain relationship between fiber addition and strength.
Abstract: The present study aimed to assess the cost of money based on separating deposits and identifying actions and costs affecting in the process of cost of money in EN Bank of Iran (also known as Eghtesad Novin Bank). The method to calculate the cost of money is based on Activity-Based Costing (ABC). To conduct the study, the required data including deposits in banks and absorbed costs related to the same deposits were extracted from the financial statements of the bank. In order to cost the bank services properly as well as determining the commercial strategies required by commercial units, the data are precisely studied and the cost of each deposit is calculated according to the ABC. Eventually, the factors helping to improve the cost management and also a new model to calculate the cost of money in the bank are presented by some applicable formulas. Furthermore, some offers have been provided for users of both sections, in the practical section in commercial units and the theoretical one in universities.
Abstract: Highly developed technology and highly competitive
global market highlight the important role of competitive advantages
and operation performances in sustainable company operation.
Activity-Based Costing (ABC) provides accurate operation cost and
operation performance information. Rich literatures provide relevant
research with cases study on Activity-Based Costing application, but
the research on cause relationship between key success factors and its
specific outcome, such as profitability or share market are few. These
relationships provide the ways to handle the key success factors to
achieve the specific outcomes for ensuring to promote the competitive
advantages and operation performances. The main purposes of this
research are exploring the key success paths by Key Success Paths
approach which will lead the ways to apply Activity-Base Costing.
The Key Success Paths is the innovative method which is exploring
the cause relationships and explaining what are the effects of key
success factors to specific outcomes of Activity-Based Costing
implementation. The cause relationships between key success factors
and successful specific outcomes are Key Success Paths (KSPs). KSPs
are the guidelines to lead the cost management strategies to achieve the
goals of competitive advantages and operation performances. The
research findings indicate that good management system design may
affect the well outcomes of Activity-Based Costing application and
achieve to outstanding competitive advantage, operating performance
and profitability as well by KSPs exploration.
Abstract: Revenue leakages are one of the major challenges
manufacturers face in production processes, as most of the input
materials that should emanate as products from the lines are lost as
waste. Rather than generating income from material input which is
meant to end-up as products, losses are further incurred as costs in
order to manage waste generated. In addition, due to the lack of a
clear view of the flow of resources on the lines from input to output
stage, acquiring information on the true cost of waste generated have
become a challenge. This has therefore given birth to the
conceptualization and implementation of waste minimization
strategies by several manufacturing industries. This paper reviews the
principles and applications of three environmental management
accounting tools namely Activity-based Costing (ABC), Life-Cycle
Assessment (LCA) and Material Flow Cost Accounting (MFCA) in
the manufacturing industry and their effectiveness in curbing revenue
leakages. The paper unveils the strengths and limitations of each of
the tools; beaming a searchlight on the tool that could allow for
optimal resource utilization, transparency in production process as
well as improved cost efficiency. Findings from this review reveal
that MFCA may offer superior advantages with regards to the
provision of more detailed information (both in physical and
monetary terms) on the flow of material inputs throughout the
production process compared to the other environmental accounting
tools. This paper therefore makes a case for the adoption of MFCA as
a viable technique for the identification and reduction of waste in
production processes, and also for effective decision making by
production managers, financial advisors and other relevant
stakeholders.
Abstract: Presently, it is necessary to ensure the sustainable
development of passenger and freight transport. Increasing
performance of road freight has had a negative impact to environment
and society. It is therefore necessary to increase the competitiveness
of intermodal transport, which is more environmentally friendly. The
study describes the effectiveness of logistical centers realization for
companies and society and research how the partial internalization of
external costs reflected in the efficient use of these centers and
increase the competitiveness of intermodal transport to road freight.
In our research, we use the method of comparative analysis and
market research to describe the advantages of logistic centers for their
users as well as for society as a whole. Method normal costing is used
for calculation infrastructure and total costs, method of conversion
costing for determine the external costs. We modelled total society
costs for road freight transport and inter modal transport chain (we
assumed that most of the traffic is carried by rail) with different
loading schemes for condition in the Slovak Republic. Our research
has shown that higher utilization of inter modal transport chain do
good not only for society, but for companies providing freight
services too. Increase in use of inter modal transport chain can bring
many benefits to society that do not bring direct immediate financial
return. They often bring the multiplier effects, such as greater use of
environmentally friendly transport mode and reduce the total society
costs.
Abstract: Standard processes, similar and limited production
lines, the production of high direct costs will be more accurate than
the use of parts of the traditional cost systems in the literature.
However, direct costs, overhead expenses, in turn, decrease the
burden of increasingly sophisticated production facilities, a situation
that led the researchers to look for the cost of traditional systems of
alternative techniques. Variety cost management approaches for
example Total quality management (TQM), just-in-time (JIT),
benchmarking, kaizen costing, targeting cost, life cycle costs (LLC),
activity-based costing (ABC) value engineering have been
introduced. Management and cost applications have changed over the
past decade and will continue to change. Modern cost systems can
provide relevant and accurate cost information. These methods
provide the decisions about customer, product and process
improvement. The aim of study is to describe and explain the
adoption and application of costing systems in SME. This purpose
reports on a survey conducted during 2014 small and medium sized
enterprises (SME) in Ankara. The survey results were evaluated
using SPSS18 package program.
Abstract: It is widely assumed that the case of Customs Supply Chain is classified as a complex system, due to not only the variety and large number of actors, but also their complex structural links, and the interactions between these actors, that’s why this system is subject to various types of Risks. The economic, political and social impacts of those risks are highly detrimental to countries, businesses and the public, for this reason, Risk management in the customs supply chain is becoming a crucial issue to ensure the sustainability, security and safety. The main characteristic of customs risk management approach is determining which goods and means of transport should be examined? To what extend? And where future compliance resources should be directed? The purposes of this article are, firstly to deal with the concept of customs supply chain, secondly present our risk management approach based on Cross Activity Based Costing (ABC) Method as an interactive tool to support decision making in customs risk management. Finally, analysis of case study of Moroccan customs to putting theory into practice and will thus draw together the various elements of a structured and efficient risk management approach.
Abstract: Third-party warehousing logistics has an important role in the development of external logistics. At present, the third-party logistics in our country is still a new industry, the accounting system has not yet been established, the current financial accounting system of third-party warehousing logistics is mainly in the traditional way of thinking, and only able to provide the total cost information of the entire enterprise during the accounting period, unable to reflect operating indirect cost information. In order to solve the problem of third-party logistics industry cost information distortion, improve the level of logistics cost management, the paper combines theoretical research and case analysis method to reflect cost allocation by building third-party logistics costing model using Time-Driven Activity-Based Costing(TDABC), and takes S company as an example to account and control the warehousing logistics cost.Based on the idea of “Products consume activities and activities consume resources”, TDABC put time into the main cost driver and use time-consuming equation resources assigned to cost objects. In S company, the objects focuses on three warehouse, engaged with warehousing and transportation (the second warehouse, transport point) service. These three warehouse respectively including five departments, Business Unit, Production Unit, Settlement Center, Security Department and Equipment Division, the activities in these departments are classified by in-out of storage forecast, in-out of storage or transit and safekeeping work. By computing capacity cost rate, building the time-consuming equation, the paper calculates the final operation cost so as to reveal the real cost.The numerical analysis results show that the TDABC can accurately reflect the cost allocation of service customers and reveal the spare capacity cost of resource center, verifies the feasibility and validity of TDABC in third-party logistics industry cost accounting. It inspires enterprises focus on customer relationship management and reduces idle cost to strengthen the cost management of third-party logistics enterprises.
Abstract: Complex power flow distribution factors, which relate line complex power flows to the bus injected complex powers, have been widely used in various power system planning and analysis studies. In particular, AC distribution factors have been used extensively in the recent power and energy pricing studies in free electricity market field. As was demonstrated in the existing literature, many of the electricity market related costing studies rely on the use of the distribution factors. These known distribution factors, whether the injection shift factors (ISF’s) or power transfer distribution factors (PTDF’s), are linear approximations of the first order sensitivities of the active power flows with respect to various variables. This paper presents a novel model for evaluating the universal distribution factors (UDF’s), which are appropriate for an extensive range of power systems analysis and free electricity market studies. These distribution factors are used for the calculations of lines complex power flows and its independent of bus power injections, they are compact matrix-form expressions with total flexibility in determining the position on the line at which line flows are measured. The proposed approach was tested on IEEE 9-Bus system. Numerical results demonstrate that the proposed approach is very accurate compared with exact method.
Abstract: Activity-Based Costing (ABC) which has become an important aspect of manufacturing/service organizations can be defined as a methodology that measures the cost and performance of activities, resources and cost objects. It can be considered as an alternative paradigm to traditional cost-based accounting systems. The objective of this paper is to illustrate an application of ABC method and to compare the results of ABC with traditional costing methods. The results of the application highlight the weak points of traditional costing methods and an S-Curve obtained is used to identify the undercosted and overcosted products of the firm.
Abstract: increased competition and increased costs of
designing made it important for the firms to identify the right
products and the right methods for manufacturing the products. Firms
should focus on customers and identify customer demands directly to
design the right products. Several management methods and
techniques that are currently available improve one or more functions
or processes in an industry and do not take the complete product life
cycle into consideration. On the other hand target costing is a method
/ philosophy that takes financial, manufacturing and customer aspects
into consideration during designing phase and helps firms in making
product design decisions to increase the profit / value of the
company. It uses various techniques to identify customer demands, to
decrease costs of manufacturing and finally to achieve strategic goals.
Target Costing forms an integral part of total product design /
redesign based on strategic plans.
Abstract: This paper has presented research in progress
concerning the contribution of target costing approach to
achievement competitive price in the Iraqi firm. The title of the
paper is one of the subjects that get large concerns in the finance and
business world in the present time. That is because many competitive
firms have appeared in the regional and global markets and the rapid
changes that covered all fields of life. On the other hand, this paper
concentrated on lack knowledge of the industrial firms, regarding the
significant role of target cost for achieving the competitive prices.
The paper depends on the main supposition, using the competitive
price to get the target cost in the industrial firms. In order to achieve
competitive advantage in business world the firms should rely on
modern methods to manage cost and profit. From strategic
perspective the target cost achieves a so powerful competitive
advantage represented in cost reduction. Nevertheless the target cost
does not exclude the calculation and survey of costs during the
production process. Products- estimated costs are calculated and
compared with the target costs.
Abstract: New generation mobile communication networks have
the ability of supporting triple play. In order that, Orthogonal
Frequency Division Multiplexing (OFDM) access techniques have
been chosen to enlarge the system ability for high data rates
networks. Many of cross-layer modeling and optimization schemes
for Quality of Service (QoS) and capacity of downlink multiuser
OFDM system were proposed. In this paper, the Maximum Weighted
Capacity (MWC) based resource allocation at the Physical (PHY)
layer is used. This resource allocation scheme provides a much better
QoS than the previous resource allocation schemes, while
maintaining the highest or nearly highest capacity and costing similar
complexity. In addition, the Delay Satisfaction (DS) scheduling at the
Medium Access Control (MAC) layer, which allows more than one
connection to be served in each slot is used. This scheduling
technique is more efficient than conventional scheduling to
investigate both of the number of users as well as the number of
subcarriers against system capacity. The system will be optimized for
different operational environments: the outdoor deployment scenarios
as well as the indoor deployment scenarios are investigated and also
for different channel models. In addition, effective capacity approach
[1] is used not only for providing QoS for different mobile users, but
also to increase the total wireless network's throughput.
Abstract: This paper argues that a product development exercise
involves in addition to the conventional stages, several decisions
regarding other aspects. These aspects should be addressed
simultaneously in order to develop a product that responds to the
customer needs and that helps realize objectives of the stakeholders
in terms of profitability, market share and the like. We present a
framework that encompasses these different development
dimensions. The framework shows that a product development
methodology such as the Quality Function Deployment (QFD) is the
basic tool which allows definition of the target specifications of a
new product. Creativity is the first dimension that enables the
development exercise to live and end successfully. A number of
group processes need to be followed by the development team in
order to ensure enough creativity and innovation. Secondly,
packaging is considered to be an important extension of the product.
Branding strategies, quality and standardization requirements,
identification technologies, design technologies, production
technologies and costing and pricing are also integral parts to the
development exercise. These dimensions constitute the proposed
framework. The paper also presents a mathematical model used to
calculate the design targets based on the target costing principle. The
framework is used to study a case of a new product development in
the telecommunications services sector.
Abstract: Activity-Based Costing (ABC) represents an
alternative paradigm to traditional cost accounting system and
it often provides more accurate cost information for decision
making such as product pricing, product mix, and make-orbuy
decisions. ABC models the causal relationships between
products and the resources used in their production and traces
the cost of products according to the activities through the use
of appropriate cost drivers. In this paper, the implementation
of the ABC in a manufacturing system is analyzed and a
comparison with the traditional cost based system in terms of
the effects on the product costs are carried out to highlight the
difference between two costing methodologies. By using this
methodology, a valuable insight into the factors that cause the
cost is provided, helping to better manage the activities of the
company.