Costing improvement of remanufacturing crankshaft by integrating Mahalanobis-Taguchi System and Activity based Costing

Science.gov (United States)

Abu, M. Y.; Nor, E. E. Mohd; Rahman, M. S. Abd

2018-04-01

Integration between quality and costing system is very crucial in order to achieve an accurate product cost and profit. Current practice by most of remanufacturers, there are still lacking on optimization during the remanufacturing process which contributed to incorrect variables consideration to the costing system. Meanwhile, traditional costing accounting being practice has distortion in the cost unit which lead to inaccurate cost of product. The aim of this work is to identify the critical and non-critical variables during remanufacturing process using Mahalanobis-Taguchi System and simultaneously estimate the cost using Activity Based Costing method. The orthogonal array was applied to indicate the contribution of variables in the factorial effect graph and the critical variables were considered with overhead costs that are actually demanding the activities. This work improved the quality inspection together with costing system to produce an accurate profitability information. As a result, the cost per unit of remanufactured crankshaft of MAN engine model with 5 critical crankpins is MYR609.50 while Detroit engine model with 4 critical crankpins is MYR1254.80. The significant of output demonstrated through promoting green by reducing re-melting process of damaged parts to ensure consistent benefit of return cores.

Activity-Based Costing: A Cost Management Tool.

Science.gov (United States)

Turk, Frederick J.

1993-01-01

In college and university administration, overhead costs are often charged to programs indiscriminately, whereas the support activities that underlie those costs remain unanalyzed. It is time for institutions to decrease ineffective use of resources. Activity-based management attributes costs more accurately and can improve efficiency. (MSE)

Fuzzy Activity Based Life Cycle Costing For Repairable Equipment

Directory of Open Access Journals (Sweden)

Mulubrhan Freselam

2016-01-01

Full Text Available Life-cycle cost (LCC is the much known method used for decision making that considers all costs in the life of a system or equipment. Predicting LCCs is fraught with potential errors, owing to the uncertainty in future events, future costs, interest rates, and even hidden costs. These uncertainties have a direct impact on the decision making. Activity based LCC is used to identify the activities and cost drivers in acquisition, operation and maintenance phase. This activity based LCC is integrated with fuzzy set theory and interval mathematics to model these uncertainties. Day–Stout–Warren (DSW algorithm and the vertex method are then used to evaluate competing alternatives. A case of two pumps (Pump A and Pump B are taken and their LCC is analysed using the developed model. The equivalent annual cost of Pump B is greater than Pump A, which leads the decision maker to choose Pump A over Pump B.

Time-driven activity-based costing: a driver for provider engagement in costing activities and redesign initiatives.

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McLaughlin, Nancy; Burke, Michael A; Setlur, Nisheeta P; Niedzwiecki, Douglas R; Kaplan, Alan L; Saigal, Christopher; Mahajan, Aman; Martin, Neil A; Kaplan, Robert S

2014-11-01

To date, health care providers have devoted significant efforts to improve performance regarding patient safety and quality of care. To address the lagging involvement of health care providers in the cost component of the value equation, UCLA Health piloted the implementation of time-driven activity-based costing (TDABC). Here, the authors describe the implementation experiment, share lessons learned across the care continuum, and report how TDABC has actively engaged health care providers in costing activities and care redesign. After the selection of pilots in neurosurgery and urology and the creation of the TDABC team, multidisciplinary process mapping sessions, capacity-cost calculations, and model integration were coordinated and offered to engage care providers at each phase. Reviewing the maps for the entire episode of care, varying types of personnel involved in the delivery of care were noted: 63 for the neurosurgery pilot and 61 for the urology pilot. The average cost capacities for care coordinators, nurses, residents, and faculty were $0.70 (range $0.63-$0.75), $1.55 (range $1.28-$2.04), $0.58 (range $0.56-$0.62), and $3.54 (range $2.29-$4.52), across both pilots. After calculating the costs for material, equipment, and space, the TDABC model enabled the linking of a specific step of the care cycle (who performed the step and its duration) and its associated costs. Both pilots identified important opportunities to redesign care delivery in a costconscious fashion. The experimentation and implementation phases of the TDABC model have succeeded in engaging health care providers in process assessment and costing activities. The TDABC model proved to be a catalyzing agent for cost-conscious care redesign.

Why activity based costing (ABC) is still tagging behind the traditional costing in Malaysia?

OpenAIRE

Rasiah, Devinaga

2011-01-01

This study compares activity-based costing (ABC) model and traditional costing method in Malaysia. Activity based costing (ABC) which was developed into the manufacturing/service sectors in Malaysia. It calculates the cost and performance of activities, resources and cost objects. It can be considered as an alternative model to Traditional Cost-based accounting systems. In this study the results indicated that most operations managers believed that their present cost systems were adequate for...

[Cost management: the implementation of the activity-based costing method in sterile processing department].

Science.gov (United States)

Jericó, Marli de Carvalho; Castilho, Valéria

2010-09-01

This exploratory case study was performed aiming at implementing the Activity-based Costing (ABC) method in a sterile processing department (SPD) of a major teaching hospital. Data collection was performed throughout 2006. Documentary research techniques and non participant closed observation were used. The ABC implementation allowed for learning the activity-based costing of both the chemical and physical disinfection cycle/load: (dollar 9.95) and (dollar 12.63), respectively; as well as the cost for sterilization by steam under pressure (autoclave) (dollar 31.37) and low temperature steam and gaseous formaldehyde sterilization (LTSF) (dollar 255.28). The information provided by the ABC method has optimized the overall understanding of the cost driver process and provided the foundation for assessing performance and improvement in the SPD processes.

Perception of activity based costing in Australian universities

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Monir Zaman

2011-07-01

Full Text Available The study examines the perception of activity based costing (ABC in Australian universities. Using a questionnaire survey, data was collected from twenty-six finance directors and/or chief financial officers in Australian universities. The perception of ABC implementation in Australian universities depends on many variables including the understanding of ABC, consideration of ABC as a strategic cost management system, the role of ABC in reduction of expenses, consideration of ABC as a valuable tool to enhance overhead cost allocation, and consideration of ABC as an effective strategic cost management system designed to incorporate the university’s critical input, output, and process variables resulting in value creation. The result of regression analysis provides significant and positive association between the decision to implement ABC in Australian universities and both the treatment of ABC as a strategic cost management system and the degree of both senior management and internal champion support. The findings indicate substantial differences in the allocation of the overhead costs between ABC and traditional costing systems. The result also reveals that many Australian universities using the ABC method receive benefits in improving cost reduction and better resource allocation with revenue surplus. Furthermore, the study develops a generic model of cost pools and drivers of ABC implementation in Australian universities.

Nuclear power company activity based costing management analysis

International Nuclear Information System (INIS)

Xu Dan

2012-01-01

With Nuclear Energy Industry development, Nuclear Power Company has the continual promoting stress of inner management to the sustainable marketing operation development. In view of this, it is very imminence that Nuclear Power Company should promote the cost management levels and built the nuclear safety based lower cost competitive advantage. Activity based costing management (ABCM) transfer the cost management emphases from the 'product' to the 'activity' using the value chain analysis methods, cost driver analysis methods and so on. According to the analysis of the detail activities and the value chains, cancel the unnecessary activity, low down the resource consuming of the necessary activity, and manage the cost from the source, achieve the purpose of reducing cost, boosting efficiency and realizing the management value. It gets the conclusion from the detail analysis with the nuclear power company procedure and activity, and also with the selection to 'pieces analysis' of the important cost related project in the nuclear power company. The conclusion is that the activities of the nuclear power company has the obviously performance. It can use the management of ABC method. And with the management of the procedure and activity, it is helpful to realize the nuclear safety based low cost competitive advantage in the nuclear power company. (author)

Activity based costing the performance breakthrough

CERN Document Server

Turney, Peter B B

1996-01-01

Activity-based costing is a method of measuring the cost and performance of activities, products and customers. It is increasingly being seen as a more accurate method of costing than conventional costing systems, which are being superseded by the fact that automation means that direct material and labour consumption is now a far less accurate means of apportioning overheads. This practical book outlines why conventional cost systems fail, before going on to cover the advantages of activity-based costing, and describing how to put the system in place successfully, and how to apply the lessons learnt quickly. The book takes the reader step-by-step through the various processes involved, from setting up the system, through its operation, to evaluation of the results.

Determination of chest x-ray cost using activity based costing ...

African Journals Online (AJOL)

Background: Activity based costing (ABC) is an approach to get insight of true costs and to solve accounting problems. It provides more accurate information on product cost than conventional accounting system. The purpose of this study was to identify detailed resource consumption for chest x-ray procedure. Methods: ...

Operations Assessment of Launch Vehicle Architectures using Activity Based Cost Models

Science.gov (United States)

Ruiz-Torres, Alex J.; McCleskey, Carey

2000-01-01

The growing emphasis on affordability for space transportation systems requires the assessment of new space vehicles for all life cycle activities, from design and development, through manufacturing and operations. This paper addresses the operational assessment of launch vehicles, focusing on modeling the ground support requirements of a vehicle architecture, and estimating the resulting costs and flight rate. This paper proposes the use of Activity Based Costing (ABC) modeling for this assessment. The model uses expert knowledge to determine the activities, the activity times and the activity costs based on vehicle design characteristics. The approach provides several advantages to current approaches to vehicle architecture assessment including easier validation and allowing vehicle designers to understand the cost and cycle time drivers.

The effects of age, gender, and crash types on drivers' injury-related health care costs.

Science.gov (United States)

Shen, Sijun; Neyens, David M

2015-04-01

There are many studies that evaluate the effects of age, gender, and crash types on crash related injury severity. However, few studies investigate the effects of those crash factors on the crash related health care costs for drivers that are transported to hospital. The purpose of this study is to examine the relationships between drivers' age, gender, and the crash types, as well as other crash characteristics (e.g., not wearing a seatbelt, weather condition, and fatigued driving), on the crash related health care costs. The South Carolina Crash Outcome Data Evaluation System (SC CODES) from 2005 to 2007 was used to construct six separate hierarchical linear regression models based on drivers' age and gender. The results suggest that older drivers have higher health care costs than younger drivers and male drivers tend to have higher health care costs than female drivers in the same age group. Overall, single vehicle crashes had the highest health care costs for all drivers. For males older than 64-years old sideswipe crashes are as costly as single vehicle crashes. In general, not wearing a seatbelt, airbag deployment, and speeding were found to be associated with higher health care costs. Distraction-related crashes are more likely to be associated with lower health care costs in most cases. Furthermore this study highlights the value of considering drivers in subgroups, as some factors have different effects on health care costs in different driver groups. Developing an understanding of longer term outcomes of crashes and their characteristics can lead to improvements in vehicle technology, educational materials, and interventions to reduce crash-related health care costs. Copyright © 2015 Elsevier Ltd. All rights reserved.

FORMALIZING PRODUCT COST DISTORTION: The Impact of Volume-Related Allocation Bases on Cost Information

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Johnny Jermias

2003-09-01

Full Text Available The purpose o f this study is to formally analyze product cost distortions resulting from the process of allocating costs to products based on Activity-Based Costing (ABC and the conventional product costing systems. The model developed in this paper rigorously shows the impact of treating costs that are not volume related as if they are. The model demonstrates that the source of product cost distortion is the difference between the proportion of driver used by each product in ABC and the proportion of the base used by the same product in the conventional costing systems. The difference arises because the conventional costing systems ignore the existence of batch-related and product-related costs. The model predicts a positive association between volume and size diversity with product cost distortions. When interaction between volume and size diversity exists, the distortion is either mitigated or exacerbated. The magnitude of the distortion is jointly determined by the size of the differences and the size of the total indirect costs.

Activity-based costing via an information system: an application created for a breast imaging center.

Science.gov (United States)

Hawkins, H; Langer, J; Padua, E; Reaves, J

2001-06-01

Activity-based costing (ABC) is a process that enables the estimation of the cost of producing a product or service. More accurate than traditional charge-based approaches, it emphasizes analysis of processes, and more specific identification of both direct and indirect costs. This accuracy is essential in today's healthcare environment, in which managed care organizations necessitate responsible and accountable costing. However, to be successfully utilized, it requires time, effort, expertise, and support. Data collection can be tedious and expensive. By integrating ABC with information management (IM) and systems (IS), organizations can take advantage of the process orientation of both, extend and improve ABC, and decrease resource utilization for ABC projects. In our case study, we have examined the process of a multidisciplinary breast center. We have mapped the constituent activities and established cost drivers. This information has been structured and included in our information system database for subsequent analysis.

Time-driven Activity-based Costing More Accurately Reflects Costs in Arthroplasty Surgery.

Science.gov (United States)

Akhavan, Sina; Ward, Lorrayne; Bozic, Kevin J

2016-01-01

Cost estimates derived from traditional hospital cost accounting systems have inherent limitations that restrict their usefulness for measuring process and quality improvement. Newer approaches such as time-driven activity-based costing (TDABC) may offer more precise estimates of true cost, but to our knowledge, the differences between this TDABC and more traditional approaches have not been explored systematically in arthroplasty surgery. The purposes of this study were to compare the costs associated with (1) primary total hip arthroplasty (THA); (2) primary total knee arthroplasty (TKA); and (3) three surgeons performing these total joint arthroplasties (TJAs) as measured using TDABC versus traditional hospital accounting (TA). Process maps were developed for each phase of care (preoperative, intraoperative, and postoperative) for patients undergoing primary TJA performed by one of three surgeons at a tertiary care medical center. Personnel costs for each phase of care were measured using TDABC based on fully loaded labor rates, including physician compensation. Costs associated with consumables (including implants) were calculated based on direct purchase price. Total costs for 677 primary TJAs were aggregated over 17 months (January 2012 to May 2013) and organized into cost categories (room and board, implant, operating room services, drugs, supplies, other services). Costs derived using TDABC, based on actual time and intensity of resources used, were compared with costs derived using TA techniques based on activity-based costing and indirect costs calculated as a percentage of direct costs from the hospital decision support system. Substantial differences between cost estimates using TDABC and TA were found for primary THA (USD 12,982 TDABC versus USD 23,915 TA), primary TKA (USD 13,661 TDABC versus USD 24,796 TA), and individually across all three surgeons for both (THA: TDABC = 49%-55% of TA total cost; TKA: TDABC = 53%-55% of TA total cost). Cost

The ABCs of Activity-Based Costing: A Cost Containment and Reallocation Tool.

Science.gov (United States)

Turk, Frederick J.

1992-01-01

This article describes activity-based costing (ABC) and how this tool may help management understand the costs of major activities and identify possible alternatives. Also discussed are the traditional costing systems used by higher education and ways of applying ABC to higher education. (GLR)

Activity-Based Costing Using Multicriteria Drivers: An Accounting Proposal to Boost Companies Toward Sustainability

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Heitor F. Marinho Neto

2018-05-01

Full Text Available Recognizing that natural environment is reaching its maximum limits in providing resources and diluting the waste generated by human production systems, efforts toward more sustainable production systems are mandatory to secure the development of future generations. For this purpose, changing the productivity model adopted by companies that are almost exclusively rooted on circulating money to generate profit, named business as usual, is an important issue. In this sense, an alternative would be establishing the relationship of stocks and flows of energy, material, and information with environmental, economic and social outcomes, thus resulting in new accounting approaches. This work aims to propose an activity-based costing (ABC based on multicriteria drivers including economic, emissions, and emergy (with an “m” values. The proposed ABC costing allocates each one of the multicriteria drivers into a specific part of the sustainability conceptual model, in an attempt to embrace a holistic perspective and allow for a sustainable-based decision, rather than considering purely economic drivers. The goal programming (GP method is considered so as to support a decision based on multicriteria aspects. Results show that the proposed accounting approach known as ABCsustain allows for decisions toward a company's sustainability by acting on both the amount and kind of a company's product that should be managed, as well as on the effective increase of a specific company's activity or process. The proposed ABCsustain could make the insertion of environmental issues into companies strategic planning more effective. It is expected that environmental issues go beyond a simple diagnoses and begin to be considered as action in factum in the companies' decisions toward achieving a more sustainable world system.

Evaluation of activity-based costing versus resource-based relative value costing.

Science.gov (United States)

Berlin, Mark F; Smith, Tommy H

2004-01-01

Activity-based costing (ABC) and relative value units costing (RVU) are two approaches that a practice manager can use to determine the cost of physician services. Each costing approach has features that provide distinction as well as differentiation in the cost estimates that are estimated. This paper will provide cost estimates under each approach along with cost estimates under a hybrid approach that merges features from each costing approach known as the ABC-RVU costing technique. A comparison of the results will be provided.

Applying activity-based costing to healthcare settings.

Science.gov (United States)

Canby, J B

1995-02-01

Activity-based costing (ABC) focuses on processes that drive cost. By tracing healthcare activities back to events that generate cost, a more accurate measurement of financial performance is possible. This article uses ABC principles and techniques to determine costs associated with the x-ray process in a midsized outpatient clinic. The article also provides several tips for initiating an ABC cost system for an entire healthcare organization.

Activity-Based Costing & Warm Fuzzies - Costing, Presentation & Framing Influences on Decision-Making ~ A Business Optimization Simulation ~

OpenAIRE

Harrison, David Shelby

1998-01-01

Activity-Based Costing is presented in accounting text books as a costing system that can be used to make valuable managerial decisions. Accounting journals regularly report the successful implementations and benefits of activity-based costing systems for particular businesses. Little experimental or empirical evidence exists, however, that has demonstrated the benefits of activity-based costing under controlled conditions. Similarly, although case studies report conditions that may or may...

Understanding Time-driven Activity-based Costing.

Science.gov (United States)

Sharan, Alok D; Schroeder, Gregory D; West, Michael E; Vaccaro, Alexander R

2016-03-01

Transitioning to a value-based health care system will require providers to increasingly scrutinize their outcomes and costs. Although there has been a great deal of effort to understand outcomes, cost accounting in health care has been a greater challenge. Currently the cost accounting methods used by hospitals and providers are based off a fee-for-service system. As resources become increasingly scarce and the health care system attempts to understand which services provide the greatest value, it will be critically important to understand the true costs of delivering a service. An understanding of the true costs of a particular service will help providers make smarter decisions on how to allocate and utilize resources as well as determine which activities are nonvalue added. Achieving value will require providers to have a greater focus on accurate outcome data as well as better methods of cost accounting.

An Analysis Of Activity Based Costing Between Benefit And Cost For Its Implementation

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Dadan Soekardan

2015-08-01

Full Text Available This research discusses how the importance of adopting activity-based costing for the company in order to carry out its business strategy. One objective is to implement activity based costing cost efficiency by cutting costs incurred for non-value added activity. But the phenomenon shows that there are still many companies organizations are not interested in adopting the activity based costing. This article also outlines the advantages and limitations in adopting activity based costing for the company.

Time-Driven Activity-Based Costing in Emergency Medicine.

Science.gov (United States)

Yun, Brian J; Prabhakar, Anand M; Warsh, Jonathan; Kaplan, Robert; Brennan, John; Dempsey, Kyle E; Raja, Ali S

2016-06-01

Value in emergency medicine is determined by both patient-important outcomes and the costs associated with achieving them. However, measuring true costs is challenging. Without an understanding of costs, emergency department (ED) leaders will be unable to determine which interventions might improve value for their patients. Although ongoing research may determine which outcomes are meaningful, an accurate costing system is also needed. This article reviews current costing mechanisms in the ED and their pitfalls. It then describes how time-driven activity-based costing may be superior to these current costing systems. Time-driven activity-based costing, in addition to being a more accurate costing system, can be used for process improvements in the ED. Copyright © 2015 American College of Emergency Physicians. Published by Elsevier Inc. All rights reserved.

Costs and benefits of MDOT intelligent transportation system deployments.

Science.gov (United States)

2015-07-01

This report analyses costs and benefits of Intelligent Transportation Systems (ITS) deployed by : the Michigan Department of Transportation (MDOT). MDOT ITS focuses on traffic incident : management and also provide Freeway Courtesy Patrol services. A...

PENERAPAN ACTIVITY BASED COSTING SYSTEM DALAM PERHITUNGAN PROFITABILITAS PRODUK PADA UD. NIAGA BAKTI

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Fena Ulfa Aulia

2015-06-01

Full Text Available The Charge imposition of factory overhead based on traditional systems often cause distorted costs. One of efforts to overcome these distortions fees is with charging the costs  factory overhead  by the activity based costing. The use of activity based costing can also help companies that produce many products  in determining the level of profitability. Profitability indicates whether an enterprise has good prospects in the future for the company's survival. This research is a quantitative descriptive research conducted at UD NIAGA BAKTI engaged in the processing of tuna fish PETIS in Pamekasan located in the village of Konang, Subdistrict of Galis, Regency of Pamekasan. The type of data  used in this research is quantitative data obtained by direct observation and Interview. This techniques of research analysis calculates and compares the products profitability of PETIS by using traditional cost systems and costing system based activity. The results of this research indicates that there are differences in the principal cost of production and profitability UD NIAGA BAKTI by using activity based costing compared  Traditional Cost Systems.

Development of a practical costing method for hospitals.

Science.gov (United States)

Cao, Pengyu; Toyabe, Shin-Ichi; Akazawa, Kouhei

2006-03-01

To realize an effective cost control, a practical and accurate cost accounting system is indispensable in hospitals. In traditional cost accounting systems, the volume-based costing (VBC) is the most popular cost accounting method. In this method, the indirect costs are allocated to each cost object (services or units of a hospital) using a single indicator named a cost driver (e.g., Labor hours, revenues or the number of patients). However, this method often results in rough and inaccurate results. The activity based costing (ABC) method introduced in the mid 1990s can prove more accurate results. With the ABC method, all events or transactions that cause costs are recognized as "activities", and a specific cost driver is prepared for each activity. Finally, the costs of activities are allocated to cost objects by the corresponding cost driver. However, it is much more complex and costly than other traditional cost accounting methods because the data collection for cost drivers is not always easy. In this study, we developed a simplified ABC (S-ABC) costing method to reduce the workload of ABC costing by reducing the number of cost drivers used in the ABC method. Using the S-ABC method, we estimated the cost of the laboratory tests, and as a result, similarly accurate results were obtained with the ABC method (largest difference was 2.64%). Simultaneously, this new method reduces the seven cost drivers used in the ABC method to four. Moreover, we performed an evaluation using other sample data from physiological laboratory department to certify the effectiveness of this new method. In conclusion, the S-ABC method provides two advantages in comparison to the VBC and ABC methods: (1) it can obtain accurate results, and (2) it is simpler to perform. Once we reduce the number of cost drivers by applying the proposed S-ABC method to the data for the ABC method, we can easily perform the cost accounting using few cost drivers after the second round of costing.

The costs associated with adverse event procedures for an international HIV clinical trial determined by activity-based costing.

Science.gov (United States)

Chou, Victoria B; Omer, Saad B; Hussain, Hamidah; Mugasha, Christine; Musisi, Maria; Mmiro, Francis; Musoke, Philippa; Jackson, J Brooks; Guay, Laura A

2007-12-01

To determine costs for adverse event (AE) procedures for a large HIV perinatal trial by analyzing actual resource consumption using activity-based costing (ABC) in an international research setting. The AE system for an ongoing clinical trial in Uganda was evaluated using ABC techniques to determine costs from the perspective of the study. Resources were organized into cost categories (eg, personnel, patient care expenses, laboratory testing, equipment). Cost drivers were quantified, and unit cost per AE was calculated. A subset of time and motion studies was performed prospectively to observe clinic personnel time required for AE identification. In 18 months, there were 9028 AEs, with 970 (11%) reported as serious adverse events. Unit cost per AE was $101.97. Overall, AE-related costs represented 32% ($920,581 of $2,834,692) of all study expenses. Personnel ($79.30) and patient care ($11.96) contributed the greatest proportion of component costs. Reported AEs were predominantly nonserious (mild or moderate severity) and unrelated to study drug(s) delivery. Intensive identification and management of AEs to conduct clinical trials ethically and protect human subjects require expenditure of substantial human and financial resources. Better understanding of these resource requirements should improve planning and funding of international HIV-related clinical trials.

Comparison of the Ministry of Health's tariffs with the cost of radiology services using the activity-based costing method.

Science.gov (United States)

Kalhor, Rohollah; Amini, Saeed; Emami, Majid; Kakasoltani, Keivan; Rhamani, Nasim; Kalhor, Leila

2016-02-01

Efficient use of resources in organizations is one of the most important duties of managers. Appropriate allocation of resources can help managers to do this well. The aim of this study was to determine the cost of radiology services and to compare it with governmental tariffs (introduced by the Ministry of Health in Iran). This was a descriptive and applied study that was conducted using the retrospective approach. First, activity centers were identified on the basis of five main groups of hospital activities. Then, resources and resource drivers, activities, and hospital activity drivers were identified. At the next step, the activities related to the delivery of radiology process were identified. Last, through allocation of activities cost to the cost objects, the cost price of 66 services that were delivered in the radiology department were calculated. The data were collected by making checklists, using the hospital's information system, observations, and interviews. Finally, the data were analyzed using the non-parametric Wilcoxon test, Microsoft Excel, and SPSS software, version 18. The findings showed that from the total cost of wages, materials, and overhead obtained, the unit cost of the 66 cost objects (delivered services) in the Radiology Department were calculated using the ABC method (Price of each unit of Nephrostogram obtained $15.8 and Cystogram obtained $18.4). The Kolmogorov-Smirnov test indicated that the distribution of data of cost price using the ABC method was not normal (p = 0.000). The Wilcoxon test showed that there was a significant difference between the cost of services and the tariff of radiology services (p = 0.000). The cost of delivered services in radiology departments was significantly higher than approved tariffs of the Ministry of Health, which can have a negative impact on the quality of services.

Cost evaluation of clinical laboratory in Taiwan's National Health System by using activity-based costing.

Science.gov (United States)

Su, Bin-Guang; Chen, Shao-Fen; Yeh, Shu-Hsing; Shih, Po-Wen; Lin, Ching-Chiang

2016-11-01

To cope with the government's policies to reduce medical costs, Taiwan's healthcare service providers are striving to survive by pursuing profit maximization through cost control. This article aimed to present the results of cost evaluation using activity-based costing performed in the laboratory in order to throw light on the differences between costs and the payment system of National Health Insurance (NHI). This study analyzed the data of costs and income of the clinical laboratory. Direct costs belong to their respective sections of the department. The department's shared costs, including public expenses and administrative assigned costs, were allocated to the department's respective sections. A simple regression equation was created to predict profit and loss, and evaluate the department's break-even point, fixed cost, and contribution margin ratio. In clinical chemistry and seroimmunology sections, the cost per test was lower than the NHI payment and their major laboratory tests had revenues with the profitability ratio of 8.7%, while the other sections had a higher cost per test than the NHI payment and their major tests were in deficit. The study found a simple linear regression model as follows: "Balance=-84,995+0.543×income (R2=0.544)". In order to avoid deficit, laboratories are suggested to increase test volumes, enhance laboratory test specialization, and become marginal scale. A hospital could integrate with regional medical institutions through alliances or OEM methods to increase volumes to reach marginal scale and reduce laboratory costs, enhancing the level and quality of laboratory medicine.

ACTIVITY-BASED COSTING APLICATIONS IN THE CZECH REPUBLIC

OpenAIRE

Boris Popesko; Petr Novak

2008-01-01

The Article deals with the problem of Activity-Based Costing (ABC) utilization in conditions of the Czech Republic. Shortcoming of the traditional costing methods and advantages of Activity-Based Costing systems are explained in the opening part of this article. Major part of article is dedicated to presentation of advantages of utilization of ABC system in practice. Final part of article is focused on results of the authors’ research focused on the level of the cost management systems in the...

Peranan Metode Activity Based Costing Dalam Menentukan Cost of Goods Manufactured

OpenAIRE

Martusa, Riki; Darma, Stephanus Ryan; Carolina, Verani

2011-01-01

The purpose of this research is to know production process of a textile company in Bandung and to analyze the comparison between cost of goods manufactured calculation methods, that applied in the company (traditional costing method) and Activity Based Costing (ABC) method. The obatained data was performed monthly during the year 2009. Based on analysis result, Cost Of Goods Manufactured calculation for unpattern material using ABC method resulted the Cost Of Goods Manufactured that is lower ...

Cost Analysis of MRI Services in Iran: An Application of Activity Based Costing Technique

International Nuclear Information System (INIS)

Bayati, Mohsen; Mahboub Ahari, Alireza; Badakhshan, Abbas; Gholipour, Mahin; Joulaei, Hassan

2015-01-01

Considerable development of MRI technology in diagnostic imaging, high cost of MRI technology and controversial issues concerning official charges (tariffs) have been the main motivations to define and implement this study. The present study aimed to calculate the unit-cost of MRI services using activity-based costing (ABC) as a modern cost accounting system and to fairly compare calculated unit-costs with official charges (tariffs). We included both direct and indirect costs of MRI services delivered in fiscal year 2011 in Shiraz Shahid Faghihi hospital. Direct allocation method was used for distribution of overhead costs. We used micro-costing approach to calculate unit-cost of all different MRI services. Clinical cost data were retrieved from the hospital registering system. Straight-line method was used for depreciation cost estimation. To cope with uncertainty and to increase the robustness of study results, unit costs of 33 MRI services was calculated in terms of two scenarios. Total annual cost of MRI activity center (AC) was calculated at USD 400,746 and USD 532,104 based on first and second scenarios, respectively. Ten percent of the total cost was allocated from supportive departments. The annual variable costs of MRI center were calculated at USD 295,904. Capital costs measured at USD 104,842 and USD 236, 200 resulted from the first and second scenario, respectively. Existing tariffs for more than half of MRI services were above the calculated costs. As a public hospital, there are considerable limitations in both financial and administrative databases of Shahid Faghihi hospital. Labor cost has the greatest share of total annual cost of Shahid Faghihi hospital. The gap between unit costs and tariffs implies that the claim for extra budget from health providers may not be relevant for all services delivered by the studied MRI center. With some adjustments, ABC could be implemented in MRI centers. With the settlement of a reliable cost accounting system

Cost Analysis of MRI Services in Iran: An Application of Activity Based Costing Technique.

Science.gov (United States)

Bayati, Mohsen; Mahboub Ahari, Alireza; Badakhshan, Abbas; Gholipour, Mahin; Joulaei, Hassan

2015-10-01

Considerable development of MRI technology in diagnostic imaging, high cost of MRI technology and controversial issues concerning official charges (tariffs) have been the main motivations to define and implement this study. The present study aimed to calculate the unit-cost of MRI services using activity-based costing (ABC) as a modern cost accounting system and to fairly compare calculated unit-costs with official charges (tariffs). We included both direct and indirect costs of MRI services delivered in fiscal year 2011 in Shiraz Shahid Faghihi hospital. Direct allocation method was used for distribution of overhead costs. We used micro-costing approach to calculate unit-cost of all different MRI services. Clinical cost data were retrieved from the hospital registering system. Straight-line method was used for depreciation cost estimation. To cope with uncertainty and to increase the robustness of study results, unit costs of 33 MRI services was calculated in terms of two scenarios. Total annual cost of MRI activity center (AC) was calculated at USD 400,746 and USD 532,104 based on first and second scenarios, respectively. Ten percent of the total cost was allocated from supportive departments. The annual variable costs of MRI center were calculated at USD 295,904. Capital costs measured at USD 104,842 and USD 236, 200 resulted from the first and second scenario, respectively. Existing tariffs for more than half of MRI services were above the calculated costs. As a public hospital, there are considerable limitations in both financial and administrative databases of Shahid Faghihi hospital. Labor cost has the greatest share of total annual cost of Shahid Faghihi hospital. The gap between unit costs and tariffs implies that the claim for extra budget from health providers may not be relevant for all services delivered by the studied MRI center. With some adjustments, ABC could be implemented in MRI centers. With the settlement of a reliable cost accounting system

[Operating cost analysis of anaesthesia: activity based costing (ABC analysis)].

Science.gov (United States)

Majstorović, Branislava M; Kastratović, Dragana A; Vučović, Dragan S; Milaković, Branko D; Miličić, Biljana R

2011-01-01

Cost of anaesthesiology represent defined measures to determine a precise profile of expenditure estimation of surgical treatment, which is important regarding planning of healthcare activities, prices and budget. In order to determine the actual value of anaestesiological services, we started with the analysis of activity based costing (ABC) analysis. Retrospectively, in 2005 and 2006, we estimated the direct costs of anestesiological services (salaries, drugs, supplying materials and other: analyses and equipment.) of the Institute of Anaesthesia and Resuscitation of the Clinical Centre of Serbia. The group included all anesthetized patients of both sexes and all ages. We compared direct costs with direct expenditure, "each cost object (service or unit)" of the Republican Healthcare Insurance. The Summary data of the Departments of Anaesthesia documented in the database of the Clinical Centre of Serbia. Numerical data were utilized and the numerical data were estimated and analyzed by computer programs Microsoft Office Excel 2003 and SPSS for Windows. We compared using the linear model of direct costs and unit costs of anaesthesiological services from the Costs List of the Republican Healthcare Insurance. Direct costs showed 40% of costs were spent on salaries, (32% on drugs and supplies, and 28% on other costs, such as analyses and equipment. The correlation of the direct costs of anaestesiological services showed a linear correlation with the unit costs of the Republican Healthcare Insurance. During surgery, costs of anaesthesia would increase by 10% the surgical treatment cost of patients. Regarding the actual costs of drugs and supplies, we do not see any possibility of costs reduction. Fixed elements of direct costs provide the possibility of rationalization of resources in anaesthesia.

Activity-based Management of Logistic Costs in a Manufacturing Company: A Case of Increased Visibility of Logistics Costs in a Slovenian Paper Manufacturing Company

Directory of Open Access Journals (Sweden)

Julijana Krajnc

2012-01-01

Full Text Available Both the transparent reporting of logistics costs and the related accounting of their cost drivers present a significant factor for the successful management of material flows and the related logistics activities in production companies. These costs, which are mainly reported as part of overhead (indirect costs in such companies, usually remain hidden or are not explicitly visible when the traditional method of accounting is applied. The aim of this research is to create a model of activity-based accounting of logistics costs in a production company, and to test its efficiency in the disclosure of logistics costs compared with traditional cost accounting. The application of the model in a production company shows that an activity-based approach discloses as much as 108% more logistics costs at the level of a group of products than the traditional cost-accounting approach. Further, detailed information on logistics costs obtained in this way enables their more efficient management. Key words: logistics costs; activity-based costing; cost allocation; cost visibility; cost management

Activity-Based Costing (ABC and Time-Driven Activity-Based Costing (TDABC: Applicable Methods for University Libraries?

Directory of Open Access Journals (Sweden)

Kate-Riin Kont

2011-01-01

Full Text Available Objective – This article provides an overview of how university libraries research and adapt new cost accounting models, such as “activity-based costing” (ABC and “time-driven activity-based costing” (TDABC, focusing on the strengths and weaknesses of both methods to determine which of these two is suitable for application in university libraries.Methods – This paper reviews and summarizes the literature on cost accounting and costing practices of university libraries. A brief overview of the history of cost accounting, costing, and time and motion studies in libraries is also provided. The ABC and the TDABC method, designed as a revised and easier version of the ABC by Kaplan and Anderson (Kaplan & Anderson 2004 at the beginning of the 21st century, as well as the adoption and adaptation of these methods by university libraries are described, and their strengths and weaknesses, as well as their suitability for university libraries, are analyzed. Results – Cost accounting and costing studies in libraries have a long history, the first of these dating back to 1877. The development of cost accounting and time and motion studies can be seen as a natural evolution of techniques which were created to solve management problems. The ABC method is the best-known management accounting innovation of the last 20 years, and is already widely used in university libraries around the world. However, setting up an ABC system can be very costly, and the system needs to be regularly updated, which further increases its costs. The TDABC system can not only be implemented more quickly (and thus more cheaply, but also can be updated more easily than the traditional ABC, which makes the TDABC the more suitable method for university libraries.Conclusion – Both methods are suitable for university libraries. However, the ABC method can only be implemented in collaboration with an accounting department. The TDABC method can be tested and implemented by

Comparison of cost determination of both resource consumption accounting and time-driven activity-based costing systems in a healthcare setting.

Science.gov (United States)

Özyapıcı, Hasan; Tanış, Veyis Naci

2017-05-01

Objective The aim of the present study was to explore the differences between resource consumption accounting (RCA) and time-driven activity-based costing (TDABC) systems in determining the costs of services of a healthcare setting. Methods A case study was conducted to calculate the unit costs of open and laparoscopic gall bladder surgeries using TDABC and RCA. Results The RCA system assigns a higher cost both to open and laparoscopic gall bladder surgeries than TDABC. The total cost of unused capacity under the TDABC system is also double that in RCA. Conclusion Unlike TDABC, RCA calculates lower costs for unused capacities but higher costs for products or services in a healthcare setting in which fixed costs make up a high proportion of total costs. What is known about the topic? TDABC is a revision of the activity-based costing (ABC) system. RCA is also a new costing system that includes both the theoretical advantages of ABC and the practical advantages of German costing. However, little is known about the differences arising from application of TDABC and RCA. What does this paper add? There is no study comparing both TDABC and RCA in a single case study based on a real-world healthcare setting. Thus, the present study fills this gap in the literature and it is unique in the sense that it is the first case study comparing TDABC and RCA for open and laparoscopic gall bladder surgeries in a healthcare setting. What are the implications for practitioners? This study provides several interesting results for managers and cost accounting researchers. Thus, it will contribute to the spread of RCA studies in healthcare settings. It will also help the implementers of TDABC to revise data concerning the cost of unused capacity. In addition, by separating costs into fixed and variable, the paper will help managers to create a blended (combined) system that can improve both short- and long-term decisions.

Hands-On Experiences in Deploying Cost-Effective Ambient-Assisted Living Systems.

Science.gov (United States)

Dasios, Athanasios; Gavalas, Damianos; Pantziou, Grammati; Konstantopoulos, Charalampos

2015-06-18

Older adults' preferences to remain independent in their own homes along with the high costs of nursing home care have motivated the development of Ambient Assisted Living (AAL) technologies which aim at improving the safety, health conditions and wellness of the elderly. This paper reports hands-on experiences in designing, implementing and operating UbiCare, an AAL based prototype system for elderly home care monitoring. The monitoring is based on the recording of environmental parameters like temperature and light intensity as well as micro-level incidents which allows one to infer daily activities like moving, sitting, sleeping, usage of electrical appliances and plumbing components. The prototype is built upon inexpensive, off-the-shelf hardware (e.g., various sensors, Arduino microcontrollers, ZigBee-compatible wireless communication modules) and license-free software, thereby ensuring low system deployment costs. The network comprises nodes placed in a house's main rooms or mounted on furniture, one wearable node, one actuator node and a centralized processing element (coordinator). Upon detecting significant deviations from the ordinary activity patterns of individuals and/or sudden falls, the system issues automated alarms which may be forwarded to authorized caregivers via a variety of communication channels. Furthermore, measured environmental parameters and activity incidents may be monitored through standard web interfaces.

Hands-On Experiences in Deploying Cost-Effective Ambient-Assisted Living Systems

Directory of Open Access Journals (Sweden)

Athanasios Dasios

2015-06-01

Full Text Available Older adults’ preferences to remain independent in their own homes along with the high costs of nursing home care have motivated the development of Ambient Assisted Living (AAL technologies which aim at improving the safety, health conditions and wellness of the elderly. This paper reports hands-on experiences in designing, implementing and operating UbiCare, an AAL based prototype system for elderly home care monitoring. The monitoring is based on the recording of environmental parameters like temperature and light intensity as well as micro-level incidents which allows one to infer daily activities like moving, sitting, sleeping, usage of electrical appliances and plumbing components. The prototype is built upon inexpensive, off-the-shelf hardware (e.g., various sensors, Arduino microcontrollers, ZigBee-compatible wireless communication modules and license-free software, thereby ensuring low system deployment costs. The network comprises nodes placed in a house’s main rooms or mounted on furniture, one wearable node, one actuator node and a centralized processing element (coordinator. Upon detecting significant deviations from the ordinary activity patterns of individuals and/or sudden falls, the system issues automated alarms which may be forwarded to authorized caregivers via a variety of communication channels. Furthermore, measured environmental parameters and activity incidents may be monitored through standard web interfaces.

Value based care and bundled payments: Anesthesia care costs for outpatient oncology surgery using time-driven activity-based costing.

Science.gov (United States)

French, Katy E; Guzman, Alexis B; Rubio, Augustin C; Frenzel, John C; Feeley, Thomas W

2016-09-01

With the movement towards bundled payments, stakeholders should know the true cost of the care they deliver. Time-driven activity-based costing (TDABC) can be used to estimate costs for each episode of care. In this analysis, TDABC is used to both estimate the costs of anesthesia care and identify the primary drivers of those costs of 11 common oncologic outpatient surgical procedures. Personnel cost were calculated by determining the hourly cost of each provider and the associated process time of the 11 surgical procedures. Using the anesthesia record, drugs, supplies and equipment costs were identified and calculated. The current staffing model was used to determine baseline personnel costs for each procedure. Using the costs identified through TDABC analysis, the effect of different staffing ratios on anesthesia costs could be predicted. Costs for each of the procedures were determined. Process time and costs are linearly related. Personnel represented 79% of overall cost while drugs, supplies and equipment represented the remaining 21%. Changing staffing ratios shows potential savings between 13% and 28% across the 11 procedures. TDABC can be used to estimate the costs of anesthesia care. This costing information is critical to assessing the anesthesiology component in a bundled payment. It can also be used to identify areas of cost savings and model costs of anesthesia care. CRNA to anesthesiologist staffing ratios profoundly influence the cost of care. This methodology could be applied to other medical specialties to help determine costs in the setting of bundled payments. Copyright © 2015 Elsevier Inc. All rights reserved.

Cost-benefit analysis of multi-regional nuclear energy systems deployment

International Nuclear Information System (INIS)

Van Den Durpel, L.G.G.; Wade, D.C.; Yacout, A.M.

2007-01-01

The paper describes the preliminary results of a cost/benefit-analysis of multi-regional nuclear energy system approaches with a focus on how multi-regional approaches may benefit a growing nuclear energy system in various world regions also being able to limit, or even reduce, the costs associated with the nuclear fuel cycle and facilitating the introduction of nuclear energy in various regions in the world. The paper highlights the trade-off one might envisage in deploying such multi-regional approaches but also the pay backs possible and concludes on the economical benefits one may associate to regional fuel cycle centres serving a world-fleet of STAR (small fast reactors of long refueling interval) where these STARs may be competitive compared to the LWRs (Light Water Reactors) as a base-case nuclear reactor option. (authors)

[Cost of hospitalization by the Activity Based Costing method in the neonatal department of Principal Hospital of Dakar].

Science.gov (United States)

Tchamdja, T; Balaka, A; Tchandana, M; Agbétra, A

2015-01-01

To determine the cost of hospitalization per day in the neonatal department of Principal Hospital of Dakar. This prospective study took place during the month of July 2011 in the newborn unit. The activity-based costing method was used to analyze costs. During the study period, 52 newborns were hospitalized for a total of 590 days. The cost of the human resources during that month was 9,907,832 FCFA (US $ 19,815.66), the cost of depreciation of fixed assets was estimated at 571,952 FCFA (US $ 1143.90), and supplies at 112,084 FCFA (US $ 224.17). External services cost 386,753 FCFA (US $ 773.51) and support services 6,917,380.65 FCFA (US $ 13,834.7613). The monthly expenses incurred for the hospitalization of newborns totaled 17,896,002 FCFA (US $ 35,792), for a cost per patient per day of 30,332.20 FCFA (US $ 60.66) and an average cost of hospitalization 334,153.88 FCFA (US $ 668,31). This study is the first of its kind in Senegal and neighboring countries. By applying the ABC approach, we can obtain a more detailed and precise estimate of the cost of activities and services. Process improvements and corrective actions should make it possible to identify cost drivers, such as time.

Cost of outpatient endoscopic sinus surgery from the perspective of the Canadian government: a time-driven activity-based costing approach.

Science.gov (United States)

Au, Jennifer; Rudmik, Luke

2013-09-01

The time-driven activity-based costing (TD-ABC) method is a novel approach to quantify the costs of a complex system. The aim of this study was to apply the TD-ABC technique to define the overall cost of a routine outpatient endoscopic sinus surgery (ESS) from the perspective of the Canadian government payer. Costing perspective was the Canadian government payer. All monetary values are in Canadian dollars as of December 2012. Costs were obtained by contacting staff unions, reviewing purchasing databases and provincial physician fee schedules. Practical capacity time values were collected from the College and Association of Registered Nurses of Alberta. Capacity cost rates ($/min) were calculated for all staff, capital equipment, and hospital space. The overall cost for routine outpatient ESS was $3510.31. The cost per ESS case for each clinical pathway encounter was as follows: preoperative holding ($49.19); intraoperative ($3296.60); sterilization ($90.20); postanesthesia care unit ($28.64); and postoperative day ward ($45.68). The 3 major cost drivers were physician fees, disposable equipment, and nursing costs. The intraoperative phase contributed to 94.5% of the overall cost. This study applied the TD-ABC method to evaluate the cost of outpatient ESS from the perspective of the Canadian government payer and defined the overall cost to be $3510.31 per case. © 2013 ARS-AAOA, LLC.

Process-based Cost Estimation for Ramjet/Scramjet Engines

Science.gov (United States)

Singh, Brijendra; Torres, Felix; Nesman, Miles; Reynolds, John

2003-01-01

Process-based cost estimation plays a key role in effecting cultural change that integrates distributed science, technology and engineering teams to rapidly create innovative and affordable products. Working together, NASA Glenn Research Center and Boeing Canoga Park have developed a methodology of process-based cost estimation bridging the methodologies of high-level parametric models and detailed bottoms-up estimation. The NASA GRC/Boeing CP process-based cost model provides a probabilistic structure of layered cost drivers. High-level inputs characterize mission requirements, system performance, and relevant economic factors. Design alternatives are extracted from a standard, product-specific work breakdown structure to pre-load lower-level cost driver inputs and generate the cost-risk analysis. As product design progresses and matures the lower level more detailed cost drivers can be re-accessed and the projected variation of input values narrowed, thereby generating a progressively more accurate estimate of cost-risk. Incorporated into the process-based cost model are techniques for decision analysis, specifically, the analytic hierarchy process (AHP) and functional utility analysis. Design alternatives may then be evaluated not just on cost-risk, but also user defined performance and schedule criteria. This implementation of full-trade study support contributes significantly to the realization of the integrated development environment. The process-based cost estimation model generates development and manufacturing cost estimates. The development team plans to expand the manufacturing process base from approximately 80 manufacturing processes to over 250 processes. Operation and support cost modeling is also envisioned. Process-based estimation considers the materials, resources, and processes in establishing cost-risk and rather depending on weight as an input, actually estimates weight along with cost and schedule.

ANALISIS PENERAPAN ACTIVITY BASED COSTING SEBAGAI ALTERNATIF DALAM MENENTUKAN TARIF JASA RAWAT INAP PADA RUMAH SAKIT UNIVERSITAS HASANUDDIN MAKASSAR

OpenAIRE

SUPARJO, TRI SUCIANI

2016-01-01

2016 Tujuan penelitian ini yaitu untuk mengetahui tariff rawat inap Rumah Sakit dengan menggunakan metode activity based costing serta membedakannya dengan tariff system biaya tradisional dengan cost driver yang berbeda. Metode yang digunakan dalam penelitian yaitu pendekatan kuantitatif deskriprif yaitu melakukan perbandingan antara penggunaan system biaya tradisional dan activity based costing untuk menentukan tariff rawat inap. Dari hasil penelitian menunjukkan bahwa p...

Time-driven activity based costing: a comparative study with the activity based costing

Directory of Open Access Journals (Sweden)

Marina Battistella Luna

2017-06-01

Full Text Available The activity-based costing (ABC emerged in the 1980s to meet the new necessities of cost information facing companies, the result of continuous changes in the business environment. In the 2000s, a new costing method, known as time-driven activity-based costing (TDABC was introduced in order to simplify the ABC. This paper compares these methods in order to provide information to assist managers to decide which of these methods better suits the reality of their companies. Therefore, they were analyzed based on information obtained through a systematic search in the Scopus and Web of Knowledge databases, as well as papers from the annals of the Congresso Brasileiro de Custos, Congresso de Controladoria e Contabilidade da USP and Encontro Nacional de Engenharia de Produção (considering scientific papers published between 2004 and 2016. From this analysis, in most cases it was concluded that TDABC is a simpler and more practical option than ABC. However, it was also apparent that managers, before choosing a particular method, must verify whether the conditions that enable its applicability exist.

Penerapan Activity Based Costing System Dalam Perhitungan Profitabilitas Produk Pada Ud. Niaga Bakti

OpenAIRE

Aulia, Fena Ulfa; Anam, Khairul

2015-01-01

The Charge imposition of factory overhead based on traditional systems often cause distorted costs. One of efforts to overcome these distortions fees is with charging the costs factory overhead by the activity based costing. The use of activity based costing can also help companies that produce many products in determining the level of profitability. Profitability indicates whether an enterprise has good prospects in the future for the company's survival. This research is a quantitative de...

Implementation of a Cost-Accounting System for Visibility of Weapon Systems Life-Cycle Costs

National Research Council Canada - National Science Library

Ugone, Mary

2001-01-01

... costs through activity-based costing and management. The system must deliver timely, integrated data for management purposes to permit understanding of total weapon costs, provide a basis for estimating costs of future systems, and feed other tools for life-cycle cost management.

The utilization of activity-based cost accounting in hospitals.

Science.gov (United States)

Emmett, Dennis; Forget, Robert

2005-01-01

Healthcare costs are being examined on all fronts. Healthcare accounts for 11% of the gross national product and will continue to rise as the "babyboomers" reach retirement age. While ascertaining costs is important, most research shows that costing methods have not been implemented in hospitals. This study is concerned with the use of costing methods; particularly activity-based cost accounting. A mail survey of CFOs was undertaken to determine the type of cost accounting method they use. In addition, they were asked whether they were aware of activity-based cost accounting and whether they had implemented it or were planning to implement it. Only 71.8% were aware of it and only 4.7% had implemented it. In addition, only 52% of all hospitals report using any cost accounting systems. Education needs to ensure that all healthcare executives are cognizant of activity-based accounting and its importance in determining costs. Only by determining costs can hospitals strive to contain them.

COST MEASUREMENT AND COST MANAGEMENT IN TARGET COSTING

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Moisello Anna Maria

2012-07-01

Full Text Available Firms are coping with a competitive scenario characterized by quick changes produced by internationalization, concentration, restructuring, technological innovation processes and financial market crisis. On the one hand market enlargement have increased the number and the segmentation of customers and have raised the number of competitors, on the other hand technological innovation has reduced product life cycle. So firms have to adjust their management models to this scenario, pursuing customer satisfaction and respecting cost constraints. In a context where price is a variable fixed by the market, firms have to switch from the cost measurement logic to the cost management one, adopting target costing methodology. The target costing process is a price driven, customer oriented profit planning and cost management system. It works, in a cross functional way, from the design stage throughout all the product life cycle and it involves the entire value chain. The process implementation needs a costing methodology consistent with the cost management logic. The aim of the paper is to focus on Activity Based Costing (ABC application to target costing process. So: -it analyzes target costing logic and phases, basing on a literary review, in order to highlight the costing needs related to this process; -it shows, through a numerical example, how to structure a flexible ABC model – characterized by the separation between variable, fixed in the short and fixed costs - that effectively supports target costing process in the cost measurement phase (drifting cost determination and in the target cost alignment; -it points out the effectiveness of the Activity Based Costing as a model of cost measurement applicable to the supplier choice and as a support for supply cost management which have an important role in target costing process. The activity based information allows a firm to optimize the supplier choice by following the method of minimizing the

PENERAPAN ACTIVITY BASED COSTING SYSTEM DALAM PERHITUNGAN PROFITABILITAS PRODUK PADA UD. NIAGA BAKTI

OpenAIRE

Fena Ulfa Aulia; Khairul Anam

2015-01-01

The Charge imposition of factory overhead based on traditional systems often cause distorted costs. One of efforts to overcome these distortions fees is with charging the costs  factory overhead  by the activity based costing. The use of activity based costing can also help companies that produce many products  in determining the level of profitability. Profitability indicates whether an enterprise has good prospects in the future for the company's survival. This research is a quantitative de...

Comparison Between Individually and Group-Based Insulin Pump Initiation by Time-Driven Activity-Based Costing.

Science.gov (United States)

Ridderstråle, Martin

2017-07-01

Depending on available resources, competencies, and pedagogic preference, initiation of insulin pump therapy can be performed on either an individual or a group basis. Here we compared the two models with respect to resources used. Time-driven activity-based costing (TDABC) was used to compare initiating insulin pump treatment in groups (GT) to individual treatment (IT). Activities and cost drivers were identified, timed, or estimated at location. Medical quality and patient satisfaction were assumed to be noninferior and were not measured. GT was about 30% less time-consuming and 17% less cost driving per patient and activity compared to IT. As a batch driver (16 patients in one group) GT produced an upward jigsaw-shaped accumulative cost curve compared to the incremental increase incurred by IT. Taking the alternate cost for those not attending into account, and realizing the cost of opportunity gained, suggested that GT was cost neutral already when 5 of 16 patients attended, and that a second group could be initiated at no additional cost as the attendance rate reached 15:1. We found TDABC to be effective in comparing treatment alternatives, improving cost control and decision making. Everything else being equal, if the setup is available, our data suggest that initiating insulin pump treatment in groups is far more cost effective than on an individual basis and that TDABC may be used to find the balance point.

Empirical study of ERP systems implementation costs in Swiss SMES

NARCIS (Netherlands)

Equey, C.; Kusters, R.J.; Varone, S.; Montandon, N.; Cordeiro, J.; Felipe, J.

2008-01-01

Based on sparse literature investigating the cost of ERP systems implementation, our research uses data from a survey of Swiss SMEs having implemented ERP in order to test cost drivers. The main innovation is the proposition of a new classification of cost drivers that depend on the enterprise

[Analysis of cost and efficiency of a medical nursing unit using time-driven activity-based costing].

Science.gov (United States)

Lim, Ji Young; Kim, Mi Ja; Park, Chang Gi

2011-08-01

Time-driven activity-based costing was applied to analyze the nursing activity cost and efficiency of a medical unit. Data were collected at a medical unit of a general hospital. Nursing activities were measured using a nursing activities inventory and classified as 6 domains using Easley-Storfjell Instrument. Descriptive statistics were used to identify general characteristics of the unit, nursing activities and activity time, and stochastic frontier model was adopted to estimate true activity time. The average efficiency of the medical unit using theoretical resource capacity was 77%, however the efficiency using practical resource capacity was 96%. According to these results, the portion of non-added value time was estimated 23% and 4% each. The sums of total nursing activity costs were estimated 109,860,977 won in traditional activity-based costing and 84,427,126 won in time-driven activity-based costing. The difference in the two cost calculating methods was 25,433,851 won. These results indicate that the time-driven activity-based costing provides useful and more realistic information about the efficiency of unit operation compared to traditional activity-based costing. So time-driven activity-based costing is recommended as a performance evaluation framework for nursing departments based on cost management.

Time-driven activity-based costing to identify opportunities for cost reduction in pediatric appendectomy.

Science.gov (United States)

Yu, Yangyang R; Abbas, Paulette I; Smith, Carolyn M; Carberry, Kathleen E; Ren, Hui; Patel, Binita; Nuchtern, Jed G; Lopez, Monica E

2016-12-01

As reimbursement programs shift to value-based payment models emphasizing quality and efficient healthcare delivery, there exists a need to better understand process management to unearth true costs of patient care. We sought to identify cost-reduction opportunities in simple appendicitis management by applying a time-driven activity-based costing (TDABC) methodology to this high-volume surgical condition. Process maps were created using medical record time stamps. Labor capacity cost rates were calculated using national median physician salaries, weighted nurse-patient ratios, and hospital cost data. Consumable costs for supplies, pharmacy, laboratory, and food were derived from the hospital general ledger. Time-driven activity-based costing resulted in precise per-minute calculation of personnel costs. Highest costs were in the operating room ($747.07), hospital floor ($388.20), and emergency department ($296.21). Major contributors to length of stay were emergency department evaluation (270min), operating room availability (395min), and post-operative monitoring (1128min). The TDABC model led to $1712.16 in personnel costs and $1041.23 in consumable costs for a total appendicitis cost of $2753.39. Inefficiencies in healthcare delivery can be identified through TDABC. Triage-based standing delegation orders, advanced practice providers, and same day discharge protocols are proposed cost-reducing interventions to optimize value-based care for simple appendicitis. II. Copyright © 2016 Elsevier Inc. All rights reserved.

Ground-Based Telescope Parametric Cost Model

Science.gov (United States)

Stahl, H. Philip; Rowell, Ginger Holmes

2004-01-01

A parametric cost model for ground-based telescopes is developed using multi-variable statistical analysis, The model includes both engineering and performance parameters. While diameter continues to be the dominant cost driver, other significant factors include primary mirror radius of curvature and diffraction limited wavelength. The model includes an explicit factor for primary mirror segmentation and/or duplication (i.e.. multi-telescope phased-array systems). Additionally, single variable models based on aperture diameter are derived. This analysis indicates that recent mirror technology advances have indeed reduced the historical telescope cost curve.

Cost of intensive routine control and incremental cost of insecticide-treated curtain deployment in a setting with low Aedes aegypti infestation

Directory of Open Access Journals (Sweden)

Alberto Baly

Full Text Available Abstract: INTRODUCTION Information regarding the cost of implementing insecticide-treated curtains (ITCs is scarce. Therefore, we evaluated the ITC implementation cost, in addition to the costs of intensive conventional routine activities of the Aedes control program in the city of Guantanamo, Cuba. METHODS A cost-analysis study was conducted from the perspective of the Aedes control program, nested in an ITC effectiveness trial, during 2009-2010. Data for this study were obtained from bookkeeping records and activity registers of the Provincial Aedes Control Programme Unit and the account records of the ITC trial. RESULTS The annual cost of the routine Aedes control program activities was US$16.80 per household (p.h. Among 3,015 households, 6,714 ITCs were distributed. The total average cost per ITC distributed was US$3.42, and 74.3% of this cost was attributed to the cost of purchasing the ITCs. The annualized costs p.h. of ITC implementation was US$3.80. The additional annualized cost for deploying ITCs represented 19% and 48.4% of the total cost of the routine Aedes control and adult-stage Aedes control programs, respectively. The trial did not lead to further reductions in the already relatively low Aedes infestation levels. CONCLUSIONS At current curtain prices, ITC deployment can hardly be considered an efficient option in Guantanamo and other comparable environments.

Cost of intensive routine control and incremental cost of insecticide-treated curtain deployment in a setting with low Aedes aegypti infestation.

Science.gov (United States)

Baly, Alberto; Toledo, Maria Eugenia; Lambert, Isora; Benítez, Elizabeth; Rodriguez, Karina; Rodriguez, Esther; Vanlerberghe, Veerle; Stuyft, Patrick Van der

2016-01-01

Information regarding the cost of implementing insecticide-treated curtains (ITCs) is scarce. Therefore, we evaluated the ITC implementation cost, in addition to the costs of intensive conventional routine activities of the Aedes control program in the city of Guantanamo, Cuba. A cost-analysis study was conducted from the perspective of the Aedes control program, nested in an ITC effectiveness trial, during 2009-2010. Data for this study were obtained from bookkeeping records and activity registers of the Provincial Aedes Control Programme Unit and the account records of the ITC trial. The annual cost of the routine Aedes control program activities was US$16.80 per household (p.h). Among 3,015 households, 6,714 ITCs were distributed. The total average cost per ITC distributed was US$3.42, and 74.3% of this cost was attributed to the cost of purchasing the ITCs. The annualized costs p.h. of ITC implementation was US$3.80. The additional annualized cost for deploying ITCs represented 19% and 48.4% of the total cost of the routine Aedes control and adult-stage Aedes control programs, respectively. The trial did not lead to further reductions in the already relatively low Aedes infestation levels. At current curtain prices, ITC deployment can hardly be considered an efficient option in Guantanamo and other comparable environments.

Strategies for Implementing Activity-Based Costing in the UK Manufacturing Industry

OpenAIRE

Cheung, Wai Ming; Tan, Kian; Tan, Swee; Sutton, Caroline

2013-01-01

The purpose of this paper is to report the findings with a case study on why activity based costing lacks impact in the UK manufacturing industry. Activity based costing was performed on selected MT range subsystems of an electrical power generator to compare with the current UNN UK’s conven-tional costing system. The results have found that the current costing system works well for the MT products and thus change of costing system is not necessary for these products. The activity based costi...

Determination of chest x-ray cost using activity based costing approach at Penang General Hospital, Malaysia.

Science.gov (United States)

Atif, Muhammad; Sulaiman, Syed Azhar Syed; Shafie, Asrul Akmal; Saleem, Fahad; Ahmad, Nafees

2012-01-01

Activity based costing (ABC) is an approach to get insight of true costs and to solve accounting problems. It provides more accurate information on product cost than conventional accounting system. The purpose of this study was to identify detailed resource consumption for chest x-ray procedure. Human resource cost was calculated by multiplying the mean time spent by employees doing specific activity to their per-minute salaries. The costs of consumables and clinical equipments were obtained from the procurement section of the Radiology Department. The cost of the building was calculated by multiplying the area of space used by the chest X-ray facility with the unit cost of public building department. Moreover, straight-line deprecation with a discount rate of 3% was assumed for calculation of equivalent annual costs for building and machines. Cost of electricity was calculated by multiplying number of kilo watts used by electrical appliance in the year 2010 with electricity tariff for Malaysian commercial consumers (MYR 0.31 per kWh). Five activities were identified which were required to develop one chest X-ray film. Human resource, capital, consumable and electricity cost was MYR 1.48, MYR 1.98, MYR 2.15 and MYR 0.04, respectively. Total cost of single chest X-ray was MYR 5.65 (USD 1.75). By applying ABC approach, we can have more detailed and precise estimate of cost for specific activity or service. Choice of repeating a chest X-ray can be based on our findings, when cost is a limiting factor.

Activity-based costing methodology as tool for costing in hematopathology laboratory.

Science.gov (United States)

Gujral, Sumeet; Dongre, Kanchan; Bhindare, Sonal; Subramanian, P G; Narayan, Hkv; Mahajan, Asim; Batura, Rekha; Hingnekar, Chitra; Chabbria, Meenu; Nair, C N

2010-01-01

Cost analysis in laboratories represents a necessary phase in their scientific progression. To calculate indirect cost and thus total cost per sample of various tests at Hematopathology laboratory (HPL). Activity-based costing (ABC) method is used to calculate per cost test of the hematopathology laboratory. Information is collected from registers, purchase orders, annual maintenance contracts (AMCs), payrolls, account books, hospital bills and registers along with informal interviews with hospital staff. Cost per test decreases as total number of samples increases. Maximum annual expense at the HPL is on reagents and consumables followed by manpower. Cost per test is higher for specialized tests which interpret morphological or flow data and are done by a pathologist. Despite several limitations and assumptions, this was an attempt to understand how the resources are consumed in a large size government-run laboratory. The rate structure needs to be revised for most of the tests, mainly for complete blood counts (CBC), bone marrow examination, coagulation tests and Immunophenotyping. This costing exercise is laboratory specific and each laboratory needs to do its own costing. Such an exercise may help a laboratory redesign its costing structure or at least understand the economics involved in the laboratory management.

Cost system design and cost management in the Spanish public sector

OpenAIRE

Boned, Josep Lluís; Bagur, Llorenç; Tayles, Mike

2006-01-01

Cost systems have been shown to have developed considerably in recent years and activity-based costing (ABC) has been shown to be a contribution to cost management, particularly in service businesses. The public sector is composed to a very great extent of service functions, yet considerably less has been reported of the use of ABC to support cost management in this sector. In Spain, cost systems are essential for city councils as they are obliged to calculate the cost of the services subject...

Activity- Based Costing: An Application In The Olive Sector

OpenAIRE

Bekçioğlu, Selim; Gürel, Eymen; Kızılyalçın, D. Ali

2014-01-01

The purpose of the study named as “The Activity Based Costing: An Application in the Olive Sector” is the implementation of activity based costing in olive sector and the statement of the differences as regards to the traditional costing. The accepted basic hypothesis in the thesis is that the activity-based costing provides more accurate cost information than the traditional costing process. In this study initially comprehensive information about activity based costing is given and after th...

Japanese Cost Accounting Systems - analysis of the cost accounting systems of the Japanese cost accounting standard

OpenAIRE

Peter, Winter

2005-01-01

This paper aims at providing an insight into Japanese cost accounting. Firstly, the development of cost accounting in Japan is delineated. Subsequently, the cost accounting systems codified in the Japanese cost accounting standard are analysed based on the classification according to Hoitsch/Schmitz. Lastly, a critical appraisal of the cost accounting systems of the Japanese cost accounting standard as well as a comparison to German and American cost accounting systems are conducted.

Activity-based costing methodology as tool for costing in hematopathology laboratory

Directory of Open Access Journals (Sweden)

Gujral Sumeet

2010-01-01

Full Text Available Background: Cost analysis in laboratories represents a necessary phase in their scientific progression. Aim: To calculate indirect cost and thus total cost per sample of various tests at Hematopathology laboratory (HPL Settings and Design: Activity-based costing (ABC method is used to calculate per cost test of the hematopathology laboratory. Material and Methods: Information is collected from registers, purchase orders, annual maintenance contracts (AMCs, payrolls, account books, hospital bills and registers along with informal interviews with hospital staff. Results: Cost per test decreases as total number of samples increases. Maximum annual expense at the HPL is on reagents and consumables followed by manpower. Cost per test is higher for specialized tests which interpret morphological or flow data and are done by a pathologist. Conclusions: Despite several limitations and assumptions, this was an attempt to understand how the resources are consumed in a large size government-run laboratory. The rate structure needs to be revised for most of the tests, mainly for complete blood counts (CBC, bone marrow examination, coagulation tests and Immunophenotyping. This costing exercise is laboratory specific and each laboratory needs to do its own costing. Such an exercise may help a laboratory redesign its costing structure or at least understand the economics involved in the laboratory management.

Distribution system costs associated with the deployment of photovoltaic systems

Energy Technology Data Exchange (ETDEWEB)

Horowitz, Kelsey A. W.; Palmintier, Bryan; Mather, Barry; Denholm, Paul

2018-07-01

The broadening of our energy system to include increasing amounts of wind and solar has led to significant debate about the total costs and benefits associated with different types of generators - with potentially far-reaching policy implications. This has included debate about the cost associated with integrating these generators onto the electric grid. For photovoltaics (PV), this encompasses costs incurred on both the bulk power and distribution systems, as well as the value provided to them. These costs and benefits, in particular those associated with integrating PV onto the distribution system, are not well understood. We seek to advance the state of understanding of 'grid integration costs' for the distribution system by reviewing prior literature and outlining a transparent, bottom-up approach that can be used to calculate these costs. We provide a clear delineation of costs to integrate PV in to the distribution system within the larger context of total costs and benefits associated with PV generators. We emphasize that these costs are situationally dependent, and that a single 'cost of integration' cannot be obtained. We additionally emphasize that benefits must be considered when evaluating the competitiveness of the technology in a given situation.

Heterogeneous Deployment Analysis for Cost-Effective Mobile Network Evolution

DEFF Research Database (Denmark)

Coletti, Claudio

2013-01-01

network coverage and boosting network capacity in traffic hot-spot areas. The thesis deals with the deployment of both outdoor small cells and indoor femto cells. Amongst the outdoor solution, particular emphasis is put on relay base stations as backhaul costs can be reduced by utilizing LTE spectrum...... statistical models of deployment areas, the performance analysis is carried out in the form of operator case studies for large-scale deployment scenarios, including realistic macro network layouts and inhomogeneous spatial traffic distributions. Deployment of small cells is performed by means of proposed...... heuristic deployment algorithms, which combine network coverage and spatial user density information. As a secondary aspect, deployment solutions achieving the same coverage performance are compared in terms of Total Cost of Ownership (TCO), in order to investigate the viability of different deployment...

Time-driven activity-based costing in an outpatient clinic environment: development, relevance and managerial impact.

Science.gov (United States)

Demeere, Nathalie; Stouthuysen, Kristof; Roodhooft, Filip

2009-10-01

Healthcare managers are continuously urged to provide better patient services at a lower cost. To cope with these cost pressures, healthcare management needs to improve its understanding of the relevant cost drivers. Through a case study, we show how to perform a time-driven activity-based costing of five outpatient clinic's departments and provide evidence of the benefits of such an analysis.

Activity-based costing as an information basis for an efficient strategic management process

Directory of Open Access Journals (Sweden)

Kaličanin Đorđe

2013-01-01

Full Text Available Activity-based costing (ABC provides an information basis for monitoring and controlling one of two possible sources of competitive advantage, low-cost production and lowcost distribution. On the basis of cost information about particular processes and activities, management may determine their contribution to the success of a company, and may decide to transfer certain processes and activities to another company. Accuracy of cost information is conditioned by finding an adequate relation between overhead costs and cost objects, identifying and tracing cost drivers and output measures of activities, and by monitoring cost behaviour of different levels of a product. Basic characteristics of the ABC approach, such as more accurate cost price accounting of objects, focusing on process and activity output (rather than only on resource consumption and on understanding and interpretation of cost structure (rather than on cost measurement, enable managers to estimate and control future costs more reliably. Thus the ABC methodology provides a foundation for cost tracing, analysis, and management, which entails making quality and accurate operative and strategic decisions as a basis for the longterm orientation of a company. ABC is also complementary to the widely accepted technique of strategic planning and strategy implementation known as Balanced Scorecard (BSC.

Activity-based cost analysis in catheter-based angiography and interventional radiology

International Nuclear Information System (INIS)

Rautio, R.; Keski-Nisula, L.; Paakkala, T.

2003-01-01

The aim of this study was to analyse the costs of the interventional radiology unit and to identify the cost factors in the different activities of catheter-based angiographies and interventional radiology. In 1999 the number of procedures in the interventional radiological unit at Tampere University Hospital was 2968; 1601 of these were diagnostic angiographies, 526 endovascular and 841 nonvascular interventions. The costs were analysed by using Activity Based Cost (ABC) analysis. The budget of the interventional unit was approximately 1.8 million Euro. Material costs accounted for 67%, personnel costs for 17%, equipment costs for 14% and premises costs for 2% of this. The most expensive products were endografting of aortic aneurysms, with a mean price of 5291 Euro and embolizations of cerebral aneurysms (4472 Euro). Endografts formed 87.3% of the total costs in endografting and Guglielmi detachable coils accounted for 63.3% of the total costs in embolizations. The material costs formed the majority of the costs, especially in the newest and most complicated endovascular treatments. Despite the high cost of angiography equipment, its share of the costs is minor. In our experience ABC system is suitable for analysing costs in interventional radiology. (orig.)

Gestão de custos florestais: um estudo de caso utilizando o Activity-Based Costing Forest management costs: a case study utilizing Activity-Based Costing

Directory of Open Access Journals (Sweden)

Alcir Ribeiro Carneiro de Almeida

1999-08-01

Full Text Available No atual cenário de industrialização globalizada, tornou-se fundamental a eficácia no gerenciamento dos custos considerados inevitavelmente necessários. Programas convencionais de redução dos custos não consideram o grau de agregação de valor das atividades de rotina pela distorção dos sistemas contábeis atuais. No presente estudo, apresentam-se os principais motivos da falta de relevância das informações de custo, comenta-se sobre o problema da redução de desperdícios florestais e suas conseqüências. A partir de um estudo de caso em uma empresa do setor florestal, demonstra-se uma simulação do Activity Based Costing (ABC em uma determinada área da empresa, concluindo-se que a adoção de sistemas de custeio mais aprimorados, tal como o ABC, devem fazer parte de programas que busquem o aumento da competitividade do setor florestal.In the current view of globalized industrialization, it has become fundamental to manage essential costs effectively. Conventional programs for reducing costs, do no consider the value agregation grade of routine activities because of the distortion of current accounting systems. This study, presents the main reasons for the lack of relevance of the cost information, commenting on the problem of the reduction of forest waste and its consequences. Using a case study in a company from the forest sector, a simulation of Activity Based Costing (ABC is demonstrated in a determined area of the company it is concluded that the adoption of a more refined cost system, such as the ABC, should be included in programs, that seek to increase the competitiveness of the forest sector.

Activity based costing (ABC Method

Directory of Open Access Journals (Sweden)

Prof. Ph.D. Saveta Tudorache

2008-05-01

Full Text Available In the present paper the need and advantages are presented of using the Activity BasedCosting method, need arising from the need of solving the information pertinence issue. This issue has occurreddue to the limitation of classic methods in this field, limitation also reflected by the disadvantages ofsuch classic methods in establishing complete costs.

Requirements for low-cost electricity and hydrogen fuel production from multiunit inertial fusion energy plants with a shared driver and target factory

International Nuclear Information System (INIS)

Logan, G.B.; Moir, R.W.; Hoffmman, M.A.

1995-01-01

The economy of scale for multiunit inertial fusion energy (IFE) power plants is explored based on the molten salt HYLIFE-II fusion chamber concept, for the purpose of producing lower cost electricity and hydrogen fuel. The cost of electricity (CoE) is minimized with a new IFE systems code IFEFUEL5 for a matrix of plant cases with one to eight fusion chambers of 250 to 2000-MW (electric) net output each, sharing a common heavy-ion driver and target factory. Improvements to previous HYLIFE-II models include a recirculating induction linac driver optimized as a function of driver energy and rep-rate (average driver power), inclusion of beam switchyard costs, a fusion chamber cost scaling dependence on both thermal power and fusion yield, and a more accurate bypass pump power scaling with chamber rep-rate. A CoE less than 3 cents/kW(electric)-h is found for plant outputs greater than 2 GW(electric), allowing hydrogen fuel production by wafer electrolysis to provide lower fuel cost per mile for higher efficiency hydrogen engines compared with gasoline engines. These multiunit, multi-GW(electric) IFE plants allow staged utility plant deployment, lower optimum chamber rep-rates, less sensitivity to driver and target fabrication costs, and a CoE possibly lower than future fission, fossil, and solar competitors. 37 refs., 12 figs., 4 tabs

Pharmaceutical services cost analysis using time-driven activity-based costing: A contribution to improve community pharmacies' management.

Science.gov (United States)

Gregório, João; Russo, Giuliano; Lapão, Luís Velez

2016-01-01

The current financial crisis is pressing health systems to reduce costs while looking to improve service standards. In this context, the necessity to optimize health care systems management has become an imperative. However, little research has been conducted on health care and pharmaceutical services cost management. Pharmaceutical services optimization requires a comprehensive understanding of resources usage and its costs. This study explores the development of a time-driven activity-based costing (TDABC) model, with the objective of calculating the cost of pharmaceutical services to help inform policy-making. Pharmaceutical services supply patterns were studied in three pharmacies during a weekday through an observational study. Details of each activity's execution were recorded, including time spent per activity performed by pharmacists. Data on pharmacy costs was obtained through pharmacies' accounting records. The calculated cost of a dispensing service in these pharmacies ranged from €3.16 to €4.29. The cost of a counseling service when no medicine was supplied ranged from €1.24 to €1.46. The cost of health screening services ranged from €2.86 to €4.55. The presented TDABC model gives us new insights on management and costs of community pharmacies. This study shows the importance of cost analysis for health care services, specifically on pharmaceutical services, in order to better inform pharmacies' management and the elaboration of pharmaceutical policies. Copyright © 2016 Elsevier Inc. All rights reserved.

IVF cycle cost estimation using Activity Based Costing and Monte Carlo simulation.

Science.gov (United States)

Cassettari, Lucia; Mosca, Marco; Mosca, Roberto; Rolando, Fabio; Costa, Mauro; Pisaturo, Valerio

2016-03-01

The Authors present a new methodological approach in stochastic regime to determine the actual costs of an healthcare process. The paper specifically shows the application of the methodology for the determination of the cost of an Assisted reproductive technology (ART) treatment in Italy. The reason of this research comes from the fact that deterministic regime is inadequate to implement an accurate estimate of the cost of this particular treatment. In fact the durations of the different activities involved are unfixed and described by means of frequency distributions. Hence the need to determine in addition to the mean value of the cost, the interval within which it is intended to vary with a known confidence level. Consequently the cost obtained for each type of cycle investigated (in vitro fertilization and embryo transfer with or without intracytoplasmic sperm injection), shows tolerance intervals around the mean value sufficiently restricted as to make the data obtained statistically robust and therefore usable also as reference for any benchmark with other Countries. It should be noted that under a methodological point of view the approach was rigorous. In fact it was used both the technique of Activity Based Costing for determining the cost of individual activities of the process both the Monte Carlo simulation, with control of experimental error, for the construction of the tolerance intervals on the final result.

ANALISIS PENERAPAN METODE ACTIVITY BASED COSTING TERHADAP TARIF RAWAT INAP PADA RUMAH SAKIT UMUM KASIH BUNDA

Directory of Open Access Journals (Sweden)

Dwinta Mulyanti

2016-03-01

Full Text Available ABSTRACT - Use of the estimated cost of hospitalization rates were based on General Hospital competitor rates imposed by Mother Love General Hospital, causing the gap between the cost of the facilities provided, and therefore to reduce this gap required a method to calculate the rates can provide cost information accurately. Overcome this method of activity-based costing can be used because the charge in accordance with the selection of activities undertaken appropriate cost driver. The method used is descriptive quantitative method, with the presentation of the data in the form of the costs in the form of numbers processing using mathematical formulas. The results showed that rates calculated using activity based costing method is greater than the rate that had been used by Mother Love General Hospital of Rp 454,226, while the rates in effect at the General Hospital Mother Love Rp 125,000. This is because rates Kasih Bunda Hospital is not a standard cost estimate for the result obtained from another hospital rates, while the rates based  on  activity  based  costing  methods  derived  from calculations  based  on  the  activities performed in the inpatient activities. Keywords: activity based costing method, hospitalization rates

["Activity based costing" in radiology].

Science.gov (United States)

Klose, K J; Böttcher, J

2002-05-01

The introduction of diagnosis related groups for reimbursement of hospital services in Germany (g-drg) demands for a reconsideration of utilization of radiological products and costs related to them. Traditional cost accounting as approach to internal, department related budgets are compared with the accounting method of activity based costing (ABC). The steps, which are necessary to implement ABC in radiology are developed. The introduction of a process-oriented cost analysis is feasible for radiology departments. ABC plays a central role in the set-up of decentralized controlling functions within this institutions. The implementation seems to be a strategic challenge for department managers to get more appropriate data for adequate enterprise decisions. The necessary steps of process analysis can be used for other purposes (Certification, digital migration) as well.

Activity-based costing and its application in a Turkish university hospital.

Science.gov (United States)

Yereli, Ayşe Necef

2009-03-01

Resource management in hospitals is of increasing importance in today's global economy. Traditional accounting systems have become inadequate for managing hospital resources and accurately determining service costs. Conversely, the activity-based costing approach to hospital accounting is an effective cost management model that determines costs and evaluates financial performance across departments. Obtaining costs that are more accurate can enable hospitals to analyze and interpret costing decisions and make more accurate budgeting decisions. Traditional and activity-based costing approaches were compared using a cost analysis of gall bladder surgeries in the general surgery department of one university hospital in Manisa, Turkey. Copyright (c) AORN, Inc, 2009.

Design and Analysis of Cost-Efficient Sensor Deployment for Tracking Small UAS with Agent-Based Modeling.

Science.gov (United States)

Shin, Sangmi; Park, Seongha; Kim, Yongho; Matson, Eric T

2016-04-22

Recently, commercial unmanned aerial systems (UAS) have gained popularity. However, these UAS are potential threats to people in terms of safety in public places, such as public parks or stadiums. To reduce such threats, we consider a design, modeling, and evaluation of a cost-efficient sensor system that detects and tracks small UAS. In this research, we focus on discovering the best sensor deployments by simulating different types and numbers of sensors in a designated area, which provide reasonable detection rates at low costs. Also, the system should cover the crowded areas more thoroughly than vacant areas to reduce direct threats to people underneath. This research study utilized the Agent-Based Modeling (ABM) technique to model a system consisting of independent and heterogeneous agents that interact with each other. Our previous work presented the ability to apply ABM to analyze the sensor configurations with two types of radars in terms of cost-efficiency. The results from the ABM simulation provide a list of candidate configurations and deployments that can be referred to for applications in the real world environment.

Design and Analysis of Cost-Efficient Sensor Deployment for Tracking Small UAS with Agent-Based Modeling

Directory of Open Access Journals (Sweden)

Sangmi Shin

2016-04-01

Full Text Available Recently, commercial unmanned aerial systems (UAS have gained popularity. However, these UAS are potential threats to people in terms of safety in public places, such as public parks or stadiums. To reduce such threats, we consider a design, modeling, and evaluation of a cost-efficient sensor system that detects and tracks small UAS. In this research, we focus on discovering the best sensor deployments by simulating different types and numbers of sensors in a designated area, which provide reasonable detection rates at low costs. Also, the system should cover the crowded areas more thoroughly than vacant areas to reduce direct threats to people underneath. This research study utilized the Agent-Based Modeling (ABM technique to model a system consisting of independent and heterogeneous agents that interact with each other. Our previous work presented the ability to apply ABM to analyze the sensor configurations with two types of radars in terms of cost-efficiency. The results from the ABM simulation provide a list of candidate configurations and deployments that can be referred to for applications in the real world environment.

Time-driven activity-based costing to estimate cost of care at multidisciplinary aerodigestive centers.

Science.gov (United States)

Garcia, Jordan A; Mistry, Bipin; Hardy, Stephen; Fracchia, Mary Shannon; Hersh, Cheryl; Wentland, Carissa; Vadakekalam, Joseph; Kaplan, Robert; Hartnick, Christopher J

2017-09-01

Providing high-value healthcare to patients is increasingly becoming an objective for providers including those at multidisciplinary aerodigestive centers. Measuring value has two components: 1) identify relevant health outcomes and 2) determine relevant treatment costs. Via their inherent structure, multidisciplinary care units consolidate care for complex patients. However, their potential impact on decreasing healthcare costs is less clear. The goal of this study was to estimate the potential cost savings of treating patients with laryngeal clefts at multidisciplinary aerodigestive centers. Retrospective chart review. Time-driven activity-based costing was used to estimate the cost of care for patients with laryngeal cleft seen between 2008 and 2013 at the Massachusetts Eye and Ear Infirmary Pediatric Aerodigestive Center. Retrospective chart review was performed to identify clinic utilization by patients as well as patient diet outcomes after treatment. Patients were stratified into neurologically complex and neurologically noncomplex groups. The cost of care for patients requiring surgical intervention was five and three times as expensive of the cost of care for patients not requiring surgery for neurologically noncomplex and complex patients, respectively. Following treatment, 50% and 55% of complex and noncomplex patients returned to normal diet, whereas 83% and 87% of patients experienced improved diets, respectively. Additionally, multidisciplinary team-based care for children with laryngeal clefts potentially achieves 20% to 40% cost savings. These findings demonstrate how time-driven activity-based costing can be used to estimate and compare patient costs in multidisciplinary aerodigestive centers. 2c. Laryngoscope, 127:2152-2158, 2017. © 2017 The American Laryngological, Rhinological and Otological Society, Inc.

Activity-based costing for pathology examinations and comparison with the current pricing system in Turkey.

Science.gov (United States)

Ergün, Ferda A K; Ağirbaş, Ismail; Kuzu, Işınsu

2013-01-01

To demonstrate the real cost data of the pathology examinations by using the activity-based costing method and to contribute to the financial planning of the departments, health managers and also the social security institution. Forty-four examinations selected from the Healthcare Implementation Notification system list and performed at the Ankara University Faculty of Medicine Pathology Department during September 2010 were studied. The analysis and the real cost calculations were done according to the duration of the procedures. Calculated costs were compared with the Healthcare Implementation Notification system and Medicare price lists. The costs of the pathology tests listed within the same pricing levels in the Healthcare Implementation Notification system list showed great differences. The minimum and maximum costs in level 1, 2, 3, and 4 were 15,98-80,15 TL, 15,95-258,59 TL, 42,38- 236,87 TL, and 124,42-406,76 TL, respectively. Medicare price levels were more consistent with the real costs of the examinations compared to the Healthcare Implementation Notification system price list. The prices of the pathology examination listed at different levels in the Healthcare Implementation Notification system lists do not cover the real costs of the work done. The principal parameters of Activity-Based Costing system are more suitable for making the most realistic cost categorization. Although the prices could differ between countries, the Medicare system categories are more realistic than the Healthcare Implementation Notification system. The Healthcare Implementation Notification system list needs to be revised in order to reflect the real costs of the pathology examinations.

Recirculating induction accelerator as a low-cost driver for heavy ion fusion

International Nuclear Information System (INIS)

Barnard, J.J.; Newton, M.A.; Reginato, L.L.; Sharp, W.M.; Shay, H.D.; Yu, S.S.

1991-09-01

As a fusion driver, a heavy ion accelerator offers the advantages of efficient target coupling, high reliability, and long stand-off focusing. While the projected cost of conventional heavy ion fusion (HIF) drivers based on multiple beam induction linacs are quite competitive with other inertial driver options, a driver solution which reduces the cost by a factor of two or more will make the case for HIF truly compelling. The recirculating induction accelerator has the potential of large cost reductions. For this reason, an intensive study of the recirculator concept was performed by a team from LLNL and LBL over the past year. We have constructed a concrete point design example of a 4 MJ driver with a projected efficiency of 35% and projected cost of less than 500 million dollars. A detailed report of our findings during this year of intensive studies has been recently completed. 3 refs., 2 figs., 2 tabs

(Value Stream Costing As A New Costing System)

OpenAIRE

Karcıoğlu, Reşar; Nuray, Meral

2010-01-01

In recent years, the number of lean company which use lean manufacturing system is rising. This companies use the standard costing while appropriate for traditional bathch manufacturing. But standard costing system fails to support the goals of lean manufacturing system. A different method of costing based upon the characteristics of the value stream is needed to fulfill the needs of the lean company. This systemis Value Stream Costing. When a lean company moves to value stream management, th...

Clinical process analysis and activity-based costing at a heart center.

Science.gov (United States)

Ridderstolpe, Lisa; Johansson, Andreas; Skau, Tommy; Rutberg, Hans; Ahlfeldt, Hans

2002-08-01

Cost studies, productivity, efficiency, and quality of care measures, the links between resources and patient outcomes, are fundamental issues for hospital management today. This paper describes the implementation of a model for process analysis and activity-based costing (ABC)/management at a Heart Center in Sweden as a tool for administrative cost information, strategic decision-making, quality improvement, and cost reduction. A commercial software package (QPR) containing two interrelated parts, "ProcessGuide and CostControl," was used. All processes at the Heart Center were mapped and graphically outlined. Processes and activities such as health care procedures, research, and education were identified together with their causal relationship to costs and products/services. The construction of the ABC model in CostControl was time-consuming. However, after the ABC/management system was created, it opened the way for new possibilities including process and activity analysis, simulation, and price calculations. Cost analysis showed large variations in the cost obtained for individual patients undergoing coronary artery bypass grafting (CABG) surgery. We conclude that a process-based costing system is applicable and has the potential to be useful in hospital management.

Dissecting Costs of CT Study: Application of TDABC (Time-driven Activity-based Costing) in a Tertiary Academic Center.

Science.gov (United States)

Anzai, Yoshimi; Heilbrun, Marta E; Haas, Derek; Boi, Luca; Moshre, Kirk; Minoshima, Satoshi; Kaplan, Robert; Lee, Vivian S

2017-02-01

The lack of understanding of the real costs (not charge) of delivering healthcare services poses tremendous challenges in the containment of healthcare costs. In this study, we applied an established cost accounting method, the time-driven activity-based costing (TDABC), to assess the costs of performing an abdomen and pelvis computed tomography (AP CT) in an academic radiology department and identified opportunities for improved efficiency in the delivery of this service. The study was exempt from an institutional review board approval. TDABC utilizes process mapping tools from industrial engineering and activity-based costing. The process map outlines every step of discrete activity and duration of use of clinical resources, personnel, and equipment. By multiplying the cost per unit of capacity by the required task time for each step, and summing each component cost, the overall costs of AP CT is determined for patients in three settings, inpatient (IP), outpatient (OP), and emergency departments (ED). The component costs to deliver an AP CT study were as follows: radiologist interpretation: 40.1%; other personnel (scheduler, technologist, nurse, pharmacist, and transporter): 39.6%; materials: 13.9%; and space and equipment: 6.4%. The cost of performing CT was 13% higher for ED patients and 31% higher for inpatients (IP), as compared to that for OP. The difference in cost was mostly due to non-radiologist personnel costs. Approximately 80% of the direct costs of AP CT to the academic medical center are related to labor. Potential opportunities to reduce the costs include increasing the efficiency of utilization of CT, substituting lower cost resources when appropriate, and streamlining the ordering system to clarify medical necessity and clinical indications. Copyright © 2017 The Association of University Radiologists. Published by Elsevier Inc. All rights reserved.

Activity-based Management of Logistic Costs in a Manufacturing Company: A Case of Increased Visibility of Logistics Costs in a Slovenian Paper Manufacturing Company

OpenAIRE

Julijana Krajnc; Klavdij Logožar; Bojana Korošec

2012-01-01

Both the transparent reporting of logistics costs and the related accounting of their cost drivers present a significant factor for the successful management of material flows and the related logistics activities in production companies. These costs, which are mainly reported as part of overhead (indirect) costs in such companies, usually remain hidden or are not explicitly visible when the traditional method of accounting is applied. The aim of this research is to create a model of activity-...

Economics of human performance and systems total ownership cost.

Science.gov (United States)

Onkham, Wilawan; Karwowski, Waldemar; Ahram, Tareq Z

2012-01-01

Financial costs of investing in people is associated with training, acquisition, recruiting, and resolving human errors have a significant impact on increased total ownership costs. These costs can also affect the exaggerate budgets and delayed schedules. The study of human performance economical assessment in the system acquisition process enhances the visibility of hidden cost drivers which support program management informed decisions. This paper presents the literature review of human total ownership cost (HTOC) and cost impacts on overall system performance. Economic value assessment models such as cost benefit analysis, risk-cost tradeoff analysis, expected value of utility function analysis (EV), growth readiness matrix, multi-attribute utility technique, and multi-regressions model were introduced to reflect the HTOC and human performance-technology tradeoffs in terms of the dollar value. The human total ownership regression model introduces to address the influencing human performance cost component measurement. Results from this study will increase understanding of relevant cost drivers in the system acquisition process over the long term.

Activity-based costing of health-care delivery, Haiti.

Science.gov (United States)

McBain, Ryan K; Jerome, Gregory; Leandre, Fernet; Browning, Micaela; Warsh, Jonathan; Shah, Mahek; Mistry, Bipin; Faure, Peterson Abnis I; Pierre, Claire; Fang, Anna P; Mugunga, Jean Claude; Gottlieb, Gary; Rhatigan, Joseph; Kaplan, Robert

2018-01-01

To evaluate the implementation of a time-driven activity-based costing analysis at five community health facilities in Haiti. Together with stakeholders, the project team decided that health-care providers should enter start and end times of the patient encounter in every fifth patient's medical dossier. We trained one data collector per facility, who manually entered the time recordings and patient characteristics in a database and submitted the data to a cloud-based data warehouse each week. We calculated the capacity cost per minute for each resource used. An automated web-based platform multiplied reported time with capacity cost rate and provided the information to health-facilities administrators. Between March 2014 and June 2015, the project tracked the clinical services for 7162 outpatients. The cost of care for specific conditions varied widely across the five facilities, due to heterogeneity in staffing and resources. For example, the average cost of a first antenatal-care visit ranged from 6.87 United States dollars (US$) at a low-level facility to US$ 25.06 at a high-level facility. Within facilities, we observed similarly variation in costs, due to factors such as patient comorbidities, patient arrival time, stocking of supplies at facilities and type of visit. Time-driven activity-based costing can be implemented in low-resource settings to guide resource allocation decisions. However, the extent to which this information will drive observable changes at patient, provider and institutional levels depends on several contextual factors, including budget constraints, management, policies and the political economy in which the health system is situated.

Working paper : national costs of the metropolitan ITS infrastructure : updated with 2004 deployment data

Science.gov (United States)

The purpose of this report, "Working Paper National Costs of the Metropolitan ITS infrastructure: Updated with 2004 Deployment Data," is to update the estimates of the costs remaining to deploy Intelligent Transportation Systems (ITS) infrastructure ...

Applying cost accounting to operating room staffing in otolaryngology: time-driven activity-based costing and outpatient adenotonsillectomy.

Science.gov (United States)

Balakrishnan, Karthik; Goico, Brian; Arjmand, Ellis M

2015-04-01

(1) To describe the application of a detailed cost-accounting method (time-driven activity-cased costing) to operating room personnel costs, avoiding the proxy use of hospital and provider charges. (2) To model potential cost efficiencies using different staffing models with the case study of outpatient adenotonsillectomy. Prospective cost analysis case study. Tertiary pediatric hospital. All otolaryngology providers and otolaryngology operating room staff at our institution. Time-driven activity-based costing demonstrated precise per-case and per-minute calculation of personnel costs. We identified several areas of unused personnel capacity in a basic staffing model. Per-case personnel costs decreased by 23.2% by allowing a surgeon to run 2 operating rooms, despite doubling all other staff. Further cost reductions up to a total of 26.4% were predicted with additional staffing rearrangements. Time-driven activity-based costing allows detailed understanding of not only personnel costs but also how personnel time is used. This in turn allows testing of alternative staffing models to decrease unused personnel capacity and increase efficiency. © American Academy of Otolaryngology—Head and Neck Surgery Foundation 2015.

Analisis Unit Cost Sectio Caesaria dengan Metode Activity Based Costing di Rumah Sakit Bhayangkara Yogyakarta

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Tsalisah Damayanti

2017-01-01

Full Text Available This study aims to analyze the unit cost of sectio Caesaria by ABC method, second to analyze the differences between the unit cost calculation of Sectio Caesaria by ABC method with applied cost. Unit cost analysis was conducted at Sectio Caesaria procedure without comorbidities or complications. Data that used in the form of primary data interviews with specialists Obgyn and secondary data financial data and hospitals profiles. The result of the calculation of unit cost of Sectio Caesaria service through Activity Based Costing approach is still lower than INA CBG’s tariff.

Low Cost and Flexible UAV Deployment of Sensors

DEFF Research Database (Denmark)

Sørensen, Lars Yndal; Jacobsen, Lars Toft; Hansen, John Paulin

2017-01-01

-collection needs. The main contribution is the extensible architecture for modularized airborne sensor deployment and real-time data visualisation. Our open-source Android application provides data collection, flight path definition and map tools. Total cost of the system is below 800 dollars. The flexibility...

Cost management in the internal value chain of integrated application of activity-based costing, Kaizen concept and target costing

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Pešić-Tomić Vesna

2014-01-01

Full Text Available The objective of this paper is an effort to view the possibilities of integrated use of target costing, activity based costing and Kaizen concept in the internal value chain as the central link of the entire chain. The idea is to stimulate the company management to think about the costs, position they take in the structure of price cost and their influence on forming the sales price since it is very important to produce right product for the consumer, of desired quality and functionality but along with as low production costs as possible. It is therefore needed to construct the right design of a product and provide its production at the shortest possible time along with as low costs as possible which will impact the efficiency of the entire value chain.

Comparative Analysis Of Conventional Method With Activity Based Costing In PT Mulia Sejati Gallery

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Irma Nadia Erena

2016-09-01

Full Text Available The goal of this research was to provide readers the information about the calculation methods, both traditional and activity-based costing in the application of the cost of production. The method used in this research was the qualitative method. The analysis was done by calculating the amount of the production cost using the traditional system and the magnitude of the production cost when using the activity-based costing system. The amount of each acquisition was then performed into data analysis. The results achieved are massive distortion between the calculations using traditional systems and activity based costing system. The conclusions of the whole thesis are activity-based costing system is considered more relevant than traditional systems that are currently used by the company.

Dashboard Auditing of Activity-Based Costing (ABC)

OpenAIRE

Sorinel Capusneanu

2009-01-01

This article aims to define the dashboard auditing according to the specifics of Activity-Based Costing method (ABC). It describes the main objectives of dashboard auditing, the criteria that a dashboard auditor should meet and the step-by-step stages of the entire dashboard auditing process according to the Activity-Based Costing method (ABC).

Comparative evaluation of activity-based costing and variable costing: a case study at IPEN

International Nuclear Information System (INIS)

Esteves, Josefina Maria da Silva SILVA

2010-01-01

This research aims to compare the results with the application of Activity Based Costing and Variable Costing methods in an administrative unit of the Brazilian Federal Government: the Radiopharmacy Facility of IPEN (Institute for Energy and Nuclear Research), which produces radiopharmaceuticals products and develops R and D activities. Faced with the need to adopt a more economical and managerial public administration, this research has provided information to assess which of the two costing methods proves more suitable for cost management in that unit. The research is exploratory and a single-case study. We traced about 80% of material costs by observation 'in loco' of the entire manufacturing process of technetium generator, which represents the main product in terms of production volume and revenues. The results show that the Contribution Margin Variable Costing of 29.12% is very close to the operating income of 28.86%, ahead of support activities, obtained by ABC. It is also noted that the operational result of the product does not change by using either one or another costing method. In the two costing methods the end result is 24.20%. This occurs because the production is on demand. There is no inventory of finished product because it is radioactive. The research has revealed that both methods provide useful information for the management and optimization of costs and results of processes/activities, and that the two methods, in this case, may be used in an integrated and complementary approach, enabling to use the best information content of both. (author)

Dashboard Auditing of Activity-Based Costing (ABC

Directory of Open Access Journals (Sweden)

Sorinel Capusneanu

2009-03-01

Full Text Available This article aims to define the dashboard auditing according to the specifics of Activity-Based Costing method (ABC. It describes the main objectives of dashboard auditing, the criteria that a dashboard auditor should meet and the step-by-step stages of the entire dashboard auditing process according to the Activity-Based Costing method (ABC.

Counting the costs of accreditation in acute care: an activity-based costing approach.

Science.gov (United States)

Mumford, Virginia; Greenfield, David; Hogden, Anne; Forde, Kevin; Westbrook, Johanna; Braithwaite, Jeffrey

2015-09-08

To assess the costs of hospital accreditation in Australia. Mixed methods design incorporating: stakeholder analysis; survey design and implementation; activity-based costs analysis; and expert panel review. Acute care hospitals accredited by the Australian Council for Health Care Standards. Six acute public hospitals across four States. Accreditation costs varied from 0.03% to 0.60% of total hospital operating costs per year, averaged across the 4-year accreditation cycle. Relatively higher costs were associated with the surveys years and with smaller facilities. At a national level these costs translate to $A36.83 million, equivalent to 0.1% of acute public hospital recurrent expenditure in the 2012 fiscal year. This is the first time accreditation costs have been independently evaluated across a wide range of hospitals and highlights the additional cost burden for smaller facilities. A better understanding of the costs allows policymakers to assess alternative accreditation and other quality improvement strategies, and understand their impact across a range of facilities. This methodology can be adapted to assess international accreditation programmes. Published by the BMJ Publishing Group Limited. For permission to use (where not already granted under a licence) please go to http://group.bmj.com/group/rights-licensing/permissions.

73 Activity Based Costing and Product Pricing Decision: the Nigerian Case

Directory of Open Access Journals (Sweden)

Ebipanipre Gabriel Mieseigha

2014-06-01

Full Text Available This paper examined activity based costing and product pricing decisions in Nigeria so as to ascertain whether activity based costing have the ability to enhance profitability and control cost of manufacturing firms. Towards this end, a multiple correlation and regression estimation technique was used in analyzing the data obtained in the study. The study found that activity based costing affects product costing and pricing decision. In addition, the results showed that improved profitability and cost control can be achieved by implementing activity based costing approach by manufacturing firms. The implication is that traditional costing approach fails in many pricing situations by arbitrarily allocating indirect cost and activity based costing helps in allocating indirect cost accurately. Thus, it was recommended amongst others that activity based costing need to be practiced, maintained and implemented by manufacturing firms since it has a broad range of uses for a wide variety of company functions and operations in the area of process analysis, strategy support, time-based accounting, monitoring wastage, as well as quality and productivity management.

Implementation of activity-based costing (ABC) to drive cost reduction efforts in a semiconductor manufacturing operation

Science.gov (United States)

Naguib, Hussein; Bol, Igor I.; Lora, J.; Chowdhry, R.

1994-09-01

This paper presents a case study on the implementation of ABC to calculate the cost per wafer and to drive cost reduction efforts for a new IC product line. The cost reduction activities were conducted through the efforts of 11 cross-functional teams which included members of the finance, purchasing, technology development, process engineering, equipment engineering, production control, and facility groups. The activities of these cross functional teams were coordinated by a cost council. It will be shown that these activities have resulted in a 57% reduction in the wafer manufacturing cost of the new product line. Factors contributed to successful implementation of an ABC management system are discussed.

Impacts of intermittent renewable generation on electricity system costs

International Nuclear Information System (INIS)

Batalla-Bejerano, Joan; Trujillo-Baute, Elisa

2016-01-01

A successful deployment of power generation coming from variable renewable sources, such as wind and solar photovoltaic, strongly depends on the economic cost of system integration. This paper, in seeking to look beyond the impact of renewable generation on the evolution of the total economic costs associated with the operation of the electricity system, aims to estimate the sensitivity of balancing market requirements and costs to the variable and non-fully predictable nature of intermittent renewable generation. The estimations reported in this paper for the Spanish electricity system stress the importance of both attributes as well as power system flexibility when accounting for the cost of balancing services. - Highlights: •A successful deployment of VRES-E strongly depends on the economic cost of its integration. •We estimate the sensitivity of balancing market requirements and costs to VRES-E. •Integration costs depend on variability, predictability and system flexibility.

Installed Cost Benchmarks and Deployment Barriers for Residential Solar Photovoltaics with Energy Storage: Q1 2016

Energy Technology Data Exchange (ETDEWEB)

Ardani, Kristen; O' Shaughnessy, Eric; Fu, Ran; McClurg, Chris; Huneycutt, Joshua; Margolis, Robert

2016-12-01

In this report, we fill a gap in the existing knowledge about PV-plus-storage system costs and value by providing detailed component- and system-level installed cost benchmarks for residential systems. We also examine other barriers to increased deployment of PV-plus-storage systems in the residential sector. The results are meant to help technology manufacturers, installers, and other stakeholders identify cost-reduction opportunities and inform decision makers about regulatory, policy, and market characteristics that impede solar plus storage deployment. In addition, our periodic cost benchmarks will document progress in cost reductions over time. To analyze costs for PV-plus-storage systems deployed in the first quarter of 2016, we adapt the National Renewable Energy Laboratory's component- and system-level cost-modeling methods for standalone PV. In general, we attempt to model best-in-class installation techniques and business operations from an installed-cost perspective. In addition to our original analysis, model development, and review of published literature, we derive inputs for our model and validate our draft results via interviews with industry and subject-matter experts. One challenge to analyzing the costs of PV-plus-storage systems is choosing an appropriate cost metric. Unlike standalone PV, energy storage lacks universally accepted cost metrics, such as dollars per watt of installed capacity and lifetime levelized cost of energy. We explain the difficulty of arriving at a standard approach for reporting storage costs and then provide the rationale for using the total installed costs of a standard PV-plus-storage system as our primary metric, rather than using a system-size-normalized metric.

ACTIVITY-BASED COSTING DAN SIMULATED ANNEALING UNTUK PENCARIAN RUTE PADA FLEXIBLE MANUFACTURING SYSTEMS

OpenAIRE

Gregorius Satia Budhi

2003-01-01

Flexible Manufacturing System (FMS) is a manufacturing system that is formed from several Numerical Controlled Machines combine with material handling system, so that different jobs can be worked by different machines sequences. FMS combine the high productivity and flexibility of Transfer Line and Job Shop manufacturing system. In this reasearch, Activity-Based Costing(ABC) approach was used as the weight to search the operation route in the proper machine, so that the total production cost ...

Assessing the cost-effectiveness of electric vehicles in European countries using integrated modeling

International Nuclear Information System (INIS)

Seixas, J.; Simões, S.; Dias, L.; Kanudia, A.; Fortes, P.; Gargiulo, M.

2015-01-01

Electric vehicles (EVs) are considered alternatives to internal combustion engines due to their energy efficiency and contribution to CO 2 mitigation. The adoption of EVs depends on consumer preferences, including cost, social status and driving habits, although it is agreed that current and expected costs play a major role. We use a partial equilibrium model that minimizes total energy system costs to assess whether EVs can be a cost-effective option for the consumers of each EU27 member state up to 2050, focusing on the impact of different vehicle investment costs and CO 2 mitigation targets. We found that for an EU-wide greenhouse gas emission reduction cap of 40% and 70% by 2050 vis-à-vis 1990 emissions, battery electric vehicles (BEVs) are cost-effective in the EU only by 2030 and only if their costs are 30% lower than currently expected. At the EU level, vehicle costs and the capability to deliver both short- and long-distance mobility are the main drivers of BEV deployment. Other drivers include each state’s national mobility patterns and the cost-effectiveness of alternative mitigation options, both in the transport sector, such as plug-in hybrid electric vehicles (PHEVs) or biofuels, and in other sectors, such as renewable electricity. - Highlights: • Electric vehicles were assessed through the minimization of the total energy systems costs. • EU climate policy targets could act as a major driver for PHEV adoption. • Battery EV is an option before 2030 if costs will drop by 30% from expected costs. • EV deployment varies per country depending on each energy system configuration. • Incentives at the country level should consider specific cost-effectiveness factors

A Practical Methodology for Disaggregating the Drivers of Drug Costs Using Administrative Data.

Science.gov (United States)

Lungu, Elena R; Manti, Orlando J; Levine, Mitchell A H; Clark, Douglas A; Potashnik, Tanya M; McKinley, Carol I

2017-09-01

Prescription drug expenditures represent a significant component of health care costs in Canada, with estimates of $28.8 billion spent in 2014. Identifying the major cost drivers and the effect they have on prescription drug expenditures allows policy makers and researchers to interpret current cost pressures and anticipate future expenditure levels. To identify the major drivers of prescription drug costs and to develop a methodology to disaggregate the impact of each of the individual drivers. The methodology proposed in this study uses the Laspeyres approach for cost decomposition. This approach isolates the effect of the change in a specific factor (e.g., price) by holding the other factor(s) (e.g., quantity) constant at the base-period value. The Laspeyres approach is expanded to a multi-factorial framework to isolate and quantify several factors that drive prescription drug cost. Three broad categories of effects are considered: volume, price and drug-mix effects. For each category, important sub-effects are quantified. This study presents a new and comprehensive methodology for decomposing the change in prescription drug costs over time including step-by-step demonstrations of how the formulas were derived. This methodology has practical applications for health policy decision makers and can aid researchers in conducting cost driver analyses. The methodology can be adjusted depending on the purpose and analytical depth of the research and data availability. © 2017 Journal of Population Therapeutics and Clinical Pharmacology. All rights reserved.

Cost-price estimation of clinical laboratory services based on activity-based costing: A case study from a developing country.

Science.gov (United States)

Mouseli, Ali; Barouni, Mohsen; Amiresmaili, Mohammadreza; Samiee, Siamak Mirab; Vali, Leila

2017-04-01

It is believed that laboratory tariffs in Iran don't reflect the real costs. This might expose private laboratories at financial hardship. Activity Based Costing is widely used as a cost measurement instrument to more closely approximate the true cost of operations. This study aimed to determine the real price of different clinical tests of a selected private clinical laboratory. This study was a cross sectional study carried out in 2015. The study setting was the private laboratories in the city of Kerman, Iran. Of 629 tests in the tariff book of the laboratory (relative value), 188 tests were conducted in the laboratory that used Activity Based Costing (ABC) methodology to estimate cost-price. Analyzing and cost-price estimating of laboratory services were performed by MY ABCM software Version 5.0. In 2015, the total costs were $641,645. Direct and indirect costs were 78.3% and 21.7% respectively. Laboratory consumable costs by 37% and personnel costs by 36.3% had the largest share of the costing. Also, group of hormone tests cost the most $147,741 (23.03%), and other tests group cost the least $3,611 (0.56%). Also after calculating the cost of laboratory services, a comparison was made between the calculated price and the private sector's tariffs in 2015. This study showed that there was a difference between costs and tariffs in the private laboratory. One way to overcome this problem is to increase the number of laboratory tests with regard to capacity of the laboratories.

Evaluation of Delivery Costs for External Beam Radiation Therapy and Brachytherapy for Locally Advanced Cervical Cancer Using Time-Driven Activity-Based Costing.

Science.gov (United States)

Bauer-Nilsen, Kristine; Hill, Colin; Trifiletti, Daniel M; Libby, Bruce; Lash, Donna H; Lain, Melody; Christodoulou, Deborah; Hodge, Constance; Showalter, Timothy N

2018-01-01

To evaluate the delivery costs, using time-driven activity-based costing, and reimbursement for definitive radiation therapy for locally advanced cervical cancer. Process maps were created to represent each step of the radiation treatment process and included personnel, equipment, and consumable supplies used to deliver care. Personnel were interviewed to estimate time involved to deliver care. Salary data, equipment purchasing information, and facilities costs were also obtained. We defined the capacity cost rate (CCR) for each resource and then calculated the total cost of patient care according to CCR and time for each resource. Costs were compared with 2016 Medicare reimbursement and relative value units (RVUs). The total cost of radiation therapy for cervical cancer was $12,861.68, with personnel costs constituting 49.8%. Brachytherapy cost $8610.68 (66.9% of total) and consumed 423 minutes of attending radiation oncologist time (80.0% of total). External beam radiation therapy cost $4055.01 (31.5% of total). Personnel costs were higher for brachytherapy than for the sum of simulation and external beam radiation therapy delivery ($4798.73 vs $1404.72). A full radiation therapy course provides radiation oncologists 149.77 RVUs with intensity modulated radiation therapy or 135.90 RVUs with 3-dimensional conformal radiation therapy, with total reimbursement of $23,321.71 and $16,071.90, respectively. Attending time per RVU is approximately 4-fold higher for brachytherapy (5.68 minutes) than 3-dimensional conformal radiation therapy (1.63 minutes) or intensity modulated radiation therapy (1.32 minutes). Time-driven activity-based costing was used to calculate the total cost of definitive radiation therapy for cervical cancer, revealing that brachytherapy delivery and personnel resources constituted the majority of costs. However, current reimbursement policy does not reflect the increased attending physician effort and delivery costs of brachytherapy. We

Break-Even Cost for Residential Photovoltaics in the United States: Key Drivers and Sensitivities

Energy Technology Data Exchange (ETDEWEB)

Denholm, P.; Margolis, R. M.; Ong, S.; Roberts, B.

2009-12-01

Grid parity--or break-even cost--for photovoltaic (PV) technology is defined as the point where the cost of PV-generated electricity equals the cost of electricity purchased from the grid. Break-even cost is expressed in $/W of an installed system. Achieving break-even cost is a function of many variables. Consequently, break-even costs vary by location and time for a country, such as the United States, with a diverse set of resources, electricity prices, and other variables. In this report, we analyze PV break-even costs for U.S. residential customers. We evaluate some key drivers of grid parity both regionally and over time. We also examine the impact of moving from flat to time-of-use (TOU) rates, and we evaluate individual components of the break-even cost, including effect of rate structure and various incentives. Finally, we examine how PV markets might evolve on a regional basis considering the sensitivity of the break-even cost to four major drivers: technical performance, financing parameters, electricity prices and rates, and policies. We find that local incentives rather than ?technical? parameters are in general the key drivers of the break-even cost of PV. Additionally, this analysis provides insight about the potential viability of PV markets.

Improving patient-level costing in the English and the German 'DRG' system.

Science.gov (United States)

Vogl, Matthias

2013-03-01

The purpose of this paper is to develop ways to improve patient-level cost apportioning (PLCA) in the English and German inpatient 'DRG' cost accounting systems, to support regulators in improving costing schemes, and to give clinicians and hospital management sophisticated tools to measure and link their management. The paper analyzes and evaluates the PLCA step in the cost accounting schemes of both countries according to the impact on the key aspects of DRG introduction: transparency and efficiency. The goal is to generate a best available PLCA standard with enhanced accuracy and managerial relevance, the main requirements of cost accounting. A best available PLCA standard in 'DRG' cost accounting uses: (1) the cost-matrix from the German system; (2) a third axis in this matrix, representing service-lines or clinical pathways; (3) a scoring system for key cost drivers with the long-term objective of time-driven activity-based costing and (4) a point of delivery separation. Both systems have elements that the other system can learn from. By combining their strengths, regulators are supported in enhancing PLCA systems, improving the accuracy of national reimbursement and the managerial relevance of inpatient cost accounting systems, in order to reduce costs in health care. Copyright © 2012 Elsevier Ireland Ltd. All rights reserved.

Time-driven activity based costing of total knee replacement surgery at a London teaching hospital.

Science.gov (United States)

Chen, Alvin; Sabharwal, Sanjeeve; Akhtar, Kashif; Makaram, Navnit; Gupte, Chinmay M

2015-12-01

The aim of this study was to conduct a time-driven activity based costing (TDABC) analysis of the clinical pathway for total knee replacement (TKR) and to determine where the major cost drivers lay. The in-patient pathway was prospectively mapped utilising a TDABC model, following 20 TKRs. The mean age for these patients was 73.4 years. All patients were ASA grade I or II and their mean BMI was 30.4. The 14 varus knees had a mean deformity of 5.32° and the six valgus knee had a mean deformity of 10.83°. Timings were prospectively collected as each patient was followed through the TKR pathway. Pre-operative costs including pre-assessment and joint school were £ 163. Total staff costs for admission and the operating theatre were £ 658. Consumables cost for the operating theatre were £ 1862. The average length of stay was 5.25 days at a total cost of £ 910. Trust overheads contributed £ 1651. The overall institutional cost of a 'noncomplex' TKR in patients without substantial medical co-morbidities was estimated to be £ 5422, representing a profit of £ 1065 based on a best practice tariff of £ 6487. The major cost drivers in the TKR pathway were determined to be theatre consumables, corporate overheads, overall ward cost and operating theatre staffing costs. Appropriate discounting of implant costs, reduction in length of stay by adopting an enhanced recovery programme and control of corporate overheads through the use of elective orthopaedic treatment centres are proposed approaches for reducing the overall cost of treatment. Copyright © 2015 Elsevier B.V. All rights reserved.

Activity – based costing in sport organizations:Theoretical background & future prospects

Directory of Open Access Journals (Sweden)

PANAGIOTIS E. DIMITROPOULOS

2007-01-01

Full Text Available Costing systems in recent years have shown a significantdevelopment and activity-based costing (ABC specificallyhas been considered as a major contribution to cost management, particularly in service businesses. The sport sector is composed to a great extent of service functions, yet considerably less have been reported of the use of activity based costing to support cost management in sport organizations. Since the power of information becomes continuously crucial for the implementation of effective business administration, the traditional methods of cost measurementproved insufficient on this issue, leading to the invention ofABC. The aim of this paper is twofold. First of all we wantto present the main theoretical background of ABC and itssubstantiated benefits, and secondly to present some practical steps for the implementation of ABC in sport organizations.

Benchmarking in pathology: development of an activity-based costing model.

Science.gov (United States)

Burnett, Leslie; Wilson, Roger; Pfeffer, Sally; Lowry, John

2012-12-01

Benchmarking in Pathology (BiP) allows pathology laboratories to determine the unit cost of all laboratory tests and procedures, and also provides organisational productivity indices allowing comparisons of performance with other BiP participants. We describe 14 years of progressive enhancement to a BiP program, including the implementation of 'avoidable costs' as the accounting basis for allocation of costs rather than previous approaches using 'total costs'. A hierarchical tree-structured activity-based costing model distributes 'avoidable costs' attributable to the pathology activities component of a pathology laboratory operation. The hierarchical tree model permits costs to be allocated across multiple laboratory sites and organisational structures. This has enabled benchmarking on a number of levels, including test profiles and non-testing related workload activities. The development of methods for dealing with variable cost inputs, allocation of indirect costs using imputation techniques, panels of tests, and blood-bank record keeping, have been successfully integrated into the costing model. A variety of laboratory management reports are produced, including the 'cost per test' of each pathology 'test' output. Benchmarking comparisons may be undertaken at any and all of the 'cost per test' and 'cost per Benchmarking Complexity Unit' level, 'discipline/department' (sub-specialty) level, or overall laboratory/site and organisational levels. We have completed development of a national BiP program. An activity-based costing methodology based on avoidable costs overcomes many problems of previous benchmarking studies based on total costs. The use of benchmarking complexity adjustment permits correction for varying test-mix and diagnostic complexity between laboratories. Use of iterative communication strategies with program participants can overcome many obstacles and lead to innovations.

Cost Model for Digital Preservation: Cost of Digital Migration

DEFF Research Database (Denmark)

Kejser, Ulla Bøgvad; Nielsen, Anders Bo; Thirifays, Alex

2011-01-01

The Danish Ministry of Culture has funded a project to set up a model for costing preservation of digital materials held by national cultural heritage institutions. The overall objective of the project was to increase cost effectiveness of digital preservation activities and to provide a basis...... for comparing and estimating future cost requirements for digital preservation. In this study we describe an activity-based costing methodology for digital preservation based on the Open Archice Information System (OAIS) Reference Model. Within this framework, which we denote the Cost Model for Digital...... Preservation (CMDP), the focus is on costing the functional entity Preservation Planning from the OAIS and digital migration activities. In order to estimate these costs we have identified cost-critical activities by analysing the functions in the OAIS model and the flows between them. The analysis has been...

[Clinical study using activity-based costing to assess cost-effectiveness of a wound management system utilizing modern dressings in comparison with traditional wound care].

Science.gov (United States)

Ohura, Takehiko; Sanada, Hiromi; Mino, Yoshio

2004-01-01

In recent years, the concept of cost-effectiveness, including medical delivery and health service fee systems, has become widespread in Japanese health care. In the field of pressure ulcer management, the recent introduction of penalty subtraction in the care fee system emphasizes the need for prevention and cost-effective care of pressure ulcer. Previous cost-effectiveness research on pressure ulcer management tended to focus only on "hardware" costs such as those for pharmaceuticals and medical supplies, while neglecting other cost aspects, particularly those involving the cost of labor. Thus, cost-effectiveness in pressure ulcer care has not yet been fully established. To provide true cost effectiveness data, a comparative prospective study was initiated in patients with stage II and III pressure ulcers. Considering the potential impact of the pressure reduction mattress on clinical outcome, in particular, the same type of pressure reduction mattresses are utilized in all the cases in the study. The cost analysis method used was Activity-Based Costing, which measures material and labor cost aspects on a daily basis. A reduction in the Pressure Sore Status Tool (PSST) score was used to measure clinical effectiveness. Patients were divided into three groups based on the treatment method and on the use of a consistent algorithm of wound care: 1. MC/A group, modern dressings with a treatment algorithm (control cohort). 2. TC/A group, traditional care (ointment and gauze) with a treatment algorithm. 3. TC/NA group, traditional care (ointment and gauze) without a treatment algorithm. The results revealed that MC/A is more cost-effective than both TC/A and TC/NA. This suggests that appropriate utilization of modern dressing materials and a pressure ulcer care algorithm would contribute to reducing health care costs, improved clinical results, and, ultimately, greater cost-effectiveness.

Maintenance cost models in deregulated power systems under opportunity costs

International Nuclear Information System (INIS)

Al-Arfaj, K.; Dahal, K.; Azaiez, M.N.

2007-01-01

In a centralized power system, the operator is responsible for scheduling maintenance. There are different types of maintenance, including corrective maintenance; predictive maintenance; preventive maintenance; and reliability-centred maintenance. The main cause of power failures is poor maintenance. As such, maintenance costs play a significant role in deregulated power systems. They include direct costs associated with material and labor costs as well as indirect costs associated with spare parts inventory, shipment, test equipment, indirect labor, opportunity costs and cost of failure. In maintenance scheduling and planning, the cost function is the only component of the objective function. This paper presented the results of a study in which different components of maintenance costs were modeled. The maintenance models were formulated as an optimization problem with single and multiple objectives and a set of constraints. The maintenance costs models could be used to schedule the maintenance activities of power generators more accurately and to identify the best maintenance strategies over a period of time as they consider failure and opportunity costs in a deregulated environment. 32 refs., 4 tabs., 4 figs

FORMATION OF THE ENTERPRISE COSTS MANAGEMENT SYSTEM

Directory of Open Access Journals (Sweden)

Borysiuk Iryna

2018-01-01

Full Text Available Introduction. The paper deals with the actual issues of formation of the enterprise management system costs, because in the conditions of an unstable market environment the financial performance depends on the efficiency of the cost management system, competitiveness, financial sustainability and investment attractiveness of any subject of economic activity. Purpose of the article is consolidation of approaches to cost management, theoretical substantiation and development of recommendations regarding the formation of the enterprise cost management system. Results. Development of an enterprise cost management system based on research on the essence and cost management approaches. The goals, tasks, principles, methods, tools, functions and main elements of the cost management system were determined, factors of the external and internal environment of the enterprise, that affect the system of its costs management. Conclusions. Formation of integrated cost management system ensures the successful company operation on the market, production of competitive products based on costs and prices optimization and making a profit, increase of the reasonableness of making managerial decisions.

Parametric cost models for space telescopes

Science.gov (United States)

Stahl, H. Philip; Henrichs, Todd; Dollinger, Courtnay

2017-11-01

Multivariable parametric cost models for space telescopes provide several benefits to designers and space system project managers. They identify major architectural cost drivers and allow high-level design trades. They enable cost-benefit analysis for technology development investment. And, they provide a basis for estimating total project cost. A survey of historical models found that there is no definitive space telescope cost model. In fact, published models vary greatly [1]. Thus, there is a need for parametric space telescopes cost models. An effort is underway to develop single variable [2] and multi-variable [3] parametric space telescope cost models based on the latest available data and applying rigorous analytical techniques. Specific cost estimating relationships (CERs) have been developed which show that aperture diameter is the primary cost driver for large space telescopes; technology development as a function of time reduces cost at the rate of 50% per 17 years; it costs less per square meter of collecting aperture to build a large telescope than a small telescope; and increasing mass reduces cost.

Parametric Cost Models for Space Telescopes

Science.gov (United States)

Stahl, H. Philip; Henrichs, Todd; Dollinger, Courtney

2010-01-01

Multivariable parametric cost models for space telescopes provide several benefits to designers and space system project managers. They identify major architectural cost drivers and allow high-level design trades. They enable cost-benefit analysis for technology development investment. And, they provide a basis for estimating total project cost. A survey of historical models found that there is no definitive space telescope cost model. In fact, published models vary greatly [1]. Thus, there is a need for parametric space telescopes cost models. An effort is underway to develop single variable [2] and multi-variable [3] parametric space telescope cost models based on the latest available data and applying rigorous analytical techniques. Specific cost estimating relationships (CERs) have been developed which show that aperture diameter is the primary cost driver for large space telescopes; technology development as a function of time reduces cost at the rate of 50% per 17 years; it costs less per square meter of collecting aperture to build a large telescope than a small telescope; and increasing mass reduces cost.

Cost and performance analysis of physical security systems

International Nuclear Information System (INIS)

Hicks, M.J.; Yates, D.; Jago, W.H.

1997-01-01

CPA - Cost and Performance Analysis - is a prototype integration of existing PC-based cost and performance analysis tools: ACEIT (Automated Cost Estimating Integrated Tools) and ASSESS (Analytic System and Software for Evaluating Safeguards and Security). ACE is an existing DOD PC-based tool that supports cost analysis over the full life cycle of a system; that is, the cost to procure, operate, maintain and retire the system and all of its components. ASSESS is an existing DOE PC-based tool for analysis of performance of physical protection systems. Through CPA, the cost and performance data are collected into Excel workbooks, making the data readily available to analysts and decision makers in both tabular and graphical formats and at both the system and subsystem levels. The structure of the cost spreadsheets incorporates an activity-based approach to cost estimation. Activity-based costing (ABC) is an accounting philosophy used by industry to trace direct and indirect costs to the products or services of a business unit. By tracing costs through security sensors and procedures and then mapping the contributions of the various sensors and procedures to system effectiveness, the CPA architecture can provide security managers with information critical for both operational and strategic decisions. The architecture, features and applications of the CPA prototype are presented. 5 refs., 3 figs

The Budgetary Process with a Use of Modern Approaches in Cost Management

Directory of Open Access Journals (Sweden)

Jiří Hammer

2016-01-01

Full Text Available State organisational units still compile their budget as incremental and as such it therefore disregards causes of the origination of costs and does not put a sufficient pressure on increase in efficiency of economy. This article aims to propose a budgetary setup for operating costs using the methods of ABC/ABM (Activity Based Costing/Activity Based Management in state organisational units (SOU. Essence of the proposed procedure towards budgetary setup as well as cost management is specification of such cost drivers that reflect the causal link between activities of the given organisation and indirect operating costs. Through a system of linear equations there is in turn resolved parity between demands on budgetary funding of a specific activity and full costs of activities. Using a multiple regression analyses, for selected cost groups there was also tested their dependence upon criteria that may act as general cost drivers. Undertaken research has also uncovered that frequently used variable “number of workers” cannot explain the analysed cost groups. Benefit of proposed solutions is increase in efficiency of SOU economy. This way, the management receives a tool for budgeting and cost control not only within the process structure based on activities, but also within individual items of the budgetary classification.

Estimation of cellular manufacturing cost components using simulation and activity-based costing

OpenAIRE

Paul Savory; Robert Williams

2010-01-01

It can be difficult estimating all of the cost components that are attributed to a machined part.  This problem is more pronounced when a factory uses group technology manufacturing cells as opposed to a functional or process layout of a job shop.  This paper describes how activity-based costing (ABC) concepts can be integrated into a discrete-event simulation model of a U-shaped manufacturing cell producing a part family with four members.  The simulation model generates detai...

Estimation of cellular manufacturing cost components using simulation and activity-based costing

OpenAIRE

Savory, Paul

2010-01-01

It can be difficult estimating all of the cost components that are attributed to a machined part. This problem is more pronounced when a factory uses group technology manufacturing cells as opposed to a functional or process layout of a job shop. This paper describes how activity-based costing (ABC) concepts can be integrated into a discrete-event simulation model of a U-shaped manufacturing cell producing a part family with four members. The simulation model generates detailed Bills of Ac...

A STUDY ON THE ABC APPROACH IN COST MANAGEMENT PRACTICE

Directory of Open Access Journals (Sweden)

Violeta ISAI

2014-06-01

Full Text Available Activity-based costing (ABC, an alternative approach to traditional accounting, represents a costing methodology that identifies the main cost drivers, or the main activities in an organization, thus assigning the cost of the products and services according to the number of specific activities or transactions used in the development process of a product or service. This system is based on the measurement of all the activities performed within an organization and provides the companies with the opportunity to efficiently improve their activity or to reduce the costs with no quality loss for their customers. The primary aim of ABC method was to implement a logical system of additional allocation with a better information and improvement in the field of managerial policies, a real cost structure on the basis of which strategic managerial decisions could be further adopted. Under the terms of a continuous growth of fixed cost weighting, we will become more interested in the calculation system of process costing. This costs calculation method can bring on important benefits, especially for service provider companies, considering the high share of common- indirect costs (overhead, in their unit.

PENERAPAN ACTIVITY BASED COSTING SYSTEM DALAM MENENTUKAN HARGA POKOK (Studi Kasus Penentuan Besarnya Tarif Jasa Rawat Inap Pada RSUD Deli Serdang Lubuk Pakam )

OpenAIRE

TIARA, SHITA; HADINI, SYARIFAH LIDYA

2015-01-01

Activity Based Costing System is an accounting information system that implements the concepts of accounting activity to produce more accurate cost. Activity-based cost calculation is costing approach that charge resources to cost objects such as products, services, or customer based activities undertaken for the cost objects. Deli Serdang Hospital in determining the basic price is still using the traditional cost accounting. This system is not suitable for the calculation of the cost of prod...

Cost of space-based laser ballistic missile defense.

Science.gov (United States)

Field, G; Spergel, D

1986-03-21

Orbiting platforms carrying infrared lasers have been proposed as weapons forming the first tier of a ballistic missile defense system under the President's Strategic Defense Initiative. As each laser platform can destroy a limited number of missiles, one of several methods of countering such a system is to increase the number of offensive missiles. Hence it is important to know whether the cost-exchange ratio, defined as the ratio of the cost to the defense of destroying a missile to the cost to the offense of deploying an additional missile, is greater or less than 1. Although the technology to be used in a ballistic missile defense system is still extremely uncertain, it is useful to examine methods for calculating the cost-exchange ratio. As an example, the cost of an orbiting infrared laser ballistic missile defense system employed against intercontinental ballistic missiles launched simultaneously from a small area is compared to the cost of additional offensive missiles. If one adopts lower limits to the costs for the defense and upper limits to the costs for the offense, the cost-exchange ratio comes out substantially greater than 1. If these estimates are confirmed, such a ballistic missile defense system would be unable to maintain its effectiveness at less cost than it would take to proliferate the ballistic missiles necessary to overcome it and would therefore not satisfy the President's requirements for an effective strategic defense. Although the method is illustrated by applying it to a space-based infrared laser system, it should be straightforward to apply it to other proposed systems.

Comparative Analysis of Conventional Method with Activity Based Costing in PT Mulia Sejati Gallery

OpenAIRE

Erena, Irma Nadia; Gani, Engelwati

2016-01-01

The goal of this research was to provide readers the information about the calculation methods, both traditional and activity-based costing in the application of the cost of production. The method used in this research was the qualitative method. The analysis was done by calculating the amount of the production cost using the traditional system and the magnitude of the production cost when using the activity-based costing system. The amount of each acquisition was then performed into data ana...

ACTIVITY-BASED COSTING DAN SIMULATED ANNEALING UNTUK PENCARIAN RUTE PADA FLEXIBLE MANUFACTURING SYSTEMS

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Gregorius Satia Budhi

2003-01-01

Full Text Available Flexible Manufacturing System (FMS is a manufacturing system that is formed from several Numerical Controlled Machines combine with material handling system, so that different jobs can be worked by different machines sequences. FMS combine the high productivity and flexibility of Transfer Line and Job Shop manufacturing system. In this reasearch, Activity-Based Costing(ABC approach was used as the weight to search the operation route in the proper machine, so that the total production cost can be optimized. The search method that was used in this experiment is Simulated Annealling, a variant form Hill Climbing Search method. An ideal operation time to proses a part was used as the annealling schedule. From the empirical test, it could be proved that the use of ABC approach and Simulated Annealing to search the route (routing process can optimize the Total Production Cost. In the other hand, the use of ideal operation time to process a part as annealing schedule can control the processing time well. Abstract in Bahasa Indonesia : Flexible Manufacturing System (FMS adalah sistem manufaktur yang tersusun dari mesin-mesin Numerical Control (NC yang dikombinasi dengan Sistem Penanganan Material, sehingga job-job berbeda dikerjakan oleh mesin-mesin dengan alur yang berlainan. FMS menggabungkan produktifitas dan fleksibilitas yang tinggi dari Sistem Manufaktur Transfer Line dan Job Shop. Pada riset ini pendekatan Activity-Based Costing (ABC digunakan sebagai bobot / weight dalam pencarian rute operasi pada mesin yang tepat, untuk lebih mengoptimasi biaya produksi secara keseluruhan. Adapun metode Searching yang digunakan adalah Simulated Annealing yang merupakan varian dari metode searching Hill Climbing. Waktu operasi ideal untuk memproses sebuah part digunakan sebagai Annealing Schedulenya. Dari hasil pengujian empiris dapat dibuktikan bahwa penggunaan pendekatan ABC dan Simulated Annealing untuk proses pencarian rute (routing dapat lebih

Development of a Practical Costing Method for Hospitals

OpenAIRE

Cao, Pengyu; Toyabe, Shin-ichi; Akazawa, Kouhei

2006-01-01

To realize an effective cost control, a practical and accurate cost accounting system is indispensable in hospitals. In traditional cost accounting systems, the volume-based costing (VBC) is the most popular cost accounting method. In this method, the indirect costs are allocated to each cost object (services or units of a hospital) using a single indicator named a cost driver (e.g., Labor hours, revenues or the number of patients). However, this method often results in rough and inaccurate r...

Process-based costing.

Science.gov (United States)

Lee, Robert H; Bott, Marjorie J; Forbes, Sarah; Redford, Linda; Swagerty, Daniel L; Taunton, Roma Lee

2003-01-01

Understanding how quality improvement affects costs is important. Unfortunately, low-cost, reliable ways of measuring direct costs are scarce. This article builds on the principles of process improvement to develop a costing strategy that meets both criteria. Process-based costing has 4 steps: developing a flowchart, estimating resource use, valuing resources, and calculating direct costs. To illustrate the technique, this article uses it to cost the care planning process in 3 long-term care facilities. We conclude that process-based costing is easy to implement; generates reliable, valid data; and allows nursing managers to assess the costs of new or modified processes.

Measuring the cost of care in benign prostatic hyperplasia using time-driven activity-based costing (TDABC).

Science.gov (United States)

Kaplan, A L; Agarwal, N; Setlur, N P; Tan, H J; Niedzwiecki, D; McLaughlin, N; Burke, M A; Steinberg, K; Chamie, K; Saigal, C S

2015-03-01

Determining '"value'" in health care, defined as outcomes per unit cost, depends on accurately measuring cost. We used time-driven activity-based costing (TDABC) to determine the cost of care in men with benign prostatic hyperplasia (BPH) - a common urologic condition. We implemented TDABC across the entire care pathway for BPH including primary and specialist care in both inpatient and outpatient settings. A team of expert stakeholders created detailed process maps, determined space and product costs, and calculated personnel capacity cost rates. A model pathway was derived from practice guidelines and calculated costs were applied. Although listed as 'optional' in practice guidelines, invasive diagnostic testing can increase costs by 150% compared with the standalone urology clinic visit. Of five different surgical options, a 400% cost discrepancy exists between the most and least expensive treatments. TDABC can be used to measure cost across an entire care pathway in a large academic medical center. Sizable cost variation exists between diagnostic and surgical modalities for men with BPH. As financial risk is shifted toward providers, understanding the cost of care will be vital. Future work is needed to determine outcome discrepancy between the diagnostic and surgical modalities in BPH. Copyright © 2014 Elsevier Inc. All rights reserved.

Selected Tether Applications Cost Model

Science.gov (United States)

Keeley, Michael G.

1988-01-01

Diverse cost-estimating techniques and data combined into single program. Selected Tether Applications Cost Model (STACOM 1.0) is interactive accounting software tool providing means for combining several independent cost-estimating programs into fully-integrated mathematical model capable of assessing costs, analyzing benefits, providing file-handling utilities, and putting out information in text and graphical forms to screen, printer, or plotter. Program based on Lotus 1-2-3, version 2.0. Developed to provide clear, concise traceability and visibility into methodology and rationale for estimating costs and benefits of operations of Space Station tether deployer system.

Computing Cost Price for Cataract Surgery by Activity Based Costing (ABC Method at Hazrat-E-Zahra Hospital, Isfahan University of Medical Sciences, 2014

Directory of Open Access Journals (Sweden)

Masuod Ferdosi

2016-10-01

Full Text Available Background: Hospital managers need to have accurate information about actual costs to make efficient and effective decisions. In activity based costing method, first, activities are recognized and then direct and indirect costs are computed based on allocation methods. The aim of this study was to compute the cost price for cataract surgery by Activity Based Costing (ABC method at Hazrat-e-Zahra Hospital, Isfahan University of Medical Sciences. Methods: This was a cross- sectional study for computing the costs of cataract surgery by activity based costing technique in Hazrat-e-Zahra Hospital in Isfahan University of Medical Sciences, 2014. Data were collected through interview and direct observation and analyzed by Excel software. Results: According to the results of this study, total cost in cataract surgery was 8,368,978 Rials. Personnel cost included 62.2% (5,213,574 Rials of total cost of cataract surgery that is the highest share of surgery costs. The cost of consumables was 7.57% (1,992,852 Rials of surgery costs. Conclusion: Based on the results, there was different between cost price of the services and public Tariff which appears as hazards or financial crises to the hospital. Therefore, it is recommended to use the right methods to compute the costs relating to Activity Based Costing. Cost price of cataract surgery can be reduced by strategies such as decreasing the cost of consumables.

Suggest Solutions for Diffusion and Implementation of Activity-Based Costing In Vietnam

OpenAIRE

Tandung Huynh; Guangming Gong; Huyhanh Huynh

2014-01-01

Activity-Based Costing (ABC) was developed by Robert S. Kaplan in the mid-1980s and up to now the academics, researchers as well as accounting practitioners have perceived it as the normative appropriate cost system. It has been considered as a method to overcome the shortcomings of the traditional costing. However, the application the new method as ABC is a challenge for Vietnamese companies because most of them have used traditional costing for calculating product cost. Changing from tradit...

Penerapan Metode Activity Based Costing dalam Menentukan Harga Pokok Produksi Karet PT. Sumber Djantin Sambas

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Gowardy Gowardy

2015-12-01

Full Text Available This study aims to understand how to allocate overhead cost in rubber-processing factory of PT. Sumber Djantin Sambas using Activity-Based Costing method. Furthermore, this research also attempts to compare the allocation results of the existing costing systems in PT. Sumber Djantin Sambas with those created through Activity-Based Costing systems. To accomplish these objectives, this study applies case study method. The main sources of data come from interview transcript and cost and financial documents. This study results show that the cost of goods manufactured for product SIR 20 and compound rubber are overcosted. Betweeen these two products, SIR 20 is more overcosted. The total overcosting of these two products reaches Rp 2.749.997.488,57. Using Activity Based Costing, company can allocate the costs more accurately and reduce the distortion effect of costs which is caused by traditional overhead allocation method.

Cost drivers for the assessment of nuclear power plant life extension

International Nuclear Information System (INIS)

2002-09-01

various cost elements of NPP life extension or NPP life management (PLIM). Within the context of this document, plant life is assumed to be the design life specified by the designer in the original design basis document or, if not available) the original economic design life specified by the operator and commencing at commercial operating date of the plant. PLEX is the operating period beyond the originally set plant life. The report is structured as follows: Section 2 presents the current trends in the energy and electricity sector; Section 3 covers the recent IAEA and NEA activities in the area; Section 4 describes the purpose of the technical document; Section 5 discusses the decision process of PLEX, describes the overall framework in which the cost drivers of PLEX schemes are identified and categorized, and provides the reference PLEX cost driver matrix; Section 6 gives an overview of national and regulatory approaches on PLEX/PLIM, drawn from responses to the questionnaire provided from Member States, as well as from other available information. The basis of PLEX/PLIM cost estimates and scope of activities for each of the plants reported are also presented in this section; Section 7 presents the PLEX/PLIM cost ranges based on the responses to the questionnaire; Section 8 contains some general observations and conclusions. At the end of the report references to the information sources used are given, as well as the list of abbreviations and the list of experts who contributed to the preparation of this document. Four appendices provide complementary information: Appendix I presents Gentilly 2 case study; Appendix II gives a generic list of critical items with emphasis on PLIM for a PWR/PHWR NPP; Appendix III provides a PLEX cost driver matrix, to be used in the form of guidelines when evaluating PLEX costs; and Appendix IV presents the list of organizations providing responses to the questionnaire

Implementation Opportunities of Green Accounting for Activity-Based Costing (ABC in Romania

Directory of Open Access Journals (Sweden)

Sorinel Capusneanu

2008-01-01

Full Text Available This article refers to implementation opportunities of green accounting for the Activity- Based Costing method. It shows why we choose Activity-Based Costing method and what must be done in this way. Green accounting observes the specific principles of the Activity-Based Costing method. It also represents the advantages and disadvantages of the green accounting into an enterprise in case of Activity-Based Costing implementation. The paper describes the stages we must follow in case of implementation of green accounting alongside Activity-Based Costing method into an enterprise.

[Activity-based costing methodology to manage resources in intensive care units].

Science.gov (United States)

Alvear V, Sandra; Canteros G, Jorge; Jara M, Juan; Rodríguez C, Patricia

2013-11-01

An accurate estimation of resources use by individual patients is crucial in hospital management. To measure financial costs of health care actions in intensive care units of two public regional hospitals in Chile. Prospective follow up of 716 patients admitted to two intensive care units during 2011. The financial costs of health care activities was calculated using the Activity-Based Costing methodology. The main activities recorded were procedures and treatments, monitoring, response to patient needs, patient maintenance and coordination. Activity-Based Costs, including human resources and assorted indirect costs correspond to 81 to 88% of costs per disease in one hospital and 69 to 80% in the other. The costs associated to procedures and treatments are the most significant and are approximately $100,000 (Chilean pesos) per day of hospitalization. The second most significant cost corresponds to coordination activities, which fluctuates between $86,000 and 122,000 (Chilean pesos). There are significant differences in resources use between the two hospitals studied. Therefore cost estimation methodologies should be incorporated in the management of these clinical services.

Has cost containment after the National Health Insurance system been successful? Determinants of Taiwan hospital costs.

Science.gov (United States)

Hung, Jung-Hua; Chang, Li

2008-03-01

Taiwan implemented the National Health Insurance system (NHI) in 1995. After the NHI, the insurance coverage expanded and the quality of healthcare improved, however, the healthcare costs significantly escalated. The objective of this study is to determine what factors have direct impact on the increased costs after the NHI. Panel data analysis is used to investigate changes and factors affecting cost containment at Taipei municipal hospitals from 1990 to 2001. The results show that the expansion of insured healthcare coverage (especially to the elderly and the treatment of more complicated types of diseases), and the increased competition (requiring the growth of new technology and the longer average length of stay) are important driving forces behind the increase of hospital costs, directly influenced by the advent of the NHI. Therefore, policymakers should emphasize health prevention activities and disease management programs for the elderly to improve cost containment. In addition, hospital managers should find ways to improve the hospital efficiency (shorten the LOS) to reduce excess services and medical waste. They also need to better understand their market position and acquire suitable new-tech equipment earlier, to be a leader, not a follower. Finally, policymakers should establish related benchmark indices for what drivers up hospital costs (micro-aspect) and to control healthcare expenditures (macro-level).

Using a Time-Driven Activity-Based Costing Model To Determine the Actual Cost of Services Provided by a Transgenic Core.

Science.gov (United States)

Gerwin, Philip M; Norinsky, Rada M; Tolwani, Ravi J

2018-03-01

Laboratory animal programs and core laboratories often set service rates based on cost estimates. However, actual costs may be unknown, and service rates may not reflect the actual cost of services. Accurately evaluating the actual costs of services can be challenging and time-consuming. We used a time-driven activity-based costing (ABC) model to determine the cost of services provided by a resource laboratory at our institution. The time-driven approach is a more efficient approach to calculating costs than using a traditional ABC model. We calculated only 2 parameters: the time required to perform an activity and the unit cost of the activity based on employee cost. This method allowed us to rapidly and accurately calculate the actual cost of services provided, including microinjection of a DNA construct, microinjection of embryonic stem cells, embryo transfer, and in vitro fertilization. We successfully implemented a time-driven ABC model to evaluate the cost of these services and the capacity of labor used to deliver them. We determined how actual costs compared with current service rates. In addition, we determined that the labor supplied to conduct all services (10,645 min/wk) exceeded the practical labor capacity (8400 min/wk), indicating that the laboratory team was highly efficient and that additional labor capacity was needed to prevent overloading of the current team. Importantly, this time-driven ABC approach allowed us to establish a baseline model that can easily be updated to reflect operational changes or changes in labor costs. We demonstrated that a time-driven ABC model is a powerful management tool that can be applied to other core facilities as well as to entire animal programs, providing valuable information that can be used to set rates based on the actual cost of services and to improve operating efficiency.

Time-Driven Activity-Based Costing: A Comparative Cost Analysis of Whole-Breast Radiotherapy Versus Balloon-Based Brachytherapy in the Management of Early-Stage Breast Cancer.

Science.gov (United States)

Schutzer, Matthew E; Arthur, Douglas W; Anscher, Mitchell S

2016-05-01

Value in health care is defined as outcomes achieved per dollar spent, and understanding cost is critical to delivering high-value care. Traditional costing methods reflect charges rather than fundamental costs to provide a service. The more rigorous method of time-driven activity-based costing was used to compare cost between whole-breast radiotherapy (WBRT) and accelerated partial-breast irradiation (APBI) using balloon-based brachytherapy. For WBRT (25 fractions with five-fraction boost) and APBI (10 fractions twice daily), process maps were created outlining each activity from consultation to post-treatment follow up. Through staff interviews, time estimates were obtained for each activity. The capacity cost rates (CCR), defined as cost per minute, were calculated for personnel, equipment, and physical space. Total cost was calculated by multiplying the time required of each resource by its CCR. This was then summed and combined with cost of consumable materials. The total cost for WBRT was $5,333 and comprised 56% personnel costs and 44% space/equipment costs. For APBI, the total cost was $6,941 (30% higher than WBRT) and comprised 51% personnel costs, 6% space/equipment costs, and 43% consumable materials costs. The attending physician had the highest CCR of all personnel ($4.28/min), and APBI required 24% more attending time than WBRT. The most expensive activity for APBI was balloon placement and for WBRT was computed tomography simulation. APBI cost more than WBRT when using the dose/fractionation schemes analyzed. Future research should use time-driven activity-based costing to better understand cost with the aim of reducing expenditure and defining bundled payments. Copyright © 2016 by American Society of Clinical Oncology.

Discriminant Analysis of the Effects of Software Cost Drivers on ...

African Journals Online (AJOL)

The paper work investigates the effect of software cost drivers on project schedule estimation of software development projects in Nigeria. Specifically, the paper determines the extent to which software cost variables affect our software project time schedule in our environment. Such studies are lacking in the recent ...

Activity-based costing evaluation of [18F]-fludeoxyglucose production.

Science.gov (United States)

Krug, Bruno; Van Zanten, Annie; Pirson, Anne-Sophie; Crott, Ralph; Vander Borght, Thierry

2008-01-01

As healthcare expenses are escalating in many countries, the sector faces a new challenge of becoming more cost efficient. There is an urgent need for more accurate data on the costs of healthcare procedures. The cost of Positron Emission Tomography (PET) with [(18)F]-fludeoxyglucose ((18)F-FDG) studies is mainly influenced by the price of the radiopharmaceutical, which may vary throughout Europe from 300 to 500 Euro per patient dose (370 MBq). The aim of the current study is to conduct an activity-based costing (ABC) estimation of (18)F-FDG production in Europe to better identify the different cost components and to analyse their relative contribution to the total cost. Financial data were collected on capital expense and global operating costs through interviews with industry experts, PET centre managers, evaluation of prior studies, and review of expenses incurred at the University Medical Centre in Groningen (The Netherlands). After mapping the activities, we divided the cost in five categories: wage, equipment, consumables, overhead and space costs. A sensitivity analysis was performed for key cost components, including the compliance with regulatory requirements. The critical factor for profitability was throughput. Including the European regulation procedure, the cost for 370 MBq (18)F-FDG patient dose, 3 h EOS without delivery cost, ranges between 155 and 177 Euro/dose for two production runs and between 210 and 237 Euro/dose for one production run. These costs are predominantly determined by personnel and equipment costs, although the cost for quality assurance increases steadily. The ABC analysis provides significant insight into the production cost components of (18)F-FDG through different operating configurations. Reductions in equipment prices, increased availability of radiopharmaceuticals, growth in demand, and improvements in reimbursement will all contribute to the financial viability of this imaging technique.

Activity-based costing evaluation of [18F]-fludeoxyglucose production

International Nuclear Information System (INIS)

Krug, Bruno; Pirson, Anne-Sophie; Borght, Thierry vander; Zanten, Annie van; Crott, Ralph

2008-01-01

As healthcare expenses are escalating in many countries, the sector faces a new challenge of becoming more cost efficient. There is an urgent need for more accurate data on the costs of healthcare procedures. The cost of Positron Emission Tomography (PET) with [ 18 F]-fludeoxyglucose ( 18 F-FDG) studies is mainly influenced by the price of the radiopharmaceutical, which may vary throughout Europe from 300 to 500 Euro per patient dose (370 MBq). The aim of the current study is to conduct an activity-based costing (ABC) estimation of 18 F-FDG production in Europe to better identify the different cost components and to analyse their relative contribution to the total cost. Financial data were collected on capital expense and global operating costs through interviews with industry experts, PET centre managers, evaluation of prior studies, and review of expenses incurred at the University Medical Centre in Groningen (The Netherlands). After mapping the activities, we divided the cost in five categories: wage, equipment, consumables, overhead and space costs. A sensitivity analysis was performed for key cost components, including the compliance with regulatory requirements. The critical factor for profitability was throughput. Including the European regulation procedure, the cost for 370 MBq 18 F-FDG patient dose, 3 h EOS without delivery cost, ranges between 155 and 177 Euro/dose for two production runs and between 210 and 237 Euro/dose for one production run. These costs are predominantly determined by personnel and equipment costs, although the cost for quality assurance increases steadily. The ABC analysis provides significant insight into the production cost components of 18 F-FDG through different operating configurations. Reductions in equipment prices, increased availability of radiopharmaceuticals, growth in demand, and improvements in reimbursement will all contribute to the financial viability of this imaging technique. (orig.)

Break-Even Cost for Residential Solar Water Heating in the United States: Key Drivers and Sensitivities

Energy Technology Data Exchange (ETDEWEB)

Cassard, H.; Denholm, P.; Ong, S.

2011-02-01

This paper examines the break-even cost for residential rooftop solar water heating (SWH) technology, defined as the point where the cost of the energy saved with a SWH system equals the cost of a conventional heating fuel purchased from the grid (either electricity or natural gas). We examine the break-even cost for the largest 1,000 electric and natural gas utilities serving residential customers in the United States as of 2008. Currently, the break-even cost of SWH in the United States varies by more than a factor of five for both electricity and natural gas, despite a much smaller variation in the amount of energy saved by the systems (a factor of approximately one and a half). The break-even price for natural gas is lower than that for electricity due to a lower fuel cost. We also consider the relationship between SWH price and solar fraction and examine the key drivers behind break-even costs. Overall, the key drivers of the break-even cost of SWH are a combination of fuel price, local incentives, and technical factors including the solar resource location, system size, and hot water draw.

Penerapan Sistem ABC (Activity Based Costing System) Sebagai Alternatif Dasar Pembebanan Biaya Overhead Pabrik (Studi Kasus Pada PT. Wonojati Wijoyo Kediri Jawa Timur)”

OpenAIRE

Ahmad Putri, Dian Rahmawati; Saifi, Muhammad; Hidayat, Raden Rustam

2016-01-01

The purpose of this study to determine the company's factory overhead charges and to find out the imposition of factory overhead costs using ABC System (Activity Based Costing System).This type of research used in this research is descriptive case study approach. ABC System (Activity Based Costing System) is a way to replace the traditional cost accounting methods have many disadvantages in determining overhead costs ,because in the application of the ABC System (Activity Based Costing System...

THE APPLICATION OF ACTIVITY BASED COSTING ARE: ELIMINATION IN THE CALCULATION OF COST OF PRODUCTION PT SEMEN TONASA (PERSERO, PANGKEP REGENCY

Directory of Open Access Journals (Sweden)

Firman Menne

2013-07-01

Full Text Available Economic conditions should be viewed as the catalyst for developing the ability to intelligently manage resources so that the people of Indonesia can be out of the condition. Effective management and efficiency is reflected in good planning and good planning requires good information. In order to plan well the utilization of company resources to fold the duplicate spiders, company management requires system information revealed by clearly and precisely the facts relating to the activity. PT Semen Tonasa is a fabrication company doing business in the field of cement industry and produces two types of cement, cement or Portland cement type 1 can (OPC and Portland cement (PPC Pazzolan. The benefits that can be gained if the company implemented the system of Activity-Based Costing are: elimination is obtained more accurate information, among others, to improve the quality of decision making. In the ABC product only burdened costs of resources and activities that are used and does not burdened by the cost of the resources and activities. This method causes the cost per unit of a more stable and consistent with the purposes of the imposition of costs to the product result in activity.

COSTS CALCULATION OF TARGET COSTING METHOD

Directory of Open Access Journals (Sweden)

Sebastian UNGUREANU

2014-06-01

Full Text Available Cost information system plays an important role in every organization in the decision making process. An important task of management is ensuring control of the operations, processes, sectors, and not ultimately on costs. Although in achieving the objectives of an organization compete more control systems (production control, quality control, etc., the cost information system is important because monitors results of the other. Detailed analysis of costs, production cost calculation, quantification of losses, estimate the work efficiency provides a solid basis for financial control. Knowledge of the costs is a decisive factor in taking decisions and planning future activities. Managers are concerned about the costs that will appear in the future, their level underpinning the supply and production decisions as well as price policy. An important factor is the efficiency of cost information system in such a way that the information provided by it may be useful for decisions and planning of the work.

Cost Accounting System for fusion studies

International Nuclear Information System (INIS)

Hamilton, W.R.; Keeton, D.C.; Thomson, S.L.

1985-12-01

A Cost Accounting System that is applicable to all magnetic fusion reactor design studies has been developed. This system provides: (1) definitions of the elements of cost and methods for the combination of these elements to form a cost estimate; (2) a Code of Accounts that uses a functional arrangement for identification of the plant components; and (3) definitions and methods to analyze actual cost data so that the data can be directly reported into this Cost Accounting System. The purpose of the Cost Accounting System is to provide the structure for the development of a fusion cost data base and for the development of validated cost estimating procedures. This system has been developed through use at the Fusion Engineering Design Center (FEDC) and has been applied to different confinement concepts (tokamaks and tandem mirrors) and to different types of projects (experimental devices and commercial power plants). The use of this Cost Accounting System by all magnetic fusion projects will promote the development of a common cost data base, allow the direct comparison of cost estimates, and ultimately establish the cost credibility of the program

Cost Accounting System for fusion studies

Energy Technology Data Exchange (ETDEWEB)

Hamilton, W.R.; Keeton, D.C.; Thomson, S.L.

1985-12-01

A Cost Accounting System that is applicable to all magnetic fusion reactor design studies has been developed. This system provides: (1) definitions of the elements of cost and methods for the combination of these elements to form a cost estimate; (2) a Code of Accounts that uses a functional arrangement for identification of the plant components; and (3) definitions and methods to analyze actual cost data so that the data can be directly reported into this Cost Accounting System. The purpose of the Cost Accounting System is to provide the structure for the development of a fusion cost data base and for the development of validated cost estimating procedures. This system has been developed through use at the Fusion Engineering Design Center (FEDC) and has been applied to different confinement concepts (tokamaks and tandem mirrors) and to different types of projects (experimental devices and commercial power plants). The use of this Cost Accounting System by all magnetic fusion projects will promote the development of a common cost data base, allow the direct comparison of cost estimates, and ultimately establish the cost credibility of the program.

Adoption of an activity based costing model in an Indian steel plant

Directory of Open Access Journals (Sweden)

Rishi Dwivedi

2016-10-01

Full Text Available In the age of relentless global competition, constantly improving technology and better information systems, managers are often compelled to devise new strategies to maintain sustained competitive advantage while adopting new business management approaches. So, in this paper, an activity based costing (ABC model is proposed for a raw material handling section of an Indian steel plant. The results obtained from ABC model application in the said department facilitates quantification of the unit cost of each process, analysis of various activities in order to identify inefficiency, setting-up of better budget allocation, initiation of cost minimization procedure and establishment of an efficient resource requirement plan. Moreover, the cost information derived from ABC model is compared with that extracted from the traditional costing system to demonstrate that ABC model can significantly minimize the product cost distortion resulting from unsystematic allocation of overhead costs. This paper also discusses the practical implication of the implemented ABC model with respect to its critical role in effective resource control, improved strategic and operational decision making, and aid in continuous improvement through internal cost minimization in the department.

Cost of photovoltaic energy systems as determined by balance-of-system costs

Science.gov (United States)

Rosenblum, L.

1978-01-01

The effect of the balance-of-system (BOS), i.e., the total system less the modules, on photo-voltaic energy system costs is discussed for multikilowatt, flat-plate systems. Present BOS costs are in the range of 10 to 16 dollars per peak watt (1978 dollars). BOS costs represent approximately 50% of total system cost. The possibility of future BOS cost reduction is examined. It is concluded that, given the nature of BOS costs and the lack of comprehensive national effort focussed on cost reduction, it is unlikely that BOS costs will decline greatly in the next several years. This prognosis is contrasted with the expectations of the Department of Energy National Photovoltaic Program goals and pending legislation in the Congress which require a BOS cost reduction of an order of magnitude or more by the mid-1980s.

Activity-Based Costing in the After Press Services Industry

Science.gov (United States)

Shevasuthisilp, Suntichai; Punsathitwong, Kosum

2009-10-01

This research was conducted to apply activity-based costing (ABC) in an after press service company in Chiang Mai province, Thailand. The company produces all of its products by one-stop service (such as coating, stitching, binding, die cutting, and gluing). All products are made to order, and have different sizes and patterns. A strategy of low price is used to compete in the marketplace. After cost analysis, the study found that the company has high overhead (36.5% of total cost). The company's problem is its use of traditional cost accounting, which has low accuracy in assigning overhead costs. If management uses this information when pricing customer orders, losses may occur because real production costs may be higher than the selling price. Therefore, the application of ABC in cost analysis can help executives receive accurate cost information; establish a sound pricing strategy; and improve the manufacturing process by determining work activities which have excessively high production costs. According to this research, 6 out of 56 items had a production cost higher than the selling price, leading to losses of 123,923 baht per year. Methods used to solve this problem were: reducing production costs; establishing suitable prices; and creating a sales promotion with lower prices for customers whose orders include processes involving unused capacity. These actions will increase overall sales of the company, and allow more efficient use of its machinery.

A modified earned value management using activity based costing

Directory of Open Access Journals (Sweden)

Vahid Aminian

2016-12-01

Full Text Available Earned Value Management (EVM has been a well-known methodology used since the 1960s when the US department of defense proposed a standard method to measure project perfor-mance. This system relies on a set of often straightforward metrics to measure and evaluate the general health of a project. These metrics serve as early warning signals to timely detect project problems, or to exploit project opportunities. A key aspect of EVM is to estimate the completion cost of a project by considering both cost and schedule performance indices. However, good performance of cost and schedule performance indices does not necessarily guarantee cost effec-tiveness of the project regardless of the overhead costs. The reason is because, in most project-based organizations, overhead costs constitute a significant proportion of the total costs. Howev-er, EVM indices are usually calculated in the absence of the so-called overhead costs. This paper, first, seeks to remedy this problem by proposing a practical procedure of allocating overhead costs in project-based organizations. Then the traditional EVM indices are revised by consider-ing the allocated overhead costs. Finally, a case study demonstrates the applicability of the pro-posed method for a real-life project.

Impacts of nuclear fuel cycle costs on nuclear power generating costs

International Nuclear Information System (INIS)

Bertel, E.; Naudet, G.

1989-01-01

Fuel cycle costs are one of the main parameters to evaluate the competitiveness of various nuclear strategies. The historical analysis based on the French case shows the good performances yet achieved in mastering elementary costs in order to limit global fuel cycle cost escalation. Two contrasted theoretical scenarios of costs evolution in the middle and long term have been determined, based upon market analysis and technological improvements expected. They are used to calculate the global fuel cycle costs for various fuel management options and for three strategies of nuclear deployment. The results illustrate the stability of the expected fuel cycle costs over the long term, to be compared to the high incertainty prevailing for fossil fueled plants. The economic advantages of advanced technologies such as MOX fueled PWRs are underlined

Penerapan Activity-based Costing System Untuk Menentukan Harga Pokok Produksi PT. Celebes Mina Pratama

OpenAIRE

Rahmaji, Danang

2013-01-01

PT. Celebes Mina Pratama yang selama ini masih menggunakan Sistem Tradisional dengan metode Full Costing mempunyai aset tetap Rp.7.127.242.784 dari total aset Rp.13.740.563.379. Activity-Based Costing System mampu memberikan perhitungan Harga Pokok Produksi yang lebih akurat. Penelitian ini mempunyai tiga tujuan utama. Pertama, bertujuan untuk mengetahui perhitungan Harga Pokok Produksi dengan metode tradisional yang digunakan oleh Perusahaan. Kedua, untuk mengetahui perhitungan Harga Pokok P...

Intelligent transport systems deployment in Thessaloniki: Assessment of costs and benefits

Directory of Open Access Journals (Sweden)

Mitsakis Evangelos

2015-01-01

Full Text Available Transportation projects often require large initial investments and are expected to generate benefits extending far into the future. Thus, there is a need to compare benefits and costs that occur at different periods over time. Since money has a time value, the same amount of money at different time periods does not have the same value. Therefore, it is important to convert costs and benefits into equivalent values when conducting a Cost-Benefit Analysis (CBA. A special category of transportation projects is that of Intelligent Transport Systems (ITS. ITS comprise innovative solutions for travel demand and traffic management, and it is expected to play a key role in future sustainable urban development plans. Compared to other transportation projects, ITS have a lower initial investment. In this paper a framework based on a CBA is presented, assessing costs and benefits of three ITS projects implemented in Thessaloniki, Greece. The paper refers to future developments of ITS in the city of Thessaloniki. The examined systems have already been developed as demonstration systems in various regions throughout Europe. The benefits of the systems have been transferred and scaled up, so as to be in line with the specific characteristics of the Greek environment.

Defining the Costs of Reusable Flexible Ureteroscope Reprocessing Using Time-Driven Activity-Based Costing.

Science.gov (United States)

Isaacson, Dylan; Ahmad, Tessnim; Metzler, Ian; Tzou, David T; Taguchi, Kazumi; Usawachintachit, Manint; Zetumer, Samuel; Sherer, Benjamin; Stoller, Marshall; Chi, Thomas

2017-10-01

Careful decontamination and sterilization of reusable flexible ureteroscopes used in ureterorenoscopy cases prevent the spread of infectious pathogens to patients and technicians. However, inefficient reprocessing and unavailability of ureteroscopes sent out for repair can contribute to expensive operating room (OR) delays. Time-driven activity-based costing (TDABC) was applied to describe the time and costs involved in reprocessing. Direct observation and timing were performed for all steps in reprocessing of reusable flexible ureteroscopes following operative procedures. Estimated times needed for each step by which damaged ureteroscopes identified during reprocessing are sent for repair were characterized through interviews with purchasing analyst staff. Process maps were created for reprocessing and repair detailing individual step times and their variances. Cost data for labor and disposables used were applied to calculate per minute and average step costs. Ten ureteroscopes were followed through reprocessing. Process mapping for ureteroscope reprocessing averaged 229.0 ± 74.4 minutes, whereas sending a ureteroscope for repair required an estimated 143 minutes per repair. Most steps demonstrated low variance between timed observations. Ureteroscope drying was the longest and highest variance step at 126.5 ± 55.7 minutes and was highly dependent on manual air flushing through the ureteroscope working channel and ureteroscope positioning in the drying cabinet. Total costs for reprocessing totaled $96.13 per episode, including the cost of labor and disposable items. Utilizing TDABC delineates the full spectrum of costs associated with ureteroscope reprocessing and identifies areas for process improvement to drive value-based care. At our institution, ureteroscope drying was one clearly identified target area. Implementing training in ureteroscope drying technique could save up to 2 hours per reprocessing event, potentially preventing expensive OR delays.

Managerial accounting of costs in the system of management of enterprise logistics activity

Directory of Open Access Journals (Sweden)

L.G. Medvid

2017-12-01

Full Text Available The article deals with the analysis of scientific researches about the reflection of the logistics activity costs of a production enterprise in the system of analytical accounting. Practice shows that it is difficult to separate the reflection of logistics costs in primary documents in the system of financial accounting, and, as a result, the reflection in managerial reporting and the possibility of control and optimization. The research allows to determine the components of the organizational and methodical model of accounting of logistics costs according to the responsibility centers of production enterprises, namely, the system of responsibility centers according to the enterprise logistics activity, regulated documents, the system of budgetary logistics costs and internal managerial reporting according to the responsibility centers of the second level. This allowed to develop the methodological and organizational bases of managerial accounting of logistics activity costs of a productive enterprise.

Dashboard auditing of ABC (Activity-Based Costing). Theoretical approaches

OpenAIRE

Căpuşneanu, Sorinel/I

2009-01-01

This article aims to define the dashboard auditing according to the specifics of Activity-Based Costing method (ABC). It describes the main objectives of dashboard auditing, the criteria that a dashboard auditor should meet and the step-by-step stages of the entire dashboard auditing process of an enterprise from steel industry according to the Activity-Based Costing method (ABC).

How can activity-based costing methodology be performed as a powerful tool to calculate costs and secure appropriate patient care?

Science.gov (United States)

Lin, Blossom Yen-Ju; Chao, Te-Hsin; Yao, Yuh; Tu, Shu-Min; Wu, Chun-Ching; Chern, Jin-Yuan; Chao, Shiu-Hsiung; Shaw, Keh-Yuong

2007-04-01

Previous studies have shown the advantages of using activity-based costing (ABC) methodology in the health care industry. The potential values of ABC methodology in health care are derived from the more accurate cost calculation compared to the traditional step-down costing, and the potentials to evaluate quality or effectiveness of health care based on health care activities. This project used ABC methodology to profile the cost structure of inpatients with surgical procedures at the Department of Colorectal Surgery in a public teaching hospital, and to identify the missing or inappropriate clinical procedures. We found that ABC methodology was able to accurately calculate costs and to identify several missing pre- and post-surgical nursing education activities in the course of treatment.

Costing systems design for sustainability

Directory of Open Access Journals (Sweden)

Mihaela TURTUREA

2013-10-01

Full Text Available The aim of this article is to present an overall image of the way Accounting responds to nowadays user’s needs in relation to the quantification of the impact companies have towards the environment. Regarding this, there have been analyzed concepts like sustainable development, environmental accounting, environmental costs and there have been presented the main progress towards environmental cost identification and measurement from the perspective of Activity Based Costing system. To provide an overall image of this concepts, there have been used as research methodology methods the documentation from literature review, analysis, synthesis and comparison.

THE IMPLEMENTATION OF ACTIVITY-BASED COSTING METHOD IN DETERMINING SELLING PRICES

Directory of Open Access Journals (Sweden)

Muhtarudin Muhtarudin

2017-08-01

Full Text Available Abstrak. Penelitian ini bertujuan untuk mengetahui  perbedaan perhitungan antara Harga Pokok Produksi  Sepatu  menggunakan metode tradisional  dengan  metode Activity-Based Costing.  Penelitian dilakukan pada 5 industri Sepatu di Sentra Industri Sepatu Cibaduyut Kota Bandung dengan metode pengumpulan data menggunakan teknik observasi, wawancara, dan dokumentasi. Jumlah populasi sebanyak 76 industri dan metode penentuan sampel menggunakan teknik purposive sampling. Teknik analisis yang digunakan dalam penelitian ini adalah analisis beda dua rata-rata.  Hasil dari penelitian ini menunjukkan bahwa terdapat perbedaan yang signifikan antara Harga Pokok Produkasi sepatu metode tradisional dengan  Activity-Based Costing.  Setelah menerapkan metode penentuan biaya dengan metode tersebut, Harga Pokok Produkasi adanya perbedaan  yang cukup signifikan sehingga penentuan harga jual yang salah. Karena menetapkan harga jual dengan melakukan mark-up  untuk menutupi biaya produksi.  Penentuan harga jual dengan cara ini menyebabkan harga jual yang terlalu rendah, sehingga tidak dapat mengoptimalkan laba Kata Kunci.  Activity-Based Costing; Harga Pokok Produksi; Harga Jual.   Abstract. This study aims to find out the difference between the calculation of shoe production cost using the traditional method as compared to that using the Activity-Based Costing method. The research was conducted on five shoe industries in the Shoes Industry Center in Cibaduyut Bandung, using such data collecting method as observation, interview, and documentation studies. The population comprises of 76 industries, and the method used for determining the sample is purposive sampling technique. The analytical technique used in this study is the analysis of two different averages. The results of this study indicate that there is a significant difference between the shoe production cost calculated using the traditional method and that calculated using the Activity-Based

Should solar photovoltaics be deployed sooner because of long operating life at low, predictable cost?

International Nuclear Information System (INIS)

Zweibel, Ken

2010-01-01

Governments subsidize the deployment of solar photovoltaics (PV) because PV is deployed for societal purposes. About seven thousand megawatts were deployed in 2009 and over 10,000 are expected in 2010. Yet this is too slow to strongly affect energy and environmental challenges. Faster societal deployment is slowed because PV is perceived to be too costly. Classic economic evaluations would put PV electricity in the range of 15-50 c/kWh, depending on local sunlight and system size. But PV has an unusual, overlooked value: systems can last for a very long time with almost no operating costs, much like, e.g., the Hoover Dam. This long life is rarely taken into account. The private sector cannot use it because far-future cash flow does not add to asset value. But we should not be evaluating PV by business metrics. Governments already make up the difference in return on investment needed to deploy PV. PV deployment is government infrastructure development or direct purchases. Thus the question is: Does the usually unevaluated aspect of long life at predictably low operating costs further motivate governments to deploy more PV, sooner?

Activity-based costs of blood transfusions in surgical patients at four hospitals.

Science.gov (United States)

Shander, Aryeh; Hofmann, Axel; Ozawa, Sherri; Theusinger, Oliver M; Gombotz, Hans; Spahn, Donat R

2010-04-01

Blood utilization has long been suspected to consume more health care resources than previously reported. Incomplete accounting for blood costs has the potential to misdirect programmatic decision making by health care systems. Determining the cost of supplying patients with blood transfusions requires an in-depth examination of the complex array of activities surrounding the decision to transfuse. To accurately determine the cost of blood in a surgical population from a health system perspective, an activity-based costing (ABC) model was constructed. Tasks and resource consumption (materials, labor, third-party services, capital) related to blood administration were identified prospectively at two US and two European hospitals. Process frequency (i.e., usage) data were captured retrospectively from each hospital and used to populate the ABC model. All major process steps, staff, and consumables to provide red blood cell (RBC) transfusions to surgical patients, including usage frequencies, and direct and indirect overhead costs contributed to per-RBC-unit costs between $522 and $1183 (mean, $761 +/- $294). These exceed previously reported estimates and were 3.2- to 4.8-fold higher than blood product acquisition costs. Annual expenditures on blood and transfusion-related activities, limited to surgical patients, ranged from $1.62 to $6.03 million per hospital and were largely related to the transfusion rate. Applicable to various hospital practices, the ABC model confirms that blood costs have been underestimated and that they are geographically variable and identifies opportunities for cost containment. Studies to determine whether more stringent control of blood utilization improves health care utilization and quality, and further reduces costs, are warranted.

Activity Based Costings anvendelse til beslutningstagen

DEFF Research Database (Denmark)

Nielsen, Steen; Melander, Preben; Jakobsen, Morten

2007-01-01

Activity-Based Costing (ABC) er stadig ét af mest omtalte "moderne" økonomistyringsværktøjer såvel blandt private virksomheder af undersøgelsen, som i offentlige organisationer. En ny state-of-the-art undersøgelse af 90 mellemstore og større danske fremstillingsvirksomheder blev gennemført i 2003...... relation til de fremtidige muligheder, herunder en cost/benefit betragtning ved implementering af ABC. Vi har tilføjet en del kvalitative kommentarer, som respondenterne har tilføjet. Disse er vigtige i forhold til en forståelse for, hvorfor eller hvorfor ikke ABC anvendes. Til sidst perspektiveres også...

ACTIVITY-BASED COSTING IN THE MANUFACTURING SECTOR: A MANAGERIAL INSTRUMENT FOR DECISION-MAKING

Directory of Open Access Journals (Sweden)

Ioana D. BUFAN

2014-04-01

Full Text Available The aim of this paper is to emphasize the importance of using the activity-based costing (management system in the manufacturing sector. The utility of the ABC (ABM system concerns decisions taken at a strategic and operational level. In our country, few managers understand the need for such a system and many Romanian companies use only a traditional costing system or don’t use one at all. The paper also includes a case study which is a small example of using the ABC method in a Romanian manufacturing company. The study shows that the ABC/ABM system helps managers to properly manage indirect costs (by activities and understand the profitability of products, distribution channels and customers. Therefore, it offers a powerful instrument for decision-making. Although ABC is a new system of cost calculation that is absolutely necessary, in most cases the ABC method must be implemented in addition to the traditional costing systems, which are essential for the purposes of management accounting.

Time-driven activity-based costing of low-dose-rate and high-dose-rate brachytherapy for low-risk prostate cancer.

Science.gov (United States)

Ilg, Annette M; Laviana, Aaron A; Kamrava, Mitchell; Veruttipong, Darlene; Steinberg, Michael; Park, Sang-June; Burke, Michael A; Niedzwiecki, Douglas; Kupelian, Patrick A; Saigal, Christopher

Cost estimates through traditional hospital accounting systems are often arbitrary and ambiguous. We used time-driven activity-based costing (TDABC) to determine the true cost of low-dose-rate (LDR) and high-dose-rate (HDR) brachytherapy for prostate cancer and demonstrate opportunities for cost containment at an academic referral center. We implemented TDABC for patients treated with I-125, preplanned LDR and computed tomography based HDR brachytherapy with two implants from initial consultation through 12-month followup. We constructed detailed process maps for provision of both HDR and LDR. Personnel, space, equipment, and material costs of each step were identified and used to derive capacity cost rates, defined as price per minute. Each capacity cost rate was then multiplied by the relevant process time and products were summed to determine total cost of care. The calculated cost to deliver HDR was greater than LDR by $2,668.86 ($9,538 vs. $6,869). The first and second HDR treatment day cost $3,999.67 and $3,955.67, whereas LDR was delivered on one treatment day and cost $3,887.55. The greatest overall cost driver for both LDR and HDR was personnel at 65.6% ($4,506.82) and 67.0% ($6,387.27) of the total cost. After personnel costs, disposable materials contributed the second most for LDR ($1,920.66, 28.0%) and for HDR ($2,295.94, 24.0%). With TDABC, the true costs to deliver LDR and HDR from the health system perspective were derived. Analysis by physicians and hospital administrators regarding the cost of care afforded redesign opportunities including delivering HDR as one implant. Our work underscores the need to assess clinical outcomes to understand the true difference in value between these modalities. Copyright © 2016 American Brachytherapy Society. Published by Elsevier Inc. All rights reserved.

Cost-identification analysis of total laryngectomy: an itemized approach to hospital costs.

Science.gov (United States)

Dedhia, Raj C; Smith, Kenneth J; Weissfeld, Joel L; Saul, Melissa I; Lee, Steve C; Myers, Eugene N; Johnson, Jonas T

2011-02-01

To understand the contribution of intraoperative and postoperative hospital costs to total hospital costs, examine the costs associated with specific hospital services in the postoperative period, and recognize the impact of patient factors on hospital costs. Case series with chart review. Large tertiary care teaching hospital system. Using the Pittsburgh Head and Neck Organ-Specific Database, 119 patients were identified as having total laryngectomy with bilateral selective neck dissection and primary closure from 1999 to 2009. Cost data were obtained for 112 patients. Costs include fixed and variable costs, adjusted to 2010 US dollars using the Consumer Price Index. Mean total hospital costs were $29,563 (range, $10,915 to $120,345). Operating room costs averaged 24% of total hospital costs, whereas room charges, respiratory therapy, laboratory, pharmacy, and radiology accounted for 38%, 14%, 8%, 7%, and 3%, respectively. Median length of stay was 9 days (range, 6-43), and median Charlson comorbidity index score was 8 (2-16). Patients with ≥1 day in the intensive care unit had significantly higher hospital costs ($46,831 vs $24,601, P cost differences with stratification based on previous radiation therapy ($27,598 vs $29,915 with no prior radiation, P = .62) or hospital readmission within 30 days ($29,483 vs $29,609 without readmission, P = .97). This is one of few studies in surgery and the first in otolaryngology to analyze hospital costs for a relatively standardized procedure. Further work will include cost analysis from multiple centers with investigation of global cost drivers.

Characterization and Deployment Studies and Cost Analysis of Seawater Uranium Recovered by a Polymeric Adsorbent System

International Nuclear Information System (INIS)

Schneider, Erich; Gill, Gary

2014-01-01

Conclusions: • The cost and EROI analysis suggest a number of R&D directions aimed at high-leverage contributors to the U production cost or reducing uncertainty: • Capacity, durability and stability are the key cost drivers: – Complementary R&D areas include design of selective and durable ligands and adsorbents, as well as gentler U stripping procedures. • Experimentation is defining minimum requirements for cost driving chemicals and improve recyclability or identify substitutes for the most costly; • Novel elution strategies have great potential to increase durability and reusability; • Textile physical properties (fiber diameter, shape, surface area to volume ratio) continue to be optimized to improve performance and fabrication cost; • Marine tests and kinetics modeling continue to improve our understanding of the time, temperature and flow velocity dependence of adsorption rate

THE COST OF PRODUCTION UNDER DIRECT COSTING AND ABSORPTION COSTING – A COMPARATIVE APPROACH

Directory of Open Access Journals (Sweden)

Bunea-Bontaş Cristina Aurora

2013-04-01

Full Text Available Managerial accounting has an important role in strategic management of a company, being designed especially for managers, in order to optimise their decision regarding operating activities. One of the objectives of managerial accounting is the cost calculation, for measuring inventory costs, and the costs and profitability of products and services. Cost calculation systems can vary in terms of which costs are assigned to cost objects, two significant calculation systems being adopted by the costing theory: full cost accounting, which includes all costs of production as product costs, and partial cost accounting, which includes only those costs that vary with output. This article provides a comparative approach regarding the differences between the calculation of the cost of production under direct costing and absorption costing. It also examines the implication of using each of these calculation systems on the financial position and financial performance of the companies reported on the statement of financial position and the income statement. Finally, the advantages of using direct costing for internal reporting are discussed, considering that this method is not acceptable for external reporting to stockholders and other external users.

Investing in innovation: trade-offs in the costs and cost-efficiency of school feeding using community-based kitchens in Bangladesh.

Science.gov (United States)

Gelli, Aulo; Suwa, Yuko

2014-09-01

School feeding programs have been a key response to the recent food and economic crises and function to some degree in nearly every country in the world. However, school feeding programs are complex and exhibit different, context-specific models or configurations. To examine the trade-offs, including the costs and cost-efficiency, of an innovative cluster kitchen implementation model in Bangladesh using a standardized framework. A supply chain framework based on international standards was used to provide benchmarks for meaningful comparisons across models. Implementation processes specific to the program in Bangladesh were mapped against this reference to provide a basis for standardized performance measures. Qualitative and quantitative data on key metrics were collected retrospectively using semistructured questionnaires following an ingredients approach, including both financial and economic costs. Costs were standardized to a 200-feeding-day year and 700 kcal daily. The cluster kitchen model had similarities with the semidecentralized model and outsourced models in the literature, the main differences involving implementation scale, scale of purchasing volumes, and frequency of purchasing. Two important features stand out in terms of implementation: the nutritional quality of meals and the level of community involvement. The standardized full cost per child per year was US$110. Despite the nutritious content of the meals, the overall cost-efficiency in cost per nutrient output was lower than the benchmark for centralized programs, due mainly to support and start-up costs. Cluster kitchens provide an example of an innovative implementation model, combining an emphasis on quality meal delivery with strong community engagement. However, the standardized costs-per child were above the average benchmarks for both low-and middle-income countries. In contrast to the existing benchmark data from mature, centralized models, the main cost drivers of the program were

Activity-based Costing (ABC and Activity-based Management(ABMImplementation – Is This the Solution for Organizations to Gain Profitability?

Directory of Open Access Journals (Sweden)

Ildikó Réka CARDOS

2011-06-01

Full Text Available Adherents of ABC/ABM systems claimed traditional management accounting systems generated misleading costs in a contemporary, tumultuous, often changing business environment and implementing ABC/ABM would remedy this. That is why activity-based costing (ABC and activity-based management (ABM represents the symbol of improved competitiveness and efficiency in every organization.The purpose of this article – after analyzing the existing literature in the field – is to emphasize that new cost systems such as ABC and ABM could be a strong couple that assures competitiveness and efficiency for each company. Another objective is to present that, besides its disadvantages, firms implement the ABC/ABM system because it permits better tracing of costs to objects, superior allocation of overheads to cost objects, financial and non-financial analysis and measures useful to managers and management accountants in the decision-making process.

Cost-based droop scheme with lower generation costs for microgrids

DEFF Research Database (Denmark)

Nutkani, I. U.; Loh, Poh Chiang; Blaabjerg, Frede

2013-01-01

on the DG kVA ratings. Other operating characteristics like generation costs, efficiencies and emission penalties at different loadings have not been considered. This makes existing droop schemes not too well-suited for standalone microgrids without central management system, where different types of DGs...... usually exist. As an alternative, this paper proposes a cost-based droop scheme, whose objective is to reduce a generation cost realized with various DG operating characteristics taken into consideration. The proposed droop scheme therefore retains all advantages of the traditional droop schemes, while...... at the same time keep its generation cost low. These findings have been validated through simulation and scaled down lab experiment....

Eliciting road traffic injuries cost among Iranian drivers' public vehicles using willingness to pay method.

Science.gov (United States)

Ainy, Elaheh; Soori, Hamid; Ganjali, Mojtaba; Baghfalaki, Taban

2015-01-01

To allocate resources at the national level and ensure the safety level of roads with the aim of economic efficiency, cost calculation can help determine the size of the problem and demonstrate the economic benefits resulting from preventing such injuries. This study was carried out to elicit the cost of traffic injuries among Iranian drivers of public vehicles. In a cross-sectional study, 410 drivers of public vehicles were randomly selected from all the drivers in city of Tehran, Iran. The research questionnaire was prepared based on the standard for willingness to pay (WTP) method (stated preference (SP), contingent value (CV), and revealed preference (RP) model). Data were collected along with a scenario for vehicle drivers. Inclusion criteria were having at least high school education and being in the age range of 18 to 65 years old. Final analysis of willingness to pay was carried out using Weibull model. Mean WTP was 3,337,130 IRR among drivers of public vehicles. Statistical value of life was estimated 118,222,552,601,648 IRR, for according to 4,694 dead drivers, which was equivalent to 3,940,751,753 $ based on the dollar free market rate of 30,000 IRR (purchase power parity). Injury cost was 108,376,366,437,500 IRR, equivalent to 3,612,545,548 $. In sum, injury and death cases came to 226,606,472,346,449 IRR, equivalent to 7,553,549,078 $. Moreover in 2013, cost of traffic injuries among the drivers of public vehicles constituted 1.25% of gross national income, which was 604,300,000,000$. WTP had a significant relationship with gender, daily payment, more payment for time reduction, more pay to less traffic, and minibus drivers. Cost of traffic injuries among drivers of public vehicles included 1.25% of gross national income, which was noticeable; minibus drivers had less perception of risk reduction than others.

Computerized cost estimation spreadsheet and cost data base for fusion devices

International Nuclear Information System (INIS)

Hamilton, W.R.; Rothe, K.E.

1985-01-01

An automated approach to performing and cataloging cost estimates has been developed at the Fusion Engineering Design Center (FEDC), wherein the cost estimate record is stored in the LOTUS 1-2-3 spreadsheet on an IBM personal computer. The cost estimation spreadsheet is based on the cost coefficient/cost algorithm approach and incorporates a detailed generic code of cost accounts for both tokamak and tandem mirror devices. Component design parameters (weight, surface area, etc.) and cost factors are input, and direct and indirect costs are calculated. The cost data base file derived from actual cost experience within the fusion community and refined to be compatible with the spreadsheet costing approach is a catalog of cost coefficients, algorithms, and component costs arranged into data modules corresponding to specific components and/or subsystems. Each data module contains engineering, equipment, and installation labor cost data for different configurations and types of the specific component or subsystem. This paper describes the assumptions, definitions, methodology, and architecture incorporated in the development of the cost estimation spreadsheet and cost data base, along with the type of input required and the output format

The Cost of Library Services: Activity-Based Costing in an Australian Academic Library.

Science.gov (United States)

Robinson, Peter; Ellis-Newman, Jennifer

1998-01-01

Explains activity-based costing (ABC), discusses the benefits of ABC to library managers, and describes the steps involved in implementing ABC in an Australian academic library. Discusses the budgeting process in universities, and considers benefits to the library. (Author/LRW)

Strategies to Improve Management of Acute Watery Diarrhea during a Military Deployment: A Cost Effectiveness Analysis.

Science.gov (United States)

Schrader, Andrew J; Tribble, David R; Riddle, Mark S

2017-12-01

To inform policy and decision makers, a cost-effectiveness model was developed to predict the cost-effectiveness of implementing two hypothetical management strategies separately and concurrently on the mitigation of deployment-associated travelers' diarrhea (TD) burden. The first management strategy aimed to increase the likelihood that a deployed service member with TD will seek medical care earlier in the disease course compared with current patterns; the second strategy aimed to optimize provider treatment practices through the implementation of a Department of Defense Clinical Practice Guideline. Outcome measures selected to compare management strategies were duty days lost averted (DDL-averted) and a cost effectiveness ratio (CER) of cost per DDL-averted (USD/DDL-averted). Increasing health care and by seeking it more often and earlier in the disease course as a stand-alone management strategy produced more DDL (worse) than the base case (up to 8,898 DDL-gained per year) at an increased cost to the Department of Defense (CER $193). Increasing provider use of an optimal evidence-based treatment algorithm through Clinical Practice Guidelines prevented 5,299 DDL per year with overall cost savings (CER -$74). A combination of both strategies produced the greatest gain in DDL-averted (6,887) with a modest cost increase (CER $118). The application of this model demonstrates that changes in TD management during deployment can be implemented to reduce DDL with likely favorable impacts on mission capability and individual health readiness. The hypothetical combination strategy evaluated prevents the most DDL compared with current practice and is associated with a modest cost increase.

Comprehensive cost analysis of sentinel node biopsy in solid head and neck tumors using a time-driven activity-based costing approach.

Science.gov (United States)

Crott, Ralph; Lawson, Georges; Nollevaux, Marie-Cécile; Castiaux, Annick; Krug, Bruno

2016-09-01

Head and neck cancer (HNC) is predominantly a locoregional disease. Sentinel lymph node (SLN) biopsy offers a minimally invasive means of accurately staging the neck. Value in healthcare is determined by both outcomes and the costs associated with achieving them. Time-driven activity-based costing (TDABC) may offer more precise estimates of the true cost. Process maps were developed for nuclear medicine, operating room and pathology care phases. TDABC estimates the costs by combining information about the process with the unit cost of each resource used. Resource utilization is based on observation of care and staff interviews. Unit costs are calculated as a capacity cost rate, measured as a Euros/min (2014), for each resource consumed. Multiplying together the unit costs and resource quantities and summing across all resources used will produce the average cost for each phase of care. Three time equations with six different scenarios were modeled based on the type of camera, the number of SLN and the type of staining used. Total times for different SLN scenarios vary between 284 and 307 min, respectively, with a total cost between 2794 and 3541€. The unit costs vary between 788€/h for the intraoperative evaluation with a gamma-probe and 889€/h for a preoperative imaging with a SPECT/CT. The unit costs for the lymphadenectomy and the pathological examination are, respectively, 560 and 713€/h. A 10 % increase of time per individual activity generates only 1 % change in the total cost. TDABC evaluates the cost of SLN in HNC. The total costs across all phases which varied between 2761 and 3744€ per standard case.

Cost Model for Digital Preservation: Cost of Digital Migration

Directory of Open Access Journals (Sweden)

Ulla Bøgvad Kejser

2011-03-01

Full Text Available The Danish Ministry of Culture has funded a project to set up a model for costing preservation of digital materials held by national cultural heritage institutions. The overall objective of the project was to increase cost effectiveness of digital preservation activities and to provide a basis for comparing and estimating future cost requirements for digital preservation. In this study we describe an activity-based costing methodology for digital preservation based on the Open Archice Information System (OAIS Reference Model. Within this framework, which we denote the Cost Model for Digital Preservation (CMDP, the focus is on costing the functional entity Preservation Planning from the OAIS and digital migration activities. In order to estimate these costs we have identified cost-critical activities by analysing the functions in the OAIS model and the flows between them. The analysis has been supplemented with findings from the literature, and our own knowledge and experience. The identified cost-critical activities have subsequently been deconstructed into measurable components, cost dependencies have been examined, and the resulting equations expressed in a spreadsheet. Currently the model can calculate the cost of different migration scenarios for a series of preservation formats for text, images, sound, video, geodata, and spreadsheets. In order to verify the model it has been tested on cost data from two different migration projects at the Danish National Archives (DNA. The study found that the OAIS model provides a sound overall framework for the cost breakdown, but that some functions need additional detailing in order to cost activities accurately. Running the two sets of empirical data showed among other things that the model underestimates the cost of manpower-intensive migration projects, while it reinstates an often underestimated cost, which is the cost of developing migration software. The model has proven useful for estimating the

The Launch Systems Operations Cost Model

Science.gov (United States)

Prince, Frank A.; Hamaker, Joseph W. (Technical Monitor)

2001-01-01

One of NASA's primary missions is to reduce the cost of access to space while simultaneously increasing safety. A key component, and one of the least understood, is the recurring operations and support cost for reusable launch systems. In order to predict these costs, NASA, under the leadership of the Independent Program Assessment Office (IPAO), has commissioned the development of a Launch Systems Operations Cost Model (LSOCM). LSOCM is a tool to predict the operations & support (O&S) cost of new and modified reusable (and partially reusable) launch systems. The requirements are to predict the non-recurring cost for the ground infrastructure and the recurring cost of maintaining that infrastructure, performing vehicle logistics, and performing the O&S actions to return the vehicle to flight. In addition, the model must estimate the time required to cycle the vehicle through all of the ground processing activities. The current version of LSOCM is an amalgamation of existing tools, leveraging our understanding of shuttle operations cost with a means of predicting how the maintenance burden will change as the vehicle becomes more aircraft like. The use of the Conceptual Operations Manpower Estimating Tool/Operations Cost Model (COMET/OCM) provides a solid point of departure based on shuttle and expendable launch vehicle (ELV) experience. The incorporation of the Reliability and Maintainability Analysis Tool (RMAT) as expressed by a set of response surface model equations gives a method for estimating how changing launch system characteristics affects cost and cycle time as compared to today's shuttle system. Plans are being made to improve the model. The development team will be spending the next few months devising a structured methodology that will enable verified and validated algorithms to give accurate cost estimates. To assist in this endeavor the LSOCM team is part of an Agency wide effort to combine resources with other cost and operations professionals to

A cost modelling system for cloud computing

OpenAIRE

Ajeh, Daniel; Ellman, Jeremy; Keogh, Shelagh

2014-01-01

An advance in technology unlocks new opportunities for organizations to increase their productivity, efficiency and process automation while reducing the cost of doing business as well. The emergence of cloud computing addresses these prospects through the provision of agile systems that are scalable, flexible and reliable as well as cost effective. Cloud computing has made hosting and deployment of computing resources cheaper and easier with no up-front charges but pay per-use flexible payme...

Computerized cost estimation spreadsheet and cost data base for fusion devices

International Nuclear Information System (INIS)

Hamilton, W.R.; Rothe, K.E.

1985-01-01

Component design parameters (weight, surface area, etc.) and cost factors are input and direct and indirect costs are calculated. The cost data base file derived from actual cost experience within the fusion community and refined to be compatible with the spreadsheet costing approach is a catalog of cost coefficients, algorithms, and component costs arranged into data modules corresponding to specific components and/or subsystems. Each data module contains engineering, equipment, and installation labor cost data for different configurations and types of the specific component or subsystem. This paper describes the assumptions, definitions, methodology, and architecture incorporated in the development of the cost estimation spreadsheet and cost data base, along with the type of input required and the output format

Activity-based Costing (ABC) and Activity-based Management(ABM)Implementation – Is This the Solution for Organizations to Gain Profitability?

OpenAIRE

Ildikó Réka CARDOS; Stefan PETE

2011-01-01

Adherents of ABC/ABM systems claimed traditional management accounting systems generated misleading costs in a contemporary, tumultuous, often changing business environment and implementing ABC/ABM would remedy this. That is why activity-based costing (ABC) and activity-based management (ABM) represents the symbol of improved competitiveness and efficiency in every organization.The purpose of this article – after analyzing the existing literature in the field – is to emphasize that new cost s...

Allocation base of general production costs as optimization of prime costs

Directory of Open Access Journals (Sweden)

Levytska I.O.

2017-03-01

Full Text Available Qualified management aimed at optimizing financial results is the key factor in today's society. Effective management decisions depend on the necessary information about the costs of production process in all its aspects – their structure, types, accounting policies of reflecting costs. General production costs, the so-called indirect costs that are not directly related to the production process, but provide its functioning in terms of supporting structural divisions and create the necessary conditions of production, play a significant role in calculating prime costs of goods (works, services. However, the accurate estimate of prime costs of goods (works, services should be determined with the value of indirect costs (in other words, general production costs, and properly determined with the base of their allocation. The choice of allocation base of general production costs is the significant moment, depending on the nature of business, which must guarantee fair distribution regarding to the largest share of direct expenses in the total structure of production costs. The study finds the essence of general production costs based on the analysis of key definitions of leading Ukrainian economists. The optimal allocation approach of general production costs is to calculate these costs as direct production costs within each subsidiary division (department separately without selecting a base as the main one to the their total amount.

A time-driven, activity-based costing methodology for determining the costs of red blood cell transfusion in patients with beta thalassaemia major.

Science.gov (United States)

Burns, K E; Haysom, H E; Higgins, A M; Waters, N; Tahiri, R; Rushford, K; Dunstan, T; Saxby, K; Kaplan, Z; Chunilal, S; McQuilten, Z K; Wood, E M

2018-04-10

To describe the methodology to estimate the total cost of administration of a single unit of red blood cells (RBC) in adults with beta thalassaemia major in an Australian specialist haemoglobinopathy centre. Beta thalassaemia major is a genetic disorder of haemoglobin associated with multiple end-organ complications and typically requiring lifelong RBC transfusion therapy. New therapeutic agents are becoming available based on advances in understanding of the disorder and its consequences. Assessment of the true total cost of transfusion, incorporating both product and activity costs, is required in order to evaluate the benefits and costs of these new therapies. We describe the bottom-up, time-driven, activity-based costing methodology used to develop process maps to provide a step-by-step outline of the entire transfusion pathway. Detailed flowcharts for each process are described. Direct observations and timing of the process maps document all activities, resources, staff, equipment and consumables in detail. The analysis will include costs associated with performing these processes, including resources and consumables. Sensitivity analyses will be performed to determine the impact of different staffing levels, timings and probabilities associated with performing different tasks. Thirty-one process maps have been developed, with over 600 individual activities requiring multiple timings. These will be used for future detailed cost analyses. Detailed process maps using bottom-up, time-driven, activity-based costing for determining the cost of RBC transfusion in thalassaemia major have been developed. These could be adapted for wider use to understand and compare the costs and complexities of transfusion in other settings. © 2018 British Blood Transfusion Society.

Systems/cost summary

International Nuclear Information System (INIS)

Grand, P.; Danby, G.; Keane, J.; Spiro, J.; Sutter, D.; Cole, F.; Hoyer, E.; Freytag, K.; Burke, R.

1977-01-01

The purpose of the meeting was to discuss and develop cost-estimating methods for heavy-ion fusion accelerator systems. The group did not consider that its purpose was to make technical judgements on proposed systems, but to develop methods for making reasonable cost estimates of these systems. Such estimates will, it is hoped, provide material for systems studies, will help in guiding research and development efforts by identifying ''high-leverage'' subsystems (areas that account for a significant part of total system cost and that might be reduced in cost by further technical development) and to begin to provide data to aid in an eventual decision on the optimum type of accelerator for heavy-ion fusion

Low-Cost Servomotor Driver for PFM Control.

Science.gov (United States)

Aragon-Jurado, David; Morgado-Estevez, Arturo; Perez-Peña, Fernando

2017-12-31

Servomotors have already been around for some decades and they are extremely popular among roboticists due to their simple control technique, reliability and low-cost. They are usually controlled by using Pulse Width Modulation (PWM) and this paper aims to keep the idea of simplicity and low-cost, while introducing a new control technique: Pulse Frequency Modulation (PFM). The objective of this paper is to focus on our development of a low-cost servomotor controller which will allow the research community to use them with PFM. A low-cost commercial servomotor is used as the base system for the development: a small PCB that fits inside the case and allocates all the electronic components to control the motor has been designed to replace the original. The potentiometer is retained as the feedback sensor and a microcontroller is responsible for controlling the position of the motor. The paper compares the performance of a PWM and a PFM controlled servomotor. The comparison shows that the servomotor with our controller achieves a faster mechanism for switching targets and a lower latency. This controller can be used with neuromorphic systems to remove the conversion from events to PWM.

Minimizing activated carbons production cost

International Nuclear Information System (INIS)

Stavropoulos, G.G.; Zabaniotou, A.A.

2009-01-01

A detailed economic evaluation of activated carbons production process from various raw materials is undertaken using the conventional economic indices (ROI, POT, and NPV). The fundamental factors that affect production cost were taken into account. It is concluded that for an attractive investment in activated carbons production one should select the raw material with the highest product yield, adopt a chemical activation production scheme and should base product price on product-surface area (or more generally on product adsorption capacity for the adsorbate in consideration). A raw material that well meets the above-mentioned criteria is petroleum coke but others are also promising (charcoals, and carbon black). Production cost then can be optimized by determining its minimum value of cost that results from the intercept between the curves of plant capacity and raw material cost - if any. Taking into account the complexity of such a techno-economic analysis, a useful suggestion could be to start the evaluations from a plant capacity corresponding to the break-even point, i. e. the capacity at which income equals production cost. (author)

The Role of Activity Based Costing (ABC) in Educational Support Services: A White Paper.

Science.gov (United States)

Edds, Daniel B.

Many front-line managers who are assuming more financial responsibility for their organizations find traditional cost accounting inadequate for their needs and are turning to Activity Based Costing (ABC). ABC is not a financial reporting system to serve the needs of regulatory agencies, but a tool that tracks costs from the general ledger…

Industrializing Offshore Wind Power with Serial Assembly and Lower-cost Deployment - Final Report

Energy Technology Data Exchange (ETDEWEB)

Kempton, Willett [Univ. of Delaware, Newark, DE (United States)

2017-12-11

A team of engineers and contractors has developed a method to move offshore wind installation toward lower cost, faster deployment, and lower environmental impact. A combination of methods, some incremental and some breaks from past practice, interact to yield multiple improvements. Three designs were evaluated based on detailed engineering: 1) a 5 MW turbine on a jacket with pin piles (base case), 2) a 10 MW turbine on a conventional jacket with pin piles, assembled at sea, and 3) a 10 MW turbine on tripod jacket with suction buckets (caissons) and with complete turbine assembly on-shore. The larger turbine, assembly ashore, and the use of suction buckets together substantially reduce capital cost of offshore wind projects. Notable capital cost reductions are: changing from 5 MW to 10 MW turbine, a 31% capital cost reduction, and assembly on land then single-piece install at sea an additional 9% capital cost reduction. An estimated Design 4) estimates further cost reduction when equipment and processes of Design 3) are optimized, rather than adapted to existing equipment and process. Cost of energy for each of the four Designs are also calculated, yielding approximately the same percentage reductions. The methods of Design 3) analyzed here include accepted structures such as suction buckets used in new ways, innovations conceived but previously without engineering and economic validation, combined with new methods not previously proposed. Analysis of Designs 2) and 3) are based on extensive engineering calculations and detailed cost estimates. All design methods can be done with existing equipment, including lift equipment, ports and ships (except that design 4 assumes a more optimized ship). The design team consists of experienced offshore structure designers, heavy lift engineers, wind turbine designers, vessel operators, and marine construction contractors. Comparing the methods based on criteria of cost and deployment speed, the study selected the third design

A Comparative Study of Activity-Based Costing vs. Current Pricing System for Pathology Examinations at Okmeydani Training and Research Hospital, Turkey

Directory of Open Access Journals (Sweden)

Enver YARIKKAYA

2017-01-01

Full Text Available Objective: To provide real cost data for pathology examinations by using activity-based costing method, in order to provide means to departments, health administrators and the social security institution to achieve improvements in financial planning, quality and cost control. Material and Method: The cost of the histopathological examinations, which were accepted by the Department of Pathology at Okmeydanı Training and Research Hospital during August 2014, was calculated using the activity-based costing method. The costs were compared with the amounts specified in the Healthcare Implementation Notification Tariff and the conventional volume-based costing. Results: Most pathology examinations listed within a given band in the Healthcare Implementation Notification Tariff show variations in unit costs. The study found that the costs of 77.4% of the examinations were higher than the prices listed in the Healthcare Implementation Notification Tariff. Conclusion: The pathology examination tariffs specified in the Healthcare Implementation Notification do not reflect the real costs of the examinations. The costs that are calculated using the activity-based costing system may vary according to the service types and levels of health care institutions. However, the main parameters of the method used in the study reflect the necessity of a more accurate banding of pathology examinations. The banding specified by the Healthcare Implementation Notification Tariff needs to be revised to reflect the real costs in Turkey.

A Comparative Study of Activity-Based Costing vs. Current Pricing System for Pathology Examinations at Okmeydani Training and Research Hospital, Turkey.

Science.gov (United States)

Yarikkaya, Enver; Özekinci, Selver; Sargan, Aytül; Durmuş, Şenay Erdoğan; Yildiz, Fetin Rüştü

2017-01-01

To provide real cost data for pathology examinations by using activity-based costing method, in order to provide means to departments, health administrators and the social security institution to achieve improvements in financial planning, quality and cost control. The cost of the histopathological examinations, which were accepted by the Department of Pathology at Okmeydanı Training and Research Hospital during August 2014, was calculated using the activity-based costing method. The costs were compared with the amounts specified in the Healthcare Implementation Notification Tariff and the conventional volume-based costing. Most pathology examinations listed within a given band in the Healthcare Implementation Notification Tariff show variations in unit costs. The study found that the costs of 77.4% of the examinations were higher than the prices listed in the Healthcare Implementation Notification Tariff. The pathology examination tariffs specified in the Healthcare Implementation Notification do not reflect the real costs of the examinations. The costs that are calculated using the activity-based costing system may vary according to the service types and levels of health care institutions. However, the main parameters of the method used in the study reflect the necessity of a more accurate banding of pathology examinations. The banding specified by the Healthcare Implementation Notification Tariff needs to be revised to reflect the real costs in Turkey.

[Relating costs to activities in hospitals. Use of internal cost accounting].

Science.gov (United States)

Stavem, K

1995-01-10

During the last few years hospital cost accounting has become widespread in many countries, in parallel with increasing cost pressure, greater competition and new financing schemes. Cost accounting has been used in the manufacturing industry for many years. Costs can be related to activities and production, e.g. by the costing of procedures, episodes of care and other internally defined cost objectives. Norwegian hospitals have lagged behind in the adoption of cost accounting. They ought to act quickly if they want to be prepared for possible changes in health care financing. The benefits can be considerable to a hospital operating in a rapidly changing health care environment.

Misinterpretation of the strategic significance of cost driver analysis: evidence from management accounting theory and practice

Directory of Open Access Journals (Sweden)

Henry T Palowski

2011-06-01

Full Text Available This paper traces the development of cost driver theory in the Strategy literature and reflects on misinterpretations of the strategic significance of the theory in related academic disciplines, notably Management Accounting. Management Accounting has largely been responsible for informing costing practice in a wide range of organizational settings. The paper considers one such application- i.e. the case of the Higher Education Funding Council’s (HEFC costing and pricing initiative for UK universities. The project was completed just under five years ago, although details of implementation are still ongoing, to a degree. The systems in place incorporate most of the theoretical flaws outlined in this paper. Rather than providing cost driver analysis to aid the strategic management process in universities, the system appears to represent little more than a compliance and reporting framework between university central administrations and the funding provider, HEFC.

Impacts of battery characteristics, driver preferences and road network features on travel costs of a plug-in hybrid electric vehicle (PHEV) for long-distance trips

International Nuclear Information System (INIS)

Arslan, Okan; Yıldız, Barış; Ekin Karaşan, Oya

2014-01-01

In a road network with refueling and fast charging stations, the minimum-cost driving path of a plug-in hybrid electric vehicle (PHEV) depends on factors such as location and availability of refueling/fast charging stations, capacity and cost of PHEV batteries, and driver tolerance towards extra mileage or additional stopping. In this paper, our focus is long-distance trips of PHEVs. We analyze the impacts of battery characteristics, often-overlooked driver preferences and road network features on PHEV travel costs for long-distance trips and compare the results with hybrid electric and conventional vehicles. We investigate the significance of these factors and derive critical managerial insights for shaping the future investment decisions about PHEVs and their infrastructure. In particular, our findings suggest that with a certain level of deployment of fast charging stations, well established cost and emission benefits of PHEVs for the short range trips can be extended to long distance. Drivers' stopping intolerance may hamper these benefits; however, increasing battery capacity may help overcome the adverse effects of this intolerance. - Highlights: • We investigate the travel costs of CVs, HEVs and PHEVs for long-distance trips. • We analyze the impacts of battery, driver and road network characteristics on the costs. • We provide critical managerial insights to shape the investment decisions about PHEVs. • Drivers' stopping intolerance may hamper the cost and emission benefits of PHEVs. • Negative effect of intolerance on cost may be overcome by battery capacity expansion

Fulfilling the pedestrian protection directive using a long-wavelength infrared camera designed to meet both performance and cost targets

Science.gov (United States)

Källhammer, Jan-Erik; Pettersson, Håkan; Eriksson, Dick; Junique, Stéphane; Savage, Susan; Vieider, Christian; Andersson, Jan Y.; Franks, John; Van Nylen, Jan; Vercammen, Hans; Kvisterøy, Terje; Niklaus, Frank; Stemme, Göran

2006-04-01

Pedestrian fatalities are around 15% of the traffic fatalities in Europe. A proposed EU regulation requires the automotive industry to develop technologies that will substantially decrease the risk for Vulnerable Road Users when hit by a vehicle. Automatic Brake Assist systems, activated by a suitable sensor, will reduce the speed of the vehicle before the impact, independent of any driver interaction. Long Wavelength Infrared technology is an ideal candidate for such sensors, but requires a significant cost reduction. The target necessary for automotive serial applications are well below the cost of systems available today. Uncooled bolometer arrays are the most mature technology for Long Wave Infrared with low-cost potential. Analyses show that sensor size and production yield along with vacuum packaging and the optical components are the main cost drivers. A project has been started to design a new Long Wave Infrared system with a ten times cost reduction potential, optimized for the pedestrian protection requirement. It will take advantage of the progress in Micro Electro-Mechanical Systems and Long Wave Infrared optics to keep the cost down. Deployable and pre-impact braking systems can become effective alternatives to passive impact protection systems solutions fulfilling the EU pedestrian protection regulation. Low-cost Long Wave Infrared sensors will be an important enabler to make such systems cost competitive, allowing high market penetration.

Activity-Based Costing Application in an Urban Mass Transport Company

Directory of Open Access Journals (Sweden)

Popesko Boris

2011-12-01

Full Text Available The purpose of this paper is to provide a basic overview of the application of Activity-Based Costing in an urban mass transport company which operates land public transport via buses and trolleys within the city. The case study was conducted using the Activity-Based Methodology in order to calculate the true cost of individual operations and to measure the profitability of particular transport lines. The case study analysis showed the possible effects of the application of the Activity-Based Costing for an urban mass transport company as well as the limitations of using the ABC methodology in the service industry. With regards to the application of the ABC methodology, the primary limitation of the accuracy of the conclusions is the quality of the non-financial information which had to be gathered throughout the implementation process. A basic limitation of the accurate data acquisition is the nature of the fare system of the transport company which does not allow the identification of the route that is taken by an individual passenger. The study illustrates the technique of ABC in urban mass transport and provides a real company example of information outputs of the ABC system. The users indicated that, the ABC model is very useful for profitability reporting and profit management. Also, the paper shows specific application of the Activity-Based Methodology in conditions of urban mass transport companies with regional specifics.

Activity based costing model for inventory valuation

Directory of Open Access Journals (Sweden)

Vineet Chouhan

2017-03-01

Full Text Available Activity-Based-Model (ABC is used for the purpose of significant improvement for overhead accounting systems by providing the best information required for managerial decision. This pa-per discusses implacability of ABC technique on inventory valuation as a management account-ing innovation. In order to prove the applicability of ABC for inventory control a material driven medium-sized and privately owned company from engineering (iron and steel industry is select-ed and by analysis of its production process and its material dependency and use of indirect in-ventory, an ABC model is explored for better inventory control. The case revealed that the ne-cessity of ABC in the area of inventory control is significant. The company is not only able to increase its quality of decision but also it can significantly analyze its cost of direct material cost, valuation of direct material and use its implications for better decision making.

Designing an activity-based costing model for a non-admitted prisoner healthcare setting.

Science.gov (United States)

Cai, Xiao; Moore, Elizabeth; McNamara, Martin

2013-09-01

To design and deliver an activity-based costing model within a non-admitted prisoner healthcare setting. Key phases from the NSW Health clinical redesign methodology were utilised: diagnostic, solution design and implementation. The diagnostic phase utilised a range of strategies to identify issues requiring attention in the development of the costing model. The solution design phase conceptualised distinct 'building blocks' of activity and cost based on the speciality of clinicians providing care. These building blocks enabled the classification of activity and comparisons of costs between similar facilities. The implementation phase validated the model. The project generated an activity-based costing model based on actual activity performed, gained acceptability among clinicians and managers, and provided the basis for ongoing efficiency and benchmarking efforts.

Cost Model for Digital Curation: Cost of Digital Migration

DEFF Research Database (Denmark)

Kejser, Ulla Bøgvad; Nielsen, Anders Bo; Thirifays, Alex

2009-01-01

The Danish Ministry of Culture is currently funding a project to set up a model for costing preservation of digital materials held by national cultural heritage institutions. The overall objective of the project is to provide a basis for comparing and estimating future financial requirements...... for digital preservation and to increase cost effectiveness of digital preservation activities. In this study we describe an activity based costing methodology for digital preservation based on the OAIS Reference Model. In order to estimate the cost of digital migrations we have identified cost critical...

VIABILITY OF SOME APPLIED COST SYSTEMS IN MANUFACTURING FIRMS: EGYPT'S CASE

Directory of Open Access Journals (Sweden)

Karim Mamdouh ABBAS

2015-04-01

Full Text Available The present study aims to analyze viability of some applied cost systems. The population of the study is some Egyptian manufacturing firms. The number of received questionnaires was 385. The results indicated that , according to the application extent indicator, the currently cost systems in Egyptian manufacturing firms may be descendingly arranged as follows: Activity Based Costing (ABC system, Target Costing (TC system , Resource Consumption Accounting (RCA system, Activity Based Management (ABM ,Other systems, Theory of Constraints (TOC and Value Chain (VC analysis.

Performance and cost evaluation of health information systems using micro-costing and discrete-event simulation.

Science.gov (United States)

Rejeb, Olfa; Pilet, Claire; Hamana, Sabri; Xie, Xiaolan; Durand, Thierry; Aloui, Saber; Doly, Anne; Biron, Pierre; Perrier, Lionel; Augusto, Vincent

2018-06-01

Innovation and health-care funding reforms have contributed to the deployment of Information and Communication Technology (ICT) to improve patient care. Many health-care organizations considered the application of ICT as a crucial key to enhance health-care management. The purpose of this paper is to provide a methodology to assess the organizational impact of high-level Health Information System (HIS) on patient pathway. We propose an integrated performance evaluation of HIS approach through the combination of formal modeling using the Architecture of Integrated Information Systems (ARIS) models, a micro-costing approach for cost evaluation, and a Discrete-Event Simulation (DES) approach. The methodology is applied to the consultation for cancer treatment process. Simulation scenarios are established to conclude about the impact of HIS on patient pathway. We demonstrated that although high level HIS lengthen the consultation, occupation rate of oncologists are lower and quality of service is higher (through the number of available information accessed during the consultation to formulate the diagnostic). The provided method allows also to determine the most cost-effective ICT elements to improve the care process quality while minimizing costs. The methodology is flexible enough to be applied to other health-care systems.

Whole Building Cost and Performance Measurement: Data Collection Protocol Revision 2

Energy Technology Data Exchange (ETDEWEB)

Fowler, Kimberly M.; Spees, Kathleen L.; Kora, Angela R.; Rauch, Emily M.; Hathaway, John E.; Solana, Amy E.

2009-03-27

This protocol was written for the Department of Energy’s Federal Energy Management Program (FEMP) to be used by the public as a tool for assessing building cost and performance measurement. The primary audiences are sustainable design professionals, asset owners, building managers, and research professionals within the Federal sector. The protocol was developed based on the need for measured performance and cost data on sustainable design projects. Historically there has not been a significant driver in the public or private sector to quantify whole building performance in comparable terms. The deployment of sustainable design into the building sector has initiated many questions on the performance and operational cost of these buildings.

Activity-based costing evaluation of a [(18)F]-fludeoxyglucose positron emission tomography study.

Science.gov (United States)

Krug, Bruno; Van Zanten, Annie; Pirson, Anne-Sophie; Crott, Ralph; Borght, Thierry Vander

2009-10-01

The aim of the study is to use the activity-based costing approach to give a better insight in the actual cost structure of a positron emission tomography procedure (FDG-PET) by defining the constituting components and by simulating the impact of possible resource or practice changes. The cost data were obtained from the hospital administration, personnel and vendor interviews as well as from structured questionnaires. A process map separates the process in 16 patient- and non-patient-related activities, to which the detailed cost data are related. One-way sensitivity analyses shows to which degree of uncertainty the different parameters affect the individual cost and evaluate the impact of possible resource or practice changes like the acquisition of a hybrid PET/CT device, the patient throughput or the sales price of a 370MBq (18)F-FDG patient dose. The PET centre spends 73% of time in clinical activities and the resting time after injection of the tracer (42%) is the single largest departmental cost element. The tracer cost and the operational time have the most influence on cost per procedure. The analysis shows a total cost per FDG-PET ranging from 859 Euro for a BGO PET camera to 1142 Euro for a 16 slices PET-CT system, with a distribution of the resource costs in decreasing order: materials (44%), equipment (24%), wage (16%), space (6%) and hospital overhead (10%). The cost of FDG-PET is mainly influenced by the cost of the radiopharmaceutical. Therefore, the latter rather than the operational time should be reduced in order to improve its cost-effectiveness.

An improved set of standards for finding cost for cost-effectiveness analysis.

Science.gov (United States)

Barnett, Paul G

2009-07-01

Guidelines have helped standardize methods of cost-effectiveness analysis, allowing different interventions to be compared and enhancing the generalizability of study findings. There is agreement that all relevant services be valued from the societal perspective using a long-term time horizon and that more exact methods be used to cost services most affected by the study intervention. Guidelines are not specific enough with respect to costing methods, however. The literature was reviewed to identify the problems associated with the 4 principal methods of cost determination. Microcosting requires direct measurement and is ordinarily reserved to cost novel interventions. Analysts should include nonwage labor cost, person-level and institutional overhead, and the cost of development, set-up activities, supplies, space, and screening. Activity-based cost systems have promise of finding accurate costs of all services provided, but are not widely adopted. Quality must be evaluated and the generalizability of cost estimates to other settings must be considered. Administrative cost estimates, chiefly cost-adjusted charges, are widely used, but the analyst must consider items excluded from the available system. Gross costing methods determine quantity of services used and employ a unit cost. If the intervention will affect the characteristics of a service, the method should not assume that the service is homogeneous. Questions are posed for future reviews of the quality of costing methods. The analyst must avoid inappropriate assumptions, especially those that bias the analysis by exclusion of costs that are affected by the intervention under study.

Healthcare costs for new technologies

International Nuclear Information System (INIS)

Goyen, Mathias; Debatin, Joerg F.

2009-01-01

Continuous ageing of the population coupled with growing health consciousness and continuous technological advances have fueled the rapid rise in healthcare costs in the United States and Europe for the past several decades. The exact impact of new medical technology on long-term spending growth remains the subject of controversy. By all measures it is apparent that new medical technology is the dominant driver of increases in health-care costs and hence insurance premiums. This paper addresses the impact of medical technology on healthcare delivery systems with regard to medical practice and costs. We first explore factors affecting the growth of medical technology and then attempt to provide a means for assessing the effectiveness of medical technology. Avoidable healthcare cost drivers are identified and related policy issues are discussed. (orig.)

Healthcare costs for new technologies

Energy Technology Data Exchange (ETDEWEB)

Goyen, Mathias; Debatin, Joerg F. [University Medical Center Hamburg-Eppendorf, Hamburg (Germany)

2009-03-15

Continuous ageing of the population coupled with growing health consciousness and continuous technological advances have fueled the rapid rise in healthcare costs in the United States and Europe for the past several decades. The exact impact of new medical technology on long-term spending growth remains the subject of controversy. By all measures it is apparent that new medical technology is the dominant driver of increases in health-care costs and hence insurance premiums. This paper addresses the impact of medical technology on healthcare delivery systems with regard to medical practice and costs. We first explore factors affecting the growth of medical technology and then attempt to provide a means for assessing the effectiveness of medical technology. Avoidable healthcare cost drivers are identified and related policy issues are discussed. (orig.)

Low Cost Vision Based Personal Mobile Mapping System

Science.gov (United States)

Amami, M. M.; Smith, M. J.; Kokkas, N.

2014-03-01

Mobile mapping systems (MMS) can be used for several purposes, such as transportation, highway infrastructure mapping and GIS data collecting. However, the acceptance of these systems is not wide spread and their use is still limited due the high cost and dependency on the Global Navigation Satellite System (GNSS). A low cost vision based personal MMS has been produced with an aim to overcome these limitations. The system has been designed to depend mainly on cameras and use of low cost GNSS and inertial sensors to provide a bundle adjustment solution with initial values. The system has the potential to be used indoor and outdoor. The system has been tested indoors and outdoors with different GPS coverage, surrounded features, and narrow and curvy paths. Tests show that the system is able to work in such environments providing 3D coordinates of better than 10 cm accuracy.

Low Cost Vision Based Personal Mobile Mapping System

Directory of Open Access Journals (Sweden)

M. M. Amami

2014-03-01

Full Text Available Mobile mapping systems (MMS can be used for several purposes, such as transportation, highway infrastructure mapping and GIS data collecting. However, the acceptance of these systems is not wide spread and their use is still limited due the high cost and dependency on the Global Navigation Satellite System (GNSS. A low cost vision based personal MMS has been produced with an aim to overcome these limitations. The system has been designed to depend mainly on cameras and use of low cost GNSS and inertial sensors to provide a bundle adjustment solution with initial values. The system has the potential to be used indoor and outdoor. The system has been tested indoors and outdoors with different GPS coverage, surrounded features, and narrow and curvy paths. Tests show that the system is able to work in such environments providing 3D coordinates of better than 10 cm accuracy.

Ebola in the Netherlands, 2014-2015: costs of preparedness and response.

Science.gov (United States)

Suijkerbuijk, Anita W M; Swaan, Corien M; Mangen, Marie-Josee J; Polder, Johan J; Timen, Aura; Ruijs, Wilhelmina L M

2017-11-17

The recent epidemic of Ebola virus disease (EVD) resulted in countries worldwide to prepare for the possibility of having an EVD patient. In this study, we estimate the costs of Ebola preparedness and response borne by the Dutch health system. An activity-based costing method was used, in which the cost of staff time spent in preparedness and response activities was calculated based on a time-recording system and interviews with key professionals at the healthcare organizations involved. In addition, the organizations provided cost information on patient days of hospitalization, laboratory tests, personal protective equipment (PPE), as well as the additional cleaning and disinfection required. The estimated total costs averaged €12.6 million, ranging from €6.7 to €22.5 million. The main cost drivers were PPE expenditures and preparedness activities of personnel, especially those associated with ambulance services and hospitals. There were 13 possible cases clinically evaluated and one confirmed case admitted to hospital. The estimated total cost of EVD preparedness and response in the Netherlands was substantial. Future costs might be reduced and efficiency increased by designating one ambulance service for transportation and fewer hospitals for the assessment of possible patients with a highly infectious disease of high consequences.

Systems/cost: summary

International Nuclear Information System (INIS)

Grand, P.; Danby, G.; Keane, J.; Spiro, J.; Sutter, D.; Cole, F.; Hoyer, E.; Freytag, K.; Burke, R.

1978-01-01

The purpose of the meeting was to discuss and develop cost-estimating methods for heavy-ion fusion accelerator systems. The group did not consider that its purpose was to make technical judgments on proposed systems, but to develop methods for making reasonable cost estimates of these systems. Such estimates will, it is hoped, provide material for systems studies, will help in guiding research and development efforts by identifying high-leverage subsystems (areas that account for a significant part of total system cost and that might be reduced in cost by further technical development) and to begin to provide data to aid in an eventual decision on the optimum type of accelerator for heavy-ion fusion. The systems considered as examples are: (1) injection system; (2) Wideroe linac; (3) Alvarez linac; (4) induction linac; (5) superconducting accumulator ring; (6) synchrotron; (7) final rf bunching; and (8) final beam transport to target

A tutorial on activity-based costing of electronic health records.

Science.gov (United States)

Federowicz, Marie H; Grossman, Mila N; Hayes, Bryant J; Riggs, Joseph

2010-01-01

As the American Recovery and Restoration Act of 2009 allocates $19 billion to health information technology, it will be useful for health care managers to project the true cost of implementing an electronic health record (EHR). This study presents a step-by-step guide for using activity-based costing (ABC) to estimate the cost of an EHR. ABC is a cost accounting method with a "top-down" approach for estimating the cost of a project or service within an organization. The total cost to implement an EHR includes obvious costs, such as licensing fees, and hidden costs, such as impact on productivity. Unlike other methods, ABC includes all of the organization's expenditures and is less likely to miss hidden costs. Although ABC is used considerably in manufacturing and other industries, it is a relatively new phenomenon in health care. ABC is a comprehensive approach that the health care field can use to analyze the cost-effectiveness of implementing EHRs. In this article, ABC is applied to a health clinic that recently implemented an EHR, and the clinic is found to be more productive after EHR implementation. This methodology can help health care administrators assess the impact of a stimulus investment on organizational performance.

Administrative Costs Associated With Physician Billing and Insurance-Related Activities at an Academic Health Care System.

Science.gov (United States)

Tseng, Phillip; Kaplan, Robert S; Richman, Barak D; Shah, Mahek A; Schulman, Kevin A

2018-02-20

Administrative costs in the US health care system are an important component of total health care spending, and a substantial proportion of these costs are attributable to billing and insurance-related activities. To examine and estimate the administrative costs associated with physician billing activities in a large academic health care system with a certified electronic health record system. This study used time-driven activity-based costing. Interviews were conducted with 27 health system administrators and 34 physicians in 2016 and 2017 to construct a process map charting the path of an insurance claim through the revenue cycle management process. These data were used to calculate the cost for each major billing and insurance-related activity and were aggregated to estimate the health system's total cost of processing an insurance claim. Estimated time required to perform billing and insurance-related activities, based on interviews with management personnel and physicians. Estimated billing and insurance-related costs for 5 types of patient encounters: primary care visits, discharged emergency department visits, general medicine inpatient stays, ambulatory surgical procedures, and inpatient surgical procedures. Estimated processing time and total costs for billing and insurance-related activities were 13 minutes and $20.49 for a primary care visit, 32 minutes and $61.54 for a discharged emergency department visit, 73 minutes and $124.26 for a general inpatient stay, 75 minutes and $170.40 for an ambulatory surgical procedure, and 100 minutes and $215.10 for an inpatient surgical procedure. Of these totals, time and costs for activities carried out by physicians were estimated at a median of 3 minutes or $6.36 for a primary care visit, 3 minutes or $10.97 for an emergency department visit, 5 minutes or $13.29 for a general inpatient stay, 15 minutes or $51.20 for an ambulatory surgical procedure, and 15 minutes or $51.20 for an inpatient surgical procedure. Of

Cost estimates for near-term depolyment of advanced traffic management systems. Final report

Energy Technology Data Exchange (ETDEWEB)

Stevens, S.S.; Chin, S.M.

1993-02-15

The objective of this study is to provide cost est engineering, design, installation, operation and maintenance of Advanced Traffic Management Systems (ATMS) in the largest 75 metropolitan areas in the United States. This report gives estimates for deployment costs for ATMS in the next five years, subject to the qualifications and caveats set out in following paragraphs. The report considers infrastructure components required to realize fully a functional ATMS over each of two highway networks (as discussed in the Section describing our general assumptions) under each of the four architectures identified in the MITRE Intelligent Vehicle Highway Systems (IVHS) Architecture studies. The architectures are summarized in this report in Table 2. Estimates are given for eight combinations of highway networks and architectures. We estimate that it will cost between $8.5 Billion (minimal network) and $26 Billion (augmented network) to proceed immediately with deployment of ATMS in the largest 75 metropolitan areas. Costs are given in 1992 dollars, and are not adjusted for future inflation. Our estimates are based partially on completed project costs, which have been adjusted to 1992 dollars. We assume that a particular architecture will be chosen; projected costs are broken by architecture.

AES, Automated Construction Cost Estimation System

International Nuclear Information System (INIS)

Holder, D.A.

1995-01-01

A - Description of program or function: AES (Automated Estimating System) enters and updates the detailed cost, schedule, contingency, and escalation information contained in a typical construction or other project cost estimates. It combines this information to calculate both un-escalated and escalated and cash flow values for the project. These costs can be reported at varying levels of detail. AES differs from previous versions in at least the following ways: The schedule is entered at the WBS-Participant, Activity level - multiple activities can be assigned to each WBS-Participant combination; the spending curve is defined at the schedule activity level and a weighing factor is defined which determines percentage of cost for the WBS-Participant applied to the schedule activity; Schedule by days instead of Fiscal Year/Quarter; Sales Tax is applied at the Line Item Level- a sales tax codes is selected to indicate Material, Large Single Item, or Professional Services; a 'data filter' has been added to allow user to define data the report is to be generated for. B - Method of solution: Average Escalation Rate: The average escalation for a Bill of is calculated in three steps. 1. A table of quarterly escalation factors is calculated based on the base fiscal year and quarter of the project entered in the estimate record and the annual escalation rates entered in the Standard Value File. 2. The percentage distribution of costs by quarter for the Bill of Material is calculated based on the schedule entered and the curve type. 3. The percent in each fiscal year and quarter in the distribution is multiplied by the escalation factor for the fiscal year and quarter. The sum of these results is the average escalation rate for that Bill of Material. Schedule by curve: The allocation of costs to specific time periods is dependent on three inputs, starting schedule date, ending schedule date, and the percentage of costs allocated to each quarter. Contingency Analysis: The

IMPLEMENTATION OF THE ABC COSTING IN A SERVICES PROVIDER COMPANY

Directory of Open Access Journals (Sweden)

Luiz Ricardo Aguena Jacintho Gil de Castro

2012-12-01

Full Text Available This paper describes the implementation of the Activity-Based Cost (ABC method in a company of taxes and accounting services and outlines the positive and negative aspects encountered during implementation. It should be taken into account that this work has been developed in the fiscal area of cost verification. Bibliographical references, internal company documents and interviews with industry officials and the administrator responsible for the company were used. In the evolving of operations, the costs of the fiscal area and their main activities have been described monthly and through this information, drivers have been developed and the ABC (Activity-Based Costing method has been adopted. With the implementation it became clear that the system provides better visualization for the decision making process, it also provided learning for the company, so that the method should be used for an undetermined period of time.

Direct costs of emergency medical care: a diagnosis-based case-mix classification system.

Science.gov (United States)

Baraff, L J; Cameron, J M; Sekhon, R

1991-01-01

To develop a diagnosis-based case mix classification system for emergency department patient visits based on direct costs of care designed for an outpatient setting. Prospective provider time study with collection of financial data from each hospital's accounts receivable system and medical information, including discharge diagnosis, from hospital medical records. Three community hospital EDs in Los Angeles County during selected times in 1984. Only direct costs of care were included: health care provider time, ED management and clerical personnel excluding registration, nonlabor ED expense including supplies, and ancillary hospital services. Indirect costs for hospitals and physicians, including depreciation and amortization, debt service, utilities, malpractice insurance, administration, billing, registration, and medical records were not included. Costs were derived by valuing provider time based on a formula using annual income or salary and fringe benefits, productivity and direct care factors, and using hospital direct cost to charge ratios. Physician costs were based on a national study of emergency physician income and excluded practice costs. Patients were classified into one of 216 emergency department groups (EDGs) on the basis of the discharge diagnosis, patient disposition, age, and the presence of a limited number of physician procedures. Total mean direct costs ranged from $23 for follow-up visit to $936 for trauma, admitted, with critical care procedure. The mean total direct costs for the 16,771 nonadmitted patients was $69. Of this, 34% was for ED costs, 45% was for ancillary service costs, and 21% was for physician costs. The mean total direct costs for the 1,955 admitted patients was $259. Of this, 23% was for ED costs, 63% was for ancillary service costs, and 14% was for physician costs. Laboratory and radiographic services accounted for approximately 85% of all ancillary service costs and 38% of total direct costs for nonadmitted patients

Unlocking the Potential of Time-Driven Activity-Based Costing for Small Logistics Companies

NARCIS (Netherlands)

Somapa, S.; Cools, M.; Dullaert, W.E.H.

2012-01-01

This paper reports on the development of a time-driven activity-based costing (TDABC) model in a small-sized road transport and logistics company. Activity-based costing (ABC) leads to increased accuracy benefiting decision-making, but the costs of implementation can be high. TDABC tries to overcome

Low-cost far infrared bolometer camera for automotive use

Science.gov (United States)

Vieider, Christian; Wissmar, Stanley; Ericsson, Per; Halldin, Urban; Niklaus, Frank; Stemme, Göran; Källhammer, Jan-Erik; Pettersson, Håkan; Eriksson, Dick; Jakobsen, Henrik; Kvisterøy, Terje; Franks, John; VanNylen, Jan; Vercammen, Hans; VanHulsel, Annick

2007-04-01

A new low-cost long-wavelength infrared bolometer camera system is under development. It is designed for use with an automatic vision algorithm system as a sensor to detect vulnerable road users in traffic. Looking 15 m in front of the vehicle it can in case of an unavoidable impact activate a brake assist system or other deployable protection system. To achieve our cost target below €100 for the sensor system we evaluate the required performance and can reduce the sensitivity to 150 mK and pixel resolution to 80 x 30. We address all the main cost drivers as sensor size and production yield along with vacuum packaging, optical components and large volume manufacturing technologies. The detector array is based on a new type of high performance thermistor material. Very thin Si/SiGe single crystal multi-layers are grown epitaxially. Due to the resulting valence barriers a high temperature coefficient of resistance is achieved (3.3%/K). Simultaneously, the high quality crystalline material provides very low 1/f-noise characteristics and uniform material properties. The thermistor material is transferred from the original substrate wafer to the read-out circuit using adhesive wafer bonding and subsequent thinning. Bolometer arrays can then be fabricated using industry standard MEMS process and materials. The inherently good detector performance allows us to reduce the vacuum requirement and we can implement wafer level vacuum packaging technology used in established automotive sensor fabrication. The optical design is reduced to a single lens camera. We develop a low cost molding process using a novel chalcogenide glass (GASIR®3) and integrate anti-reflective and anti-erosion properties using diamond like carbon coating.

Status of costing hospital nursing work within Australian casemix activity-based funding policy.

Science.gov (United States)

Heslop, Liza

2012-02-01

Australia has a long history of patient level costing initiated when casemix funding was implemented in several states in the early 1990s. Australia includes, to some extent, hospital payment based on nursing intensity adopted within casemix funding policy and the Diagnostic Related Group system. Costing of hospital nursing services in Australia has not changed significantly in the last few decades despite widespread introduction of casemix funding policy at the state level. Recent Commonwealth of Australia National Health Reform presents change to the management of the delivery of health care including health-care costing. There is agreement for all Australian jurisdictions to progress to casemix-based activity funding. Within this context, nurse costing infrastructure presents contemporary issues and challenges. An assessment is made of the progress of costing nursing services within casemix funding models in Australian hospitals. Valid and reliable Australian-refined nursing service weights might overcome present cost deficiencies and limitations. © 2012 Blackwell Publishing Asia Pty Ltd.

U.S. Department of Energy Hydrogen Storage Cost Analysis

Energy Technology Data Exchange (ETDEWEB)

Law, Karen; Rosenfeld, Jeffrey; Han, Vickie; Chan, Michael; Chiang, Helena; Leonard, Jon

2013-03-11

The overall objective of this project is to conduct cost analyses and estimate costs for on- and off-board hydrogen storage technologies under development by the U.S. Department of Energy (DOE) on a consistent, independent basis. This can help guide DOE and stakeholders toward the most-promising research, development and commercialization pathways for hydrogen-fueled vehicles. A specific focus of the project is to estimate hydrogen storage system cost in high-volume production scenarios relative to the DOE target that was in place when this cost analysis was initiated. This report and its results reflect work conducted by TIAX between 2004 and 2012, including recent refinements and updates. The report provides a system-level evaluation of costs and performance for four broad categories of on-board hydrogen storage: (1) reversible on-board metal hydrides (e.g., magnesium hydride, sodium alanate); (2) regenerable off-board chemical hydrogen storage materials(e.g., hydrolysis of sodium borohydride, ammonia borane); (3) high surface area sorbents (e.g., carbon-based materials); and 4) advanced physical storage (e.g., 700-bar compressed, cryo-compressed and liquid hydrogen). Additionally, the off-board efficiency and processing costs of several hydrogen storage systems were evaluated and reported, including: (1) liquid carrier, (2) sodium borohydride, (3) ammonia borane, and (4) magnesium hydride. TIAX applied a bottom-up costing methodology customized to analyze and quantify the processes used in the manufacture of hydrogen storage systems. This methodology, used in conjunction with ® software and other tools, developed costs for all major tank components, balance-of-tank, tank assembly, and system assembly. Based on this methodology, the figure below shows the projected on-board high-volume factory costs of the various analyzed hydrogen storage systems, as designed. Reductions in the key cost drivers may bring hydrogen storage system costs closer to this DOE target

Mental health services costs within the Alberta criminal justice system.

Science.gov (United States)

Jacobs, Philip; Moffatt, Jessica; Dewa, Carolyn S; Nguyen, Thanh; Zhang, Ting; Lesage, Alain

2016-01-01

Mental illness has been widely cited as a driver of costs in the criminal justice system. The objective of this paper is to estimate the additional mental health service costs incurred within the criminal justice system that are incurred because of people with mental illnesses who go through the system. Our focus is on costs in Alberta. We set up a model of the flow of all persons through the criminal justice system, including police, court, and corrections components, and for mental health diversion, review, and forensic services. We estimate the transitional probabilities and costs that accrue as persons who have been charged move through the system. Costs are estimated for the Alberta criminal justice system as a whole, and for the mental illness component. Public expenditures for each person diverted or charged in Alberta in the criminal justice system, including mental health costs, were $16,138. The 95% range of this estimate was from $14,530 to $19,580. Of these costs, 87% were for criminal justice services and 13% were for mental illness-related services. Hospitalization for people with mental illness who were reviewed represented the greatest additional cost associated with mental illnesses. Treatment costs stemming from mental illnesses directly add about 13% onto those in the criminal justice system. Copyright © 2016 Elsevier Ltd. All rights reserved.

From design of activity-based costing systems to their regular use From design of activity-based costing systems to their regular use Del diseño de modelos de costes basados en las actividades a su uso normalizado

Directory of Open Access Journals (Sweden)

M. Angels Fito

2011-11-01

Full Text Available Purpose: To understand why many companies that develop activity-based costing (ABC systems do not use them on a regular basis.Design/methodology/approach: We review the existing literature on the process of ABC implementation, concentrating specifically on the step from the acceptance of an ABC model to its routine use. We identify key factors for successful uptake of ABC systems as a regular management tool and use these factors to interpret the experience of two companies that illustrate, respectively, a success and a failure.Findings: Sixteen factors are identified that positively or negatively influence the actual use of ABC costing systems. These factors can be grouped into six categories: strategic, individual, organizational, technological, operational and external factors.Originality/value: This paper sheds some light on the paradoxical situation that regular usage of ABC systems is not as common as might be expected given their widespread acceptance on a conceptual level.Purpose: To understand why many companies that develop activity-based costing (ABC systems do not use them on a regular basis.Design/methodology/approach: We review the existing literature on the process of ABC implementation, concentrating specifically on the step from the acceptance of an ABC model to its routine use. We identify key factors for successful uptake of ABC systems as a regular management tool and use these factors to interpret the experience of two companies that illustrate, respectively, a success and a failure.Findings: Sixteen factors are identified that positively or negatively influence the actual use of ABC costing systems. These factors can be grouped into six categories: strategic, individual, organizational, technological, operational and external factors.Originality/value: This paper sheds some light on the paradoxical situation that regular usage of ABC systems is not as common as might be expected given their widespread acceptance on a

Activity-Based Costing in User Services of an Academic Library.

Science.gov (United States)

Ellis-Newman, Jennifer

2003-01-01

The rationale for using Activity-Based Costing (ABC) in a library is to allocate indirect costs to products and services based on the factors that most influence them. This paper discusses the benefits of ABC to library managers and explains the steps involved in implementing ABC in the user services area of an Australian academic library.…

Improving Efficiency Using Time-Driven Activity-Based Costing Methodology.

Science.gov (United States)

Tibor, Laura C; Schultz, Stacy R; Menaker, Ronald; Weber, Bradley D; Ness, Jay; Smith, Paula; Young, Phillip M

2017-03-01

The aim of this study was to increase efficiency in MR enterography using a time-driven activity-based costing methodology. In February 2015, a multidisciplinary team was formed to identify the personnel, equipment, space, and supply costs of providing outpatient MR enterography. The team mapped the current state, completed observations, performed timings, and calculated costs associated with each element of the process. The team used Pareto charts to understand the highest cost and most time-consuming activities, brainstormed opportunities, and assessed impact. Plan-do-study-act cycles were developed to test the changes, and run charts were used to monitor progress. The process changes consisted of revising the workflow associated with the preparation and administration of glucagon, with completed implementation in November 2015. The time-driven activity-based costing methodology allowed the radiology department to develop a process to more accurately identify the costs of providing MR enterography. The primary process modification was reassigning responsibility for the administration of glucagon from nurses to technologists. After implementation, the improvements demonstrated success by reducing non-value-added steps and cost by 13%, staff time by 16%, and patient process time by 17%. The saved process time was used to augment existing examination time slots to more accurately accommodate the entire enterographic examination. Anecdotal comments were captured to validate improved staff satisfaction within the multidisciplinary team. This process provided a successful outcome to address daily workflow frustrations that could not previously be improved. A multidisciplinary team was necessary to achieve success, in addition to the use of a structured problem-solving approach. Copyright © 2016 American College of Radiology. Published by Elsevier Inc. All rights reserved.

2002 IDA Cost Research Symposium: Estimating the Costs of Transforming U.S. Military Forces

Science.gov (United States)

2002-08-01

Missile Database Improvements • ACEIT Enhancements VIII-5 6I n t e g r i t y - S e r v i c e - E x c e l l e n c e Capability to Cost...systems • Expand CERs • Create interface to download to CO$STAT for CER development • Extract CERs and move them into ACEIT • Supports: Conventional...Cost Model MDA–5 Integrating MDA Cost Risk Model with ACEIT MDA–6 Target Common Cost Model MDA–7 Deployable Optics Development and Manufacturing MDA

The promise--and peril--of integrated cost systems.

Science.gov (United States)

Cooper, R; Kaplan, R S

1998-01-01

Recent advances in managerial accounting have helped executives get the information they need to make good strategic decisions. But today's enterprise resource planning systems promise even greater benefits--the chance to integrate activity-based costing, operational-control, and financial reporting systems. But managers need to approach integration very thoughtfully, or they could end up with a system that drives decision making in the wrong direction. Operational-control and ABC systems have fundamentally different purposes. Their requirements for accuracy, timeliness, and aggregation are so different that no single, fully integrated approach can be adequate for both purposes. If an integrated system used real-time cost data instead of standard rates in its ABC subsystem, for example, the result would be dangerously distorted messages about individual product profitability--and that's precisely the problem ABC systems were originally designed to address. Proper linkage and feedback between the two systems is possible, however. Through activity-based budgeting, the ABC system is linked directly to operations control: managers can determine the supply and practical capacity of resources in forthcoming periods. Linking operational control to ABC is also possible. The activity-based portion of an operational control system collects information that, while it mustn't be fed directly into the activity-based strategic cost system, can be extremely useful once it's been properly analyzed. Finally, ABC and operational control can be linked to financial reporting to generate cost of goods sold and inventory valuations--but again, with precautions.

Cost effectiveness of recycling: A systems model

Energy Technology Data Exchange (ETDEWEB)

Tonjes, David J., E-mail: david.tonjes@stonybrook.edu [Department of Technology and Society, College of Engineering and Applied Sciences, Stony Brook University, Stony Brook, NY 11794-3560 (United States); Waste Reduction and Management Institute, School of Marine and Atmospheric Sciences, Stony Brook University, Stony Brook, NY 11794-5000 (United States); Center for Bioenergy Research and Development, Advanced Energy Research and Technology Center, Stony Brook University, 1000 Innovation Rd., Stony Brook, NY 11794-6044 (United States); Mallikarjun, Sreekanth, E-mail: sreekanth.mallikarjun@stonybrook.edu [Department of Technology and Society, College of Engineering and Applied Sciences, Stony Brook University, Stony Brook, NY 11794-3560 (United States)

2013-11-15

Highlights: • Curbside collection of recyclables reduces overall system costs over a range of conditions. • When avoided costs for recyclables are large, even high collection costs are supported. • When avoided costs for recyclables are not great, there are reduced opportunities for savings. • For common waste compositions, maximizing curbside recyclables collection always saves money. - Abstract: Financial analytical models of waste management systems have often found that recycling costs exceed direct benefits, and in order to economically justify recycling activities, externalities such as household expenses or environmental impacts must be invoked. Certain more empirically based studies have also found that recycling is more expensive than disposal. Other work, both through models and surveys, have found differently. Here we present an empirical systems model, largely drawn from a suburban Long Island municipality. The model accounts for changes in distribution of effort as recycling tonnages displace disposal tonnages, and the seven different cases examined all show that curbside collection programs that manage up to between 31% and 37% of the waste stream should result in overall system savings. These savings accrue partially because of assumed cost differences in tip fees for recyclables and disposed wastes, and also because recycling can result in a more efficient, cost-effective collection program. These results imply that increases in recycling are justifiable due to cost-savings alone, not on more difficult to measure factors that may not impact program budgets.

Cost Analysis of Plug-In Hybred Electric Vehicles Using GPS-Based Longitudinal Travel Data

Energy Technology Data Exchange (ETDEWEB)

Wu, Xing [Lamar University; Dong, Jing [Iowa State University; Lin, Zhenhong [ORNL

2014-01-01

Using spatial, longitudinal travel data of 415 vehicles over 3 18 months in the Seattle metropolitan area, this paper estimates the operating costs of plug-in hybrid electric vehicles (PHEVs) of various electric ranges (10, 20, 30, and 40 miles) for 3, 5, and 10 years of payback period, considering different charging infrastructure deployment levels and gasoline prices. Some key findings were made. (1) PHEVs could help save around 60% or 40% in energy costs, compared with conventional gasoline vehicles (CGVs) or hybrid electric vehicles (HEVs), respectively. However, for motorists whose daily vehicle miles traveled (DVMT) is significant, HEVs may be even a better choice than PHEV40s, particularly in areas that lack a public charging infrastructure. (2) The incremental battery cost of large-battery PHEVs is difficult to justify based on the incremental savings of PHEVs operating costs unless a subsidy is offered for largebattery PHEVs. (3) When the price of gasoline increases from $4/gallon to $5/gallon, the number of drivers who benefit from a larger battery increases significantly. (4) Although quick chargers can reduce charging time, they contribute little to energy cost savings for PHEVs, as opposed to Level-II chargers.

Synergistic Role of Balanced Scorecard/Activity Based Costing and Goal Programming Combined Model on Strategic Cost Management

OpenAIRE

Taleghani, Mohammad

2017-01-01

During the past few years, we have seen a significant shift in cost accounting and management. In the new business environment, cost management has become a critical skill, but it is not sufficient for simply reducing costs; instead, costs must be managed strategically. Application of a successful Strategic Cost Management (StraCM) system plays the significant role in success of organization performance. In this study, we want to illustrate how the goal programming model in combination with t...

Multivariable Parametric Cost Model for Ground Optical Telescope Assembly

Science.gov (United States)

Stahl, H. Philip; Rowell, Ginger Holmes; Reese, Gayle; Byberg, Alicia

2005-01-01

A parametric cost model for ground-based telescopes is developed using multivariable statistical analysis of both engineering and performance parameters. While diameter continues to be the dominant cost driver, diffraction-limited wavelength is found to be a secondary driver. Other parameters such as radius of curvature are examined. The model includes an explicit factor for primary mirror segmentation and/or duplication (i.e., multi-telescope phased-array systems). Additionally, single variable models Based on aperture diameter are derived.

Multivariable Parametric Cost Model for Ground Optical: Telescope Assembly

Science.gov (United States)

Stahl, H. Philip; Rowell, Ginger Holmes; Reese, Gayle; Byberg, Alicia

2004-01-01

A parametric cost model for ground-based telescopes is developed using multi-variable statistical analysis of both engineering and performance parameters. While diameter continues to be the dominant cost driver, diffraction limited wavelength is found to be a secondary driver. Other parameters such as radius of curvature were examined. The model includes an explicit factor for primary mirror segmentation and/or duplication (i.e. multi-telescope phased-array systems). Additionally, single variable models based on aperture diameter were derived.

Penerapan Activity Based Costing System Dalam Menentukan Harga Pokok Jasa Rawat Inap (Studi Pada RSUD Ibnu Sina Kabupaten Gresik Tahun 2013)

OpenAIRE

Nailufar, Uyun

2015-01-01

The aims of this study are to determine the price of basic product for inpatient services at the Ibnu Sina Hospital, Gresik in both the traditional cost accounting system and the Activity Based Costing System, and estimate the result differences between the two system. Moreover, a descriptive with the case study approach method was used in this study. Calculating and comparing the price of basic product for inpatient services using the traditional cost accounting system and the Aactivity Base...

Development of an accumulation-based system for cost-effective chamber measurements of inert trace gas fluxes

DEFF Research Database (Denmark)

Ambus, Per; Skiba, U.; Drewer, J.

2010-01-01

As soil–atmosphere fluxes of greenhouse gases are characterized by high temporal fluctuations, frequent measurements in the range of hours to days need to be deployed, resulting in high analytical costs. We have therefore developed a new low-cost system that combines high-frequency automated...

Enhancing efficiency of production cost on seafood process with activity based management method

Science.gov (United States)

Tarigan, U.; Tarigan, U. P. P.

2018-02-01

The efficiency of production costs has an important impact maintaining company presence in the business world, as well as in the face of increasingly sharp global competition. It was done by identifying and reducing non-value-added activities to decrease production costs and increase profits. The study was conducted at a company engaged in the production of squid (seafood). It has a higher product price than the market as Rp 50,000 per kg while the market price of squid is only Rp 35,000 per kg. The price of the product to be more expensive compared with market price, and thereby a lot more consumers choose the lower market price. Based on the discussions conducted, the implementation of Activity Based Management was seen in the reduction of activities that are not added value in the production process. Since each activities consumers cost, the reduction of nonvalue-added activities has effects on the decline of production cost. The production’s decline costs mainly occur in the reduction of material transfer costs. The results showed that there was an increase after the improvement of 2.60%. Increased production cost efficiency causes decreased production costs and increased profits.

Activity-based costing of security services for a Department of Energy nuclear site

International Nuclear Information System (INIS)

Togo, D.F.

1997-01-01

Department of Energy (DOE) nuclear facilities are being encouraged to reduce costs but the accounting data typically in use by the financial organizations at these laboratories cannot easily be used to determine which security activities offer the best reduction in cost. For example, labor costs have historically been aggregated over various activities, making it difficult to determine the true costs of performing each activity. To illustrate how this problem can be solved, a study was performed applying activity-based costing (ABC) to a hypothetical DOE facility. ABC is a type of cost-accounting developed expressly to determine truer costs of company activities. The hypothetical facility was defined to have features similar to those found across the DOE nuclear complex. ABC traced costs for three major security functions - Protective Force Operations, Material Control and Accountability, and Technical Security - to various activities. Once these costs had been allocated, we compared the cost of three fictitious upgrades: (1) an improvement in training or weapons that allows the protective force to have better capabilities instead of adding more response forces; (2) a change in the frequency of inventories; and (3) a reduction in the annual frequencies of perimeter sensor tests

Costs of fire suppression forces based on cost-aggregation approach

Science.gov (United States)

Gonz& aacute; lez-Cab& aacute; Armando n; Charles W. McKetta; Thomas J. Mills

1984-01-01

A cost-aggregation approach has been developed for determining the cost of Fire Management Inputs (FMls)-the direct fireline production units (personnel and equipment) used in initial attack and large-fire suppression activities. All components contributing to an FMI are identified, computed, and summed to estimate hourly costs. This approach can be applied to any FMI...

Is the activity based costing system a viable instrument for small and medium enterprises? The case of Mexico

Directory of Open Access Journals (Sweden)

Martha Ríos-Manríquez

2014-07-01

Full Text Available Small and medium-sized firms (SMEs face serious challenges in order to be competitive, and they need to develop strategies enabling them to control their costs. This work aims to analyze and evaluate the impact, penetration and characteristics of Activity-Based Costs (ABC. This research is of a quantitative type descriptive design, with a sample of 180 SMEs. The results show low penetration of the ABC in SMEs using traditional systems, due to the lack of knowledge, and that there are enterprises that do not use any costing system at all. Finally the Mexican SMEs recognize the compatibility and usefulness of ABC, and that the most important fact is to understand the possible application of different costing methodologies for different purposes.

Preliminary Multivariable Cost Model for Space Telescopes

Science.gov (United States)

Stahl, H. Philip

2010-01-01

Parametric cost models are routinely used to plan missions, compare concepts and justify technology investments. Previously, the authors published two single variable cost models based on 19 flight missions. The current paper presents the development of a multi-variable space telescopes cost model. The validity of previously published models are tested. Cost estimating relationships which are and are not significant cost drivers are identified. And, interrelationships between variables are explored

Waste management facilities cost information: System cost model product description. Revision 2

International Nuclear Information System (INIS)

Lundeen, A.S.; Hsu, K.M.; Shropshire, D.E.

1996-02-01

In May of 1994, Lockheed Idaho Technologies Company (LITCO) in Idaho Falls, Idaho and subcontractors developed the System Cost Model (SCM) application. The SCM estimates life-cycle costs of the entire US Department of Energy (DOE) complex for designing; constructing; operating; and decommissioning treatment, storage, and disposal (TSD) facilities for mixed low-level, low-level, transuranic, and mixed transuranic waste. The SCM uses parametric cost functions to estimate life-cycle costs for various treatment, storage, and disposal modules which reflect planned and existing facilities at DOE installations. In addition, SCM can model new facilities based on capacity needs over the program life cycle. The SCM also provides transportation costs for DOE wastes. Transportation costs are provided for truck and rail and include transport of contact-handled, remote-handled, and alpha (transuranic) wastes. The user can provide input data (default data is included in the SCM) including the volume and nature of waste to be managed, the time period over which the waste is to be managed, and the configuration of the waste management complex (i.e., where each installation's generated waste will be treated, stored, and disposed). Then the SCM uses parametric cost equations to estimate the costs of pre-operations (designing), construction costs, operation management, and decommissioning these waste management facilities

Principles and methods of managerial cost-accounting systems.

Science.gov (United States)

Suver, J D; Cooper, J C

1988-01-01

An introduction to cost-accounting systems for pharmacy managers is provided; terms are defined and examples of specific applications are given. Cost-accounting systems determine, record, and report the resources consumed in providing services. An effective cost-accounting system must provide the information needed for both internal and external reports. In accounting terms, cost is the value given up to secure an asset. In determining how volumes of activity affect costs, fixed costs and variable costs are calculated; applications include pricing strategies, cost determinations, and break-even analysis. Also discussed are the concepts of direct and indirect costs, opportunity costs, and incremental and sunk costs. For most pharmacy department services, process costing, an accounting of intermediate outputs and homogeneous units, is used; in determining the full cost of providing a product or service (e.g., patient stay), job-order costing is used. Development of work-performance standards is necessary for monitoring productivity and determining product costs. In allocating pharmacy department costs, a ratio of costs to charges can be used; this method is convenient, but microcosting (specific identification of the costs of products) is more accurate. Pharmacy managers can use cost-accounting systems to evaluate the pharmacy's strategies, policies, and services and to improve budgets and reports.

Analisis Perhitungan Harga Pokok Produksi Dengan Metode Tradisional Dan Activity Based Costing (ABC) Pada Ud. Cella Cake Dan Bakery Manado

OpenAIRE

Kamasih, Jimmy; Saerang, David. P. E; Mawikere, Lidya

2015-01-01

Activity Based Costing System can provide information for the better of cost calculation and can assist management to manage the company efficiently and gain a better understanding on competitive advantages, strengths, and weaknesses of the company. So that with Activity Based Costing can present carefully the information of cost product and accurately to the interests of management and comparing the cost calculation of production by using traditional methods and Activity Based Costing (ABC) ...

Low-Cost IoT: A Holistic Approach

Directory of Open Access Journals (Sweden)

Augusto Ciuffoletti

2018-05-01

Full Text Available The key factors for a successful smart-city project are its initial cost and its scalability. The initial cost depends on several inter-related aspects that cannot be designed and optimized separately. After the pilot deployment, scaling-up takes place only if the cost remains affordable: an initial financial support may induce dependencies from technologies that become unsustainable in the long period. In addition, the initial adoption of an emerging technology that fails to affirm may jeopardize investment return. This paper investigates a smart-village use case, the success of which strongly depends on the initial cost and scalability, exploring a low-cost way for Internet of Things (IoT. We propose a simple conceptual framework for cost evaluation, and we verify its effectiveness with an exhaustive use case: a prototype sensor designed and tested with its surrounding eco-system. Using experimental results, we can estimate both performance and cost for a pilot system made of fifty sensors deployed in an urban area. We show that such cost grows linearly with system size, taking advantage of widely adopted technologies. The code and the design of the prototype are available, so that all steps are reproducible.

Low-Cost Bluetooth Mobile Positioning for Location-based Application

OpenAIRE

Barahim, Zaafir; Doomun, M. Razvi; Joomun, Nazrana

2012-01-01

Bluetooth is a promising short-range radio network technology. We present a low cost and easily deployed, scalable infrastructure for indoor location-based computing of mobile devices based on Bluetooth technology. The system consists of 2 main components, namely the Bluetooth (BT) Sensor System and the Central Navigation System which have been developed using the JDK 6.0. The Bluetooth Sensor System allows mobile devices whose Bluetooth mode is set to discoverable, to be scanned and detected...

Utilizing time-driven activity-based costing to understand the short- and long-term costs of treating localized, low-risk prostate cancer.

Science.gov (United States)

Laviana, Aaron A; Ilg, Annette M; Veruttipong, Darlene; Tan, Hung-Jui; Burke, Michael A; Niedzwiecki, Douglas R; Kupelian, Patrick A; King, Chris R; Steinberg, Michael L; Kundavaram, Chandan R; Kamrava, Mitchell; Kaplan, Alan L; Moriarity, Andrew K; Hsu, William; Margolis, Daniel J A; Hu, Jim C; Saigal, Christopher S

2016-02-01

Given the costs of delivering care for men with prostate cancer remain poorly described, this article reports the results of time-driven activity-based costing (TDABC) for competing treatments of low-risk prostate cancer. Process maps were developed for each phase of care from the initial urologic visit through 12 years of follow-up for robotic-assisted laparoscopic prostatectomy (RALP), cryotherapy, high-dose rate (HDR) and low-dose rate (LDR) brachytherapy, intensity-modulated radiation therapy (IMRT), stereotactic body radiation therapy (SBRT), and active surveillance (AS). The last modality incorporated both traditional transrectal ultrasound (TRUS) biopsy and multiparametric-MRI/TRUS fusion biopsy. The costs of materials, equipment, personnel, and space were calculated per unit of time and based on the relative proportion of capacity used. TDABC for each treatment was defined as the sum of its resources. Substantial cost variation was observed at 5 years, with costs ranging from $7,298 for AS to $23,565 for IMRT, and they remained consistent through 12 years of follow-up. LDR brachytherapy ($8,978) was notably cheaper than HDR brachytherapy ($11,448), and SBRT ($11,665) was notably cheaper than IMRT, with the cost savings attributable to shorter procedure times and fewer visits required for treatment. Both equipment costs and an inpatient stay ($2,306) contributed to the high cost of RALP ($16,946). Cryotherapy ($11,215) was more costly than LDR brachytherapy, largely because of increased single-use equipment costs ($6,292 vs $1,921). AS reached cost equivalence with LDR brachytherapy after 7 years of follow-up. The use of TDABC is feasible for analyzing cancer services and provides insights into cost-reduction tactics in an era focused on emphasizing value. By detailing all steps from diagnosis and treatment through 12 years of follow-up for low-risk prostate cancer, this study has demonstrated significant cost variation between competing treatments. © 2015

A Cost Benefit Analysis of an Accelerator Driven Transmutation System

International Nuclear Information System (INIS)

Westlen, D.; Gudowski, W.; Wallenius, J.; Tucek, K.

2002-01-01

This paper estimates the economical costs and benefits associated with a nuclear waste transmutation strategy. An 800 MWth, fast neutron spectrum, subcritical core design has been used in the study (the so called Sing-Sing Core). Three different fuel cycle scenarios have been compared. The main purpose of the paper has been to identify the cost drivers of a partitioning and transmutation strategy, and to estimate the cost of electricity generated in a nuclear park with operating accelerator driven systems. It has been found that directing all transuranic discharges from spent light water reactor (LWR) uranium oxide (UOX) fuel to accelerator driven systems leads to a cost increase for nuclear power of 50±15%, while introduction of a mixed oxide (MOX) burning step in the LWRs diminishes the cost penalty to 35±10%. (authors)

Evaluation of Uniform Cost Accounting System to Fully Capture Depot Level Repair Costs.

Science.gov (United States)

1985-12-01

RD-RI65 522 EVALUATION OF UNIFORM COST ACCOUNTING SYSTEM TO FULLY i/I CAPTURE DEPOT LEVEL REPAIR COSTS (U) NAVAL POSTGRADUATE SCHOOL MONTEREY CA D R...8217.LECTE B ,- THESIS EVALUATION OF UNIFORM COST ACCOUNTING SYSTEM 0TO FULLY CAPTURE DEPOT LEVEL REPAIR COSTS Jby __jDavid Richmond O’Brien lj,,, December...Include Security Classification) EVALUATION OF UNIFORM COST ACCOUNTING SYSTEM TO FULLY CAPTURE DEPOT LEVEL REPAIR COSTS 12 PERSONAL AUTHOR(S) O’Brien- David

The Application of Activity-based Costing (ABC) and Job Order Costing (JOC) at Wisata Bahari Restaurant Manado

OpenAIRE

Pangemanan, Sifrid; Ramintang, Jessica

2016-01-01

ABC is used to determine more accurate product costs by tracing activities required, especially for the purpose of decision making. ABC can show to management about the high cost of low-volume products. Smokie Crab and Grilled Squid from Wisata Bahari Restaurant, Manado, are the sample. The purpose of this research is make more accurate calculation of the cost, which can provide information on the cost of production is more clear for owner of Wisata Bahari Restaurant Manado, so as to obtain ...

Parametric cost analysis of a HYLIFE-II power plant

International Nuclear Information System (INIS)

Bieri, R.L.

1991-01-01

The SAFIRE (Systems Analysis for ICF Reactor Economics) code was adapted to model a power plant using a HYLIFE-2 reactor chamber. The code was then used to examine the dependence of the plant capital costs and the busbar cost of electricity (COE) on a variety of design parameters (type of driver, chamber repetition rate, and net electric power). The results show the most attractive operating space for each set of driver/target assumptions and quantify the benefits of improvements in key design parameters. The base-case plant was a 1000-MW(e) plant containing a reactor vessel driven by an induction linac heavy-ion accelerator, run at 8 Hz with a driver energy of 6.73 MJ and a target yield of 350 MJ. The total direct cost for this plant was $2.6 billion. (All costs in this paper are given in equivalent 1988 dollars.) The COE was 8.5 cents/(kWh). The COE and total capital costs for a 1000-MW(e) base plant are nearly independent of the chosen combination of repetition rate and driver energy for a driver operating between 4 and 10 Hz. For comparison, the COE for a coal or future fission plant would be 4.5--5.5 cents/(kWh). The COE for a 1000-MW(e) plant could be reduced to 7.5 cents/(kWh) by using advanced targets and could be cut to 6.5 cents/(kWh) with conventional targets, if the driver cost could be cut in half. There is a large economy of scale with heavy-ion-driven inertial confinement fusion (ICF) plants. A 2000-MW(e) plant with a heavy-ion driver and a HYLIFE-2 chamber would have a COE of only 5.8 cents/(kWh)

Implementation and Utilisation of Activity-Based-Costing: A Danish Perspective

DEFF Research Database (Denmark)

Nielsen, Steen; Sørensen, René; Jakobsen, Morten

2004-01-01

The Activity-Based Costing (ABC) has achieved great attention in Denmark by now but no large survey exists concerning motives for implementing ABC in Denmark. Characteristic of the present situation is the lack of information concerning the current state of cost ac-counting practice. This paper...... latent variables cannot be directly measured. Different variables related to relevance, size of the company, and sources for knowledge of ABC are tested. The findings show that a relatively large number of companies now have adopted ABC as a new cost management technique. The results also show...

Activity-based costing as a method for assessing the economics of modularization

DEFF Research Database (Denmark)

Thyssen, Jesper; Israelsen, Poul; Jørgensen, Brian

2006-01-01

The paper accounts for an Activity-Based Costing (ABC) analysis supporting decision-making concerning product modularity. The ABC analysis carried out is communicated to decision-makers by telling how much higher the variable cost of the multi-purpose module can be compared to the average variable...... cost for the product-unique modules that it substitutes to break even in total cost. The analysis provides the platform for stating three general rules of cost efficiency of modularization, which in combination identify the highest profit potential of product modularization. Finally the analysis points...... to problems of using ABC in costing modularity, i.e. handling of R&D costs and identification of product profitability upon an enhanced modularization....

Application of activity-based costing (ABC) for a Peruvian NGO healthcare provider.

Science.gov (United States)

Waters, H; Abdallah, H; Santillán, D

2001-01-01

This article describes the application of activity-based costing (ABC) to calculate the unit costs of the services for a health care provider in Peru. While traditional costing allocates overhead and indirect costs in proportion to production volume or to direct costs, ABC assigns costs through activities within an organization. ABC uses personnel interviews to determine principal activities and the distribution of individual's time among these activities. Indirect costs are linked to services through time allocation and other tracing methods, and the result is a more accurate estimate of unit costs. The study concludes that applying ABC in a developing country setting is feasible, yielding results that are directly applicable to pricing and management. ABC determines costs for individual clinics, departments and services according to the activities that originate these costs, showing where an organization spends its money. With this information, it is possible to identify services that are generating extra revenue and those operating at a loss, and to calculate cross subsidies across services. ABC also highlights areas in the health care process where efficiency improvements are possible. Conclusions about the ultimate impact of the methodology are not drawn here, since the study was not repeated and changes in utilization patterns and the addition of new clinics affected applicability of the results. A potential constraint to implementing ABC is the availability and organization of cost information. Applying ABC efficiently requires information to be readily available, by cost category and department, since the greatest benefits of ABC come from frequent, systematic application of the methodology in order to monitor efficiency and provide feedback for management. The article concludes with a discussion of the potential applications of ABC in the health sector in developing countries.

Activity-based Costing dan Simulated Annealing untuk Pencarian Rute pada Flexible Manufacturing Systems

OpenAIRE

Budhi, Gregorius Satia

2003-01-01

In Bahasa Indonesia : Flexible Manufacturing System (FMS) adalah sistem manufaktur yang tersusun dari mesin-mesin Numerical Control (NC) yang dikombinasi dengan Sistem Penanganan Material, sehingga job-job berbeda dikerjakan oleh mesin-mesin dengan alur yang berlainan. FMS menggabungkan produktifitas dan fleksibilitas yang tinggi dari Sistem Manufaktur Transfer Line dan Job Shop. Pada riset ini pendekatan Activity-Based Costing (ABC) digunakan sebagai bobot / weight dalam pencarian ru...

DUCKS: Low cost thermal monitoring units for near-vent deployment

Science.gov (United States)

Harris, Andrew; Pirie, Dawn; Horton, Keith; Garbeil, Harold; Pilger, Eric; Ramm, Hans; Hoblitt, Rick; Thornber, Carl; Ripepe, Maurizio; Marchetti, Emanuele; Poggi, Pasquale

2005-05-01

During 1999 we designed and tested a thermal monitoring system to provide a cheap, robust, modular, real-time system capable of surviving the hostile conditions encountered proximal to active volcanic vents. In November 2000 the first system was deployed at Pu'u 'O'o (Kilauea, Hawai'i) to target persistently active vents. Aside from some minor problems, such as sensor damage due to tampering, this system remained operational until January 2004. The success of the prototype system led us to use the blueprint for a second installation at Stromboli (Aeolian Islands, Italy). This was deployed, dug into a bomb-proof bunker, during May 2002 and survived the April 2003 paroxysmal eruption despite being located just 250 m from the vent. In both cases, careful waterproofing of connectors and selection of suitable protection has prevented water damage and corrosion in the harsh atmosphere encountered at the crater rim. The Pu'u 'O'o system cost ˜US10,000 and comprises four modules: sensors, transmission and power hub, repeater station and reception site. The sensor component consists of three thermal infrared thermometers housed in Pelican™ cases fitted with Germanium-Arsenide-Selenium windows. Two 1° field of view (FOV) sensors allow specific vents to be targeted and a 60° FOV sensor provides a crater floor overview. A hard wire connection links to a Pelican™-case-housed microprocessor, modem and power module. From here data are transmitted, via a repeater site, to a dedicated PC at the Hawaiian Volcano Observatory. Here data are displayed with a delay of ˜3 s between acquisition and display. The modular design allows for great flexibility. At Stromboli, 1° and 15° FOV sensor modules can be switched depending changes in activity style and crater geometry. In addition a direct line of site to the Stromboli reception center negates the repeater site requirement, reducing the cost to US5500 for a single sensor system. We have also constructed self-contained units

DUCKS: Low cost thermal monitoring units for near-vent deployment

Science.gov (United States)

Harris, A.; Pirie, D.; Horton, K.; Garbeil, H.; Pilger, E.; Ramm, H.; Hoblitt, R.; Thornber, C.; Ripepe, M.; Marchetti, E.; Poggi, P.

2005-01-01

During 1999 we designed and tested a thermal monitoring system to provide a cheap, robust, modular, real-time system capable of surviving the hostile conditions encountered proximal to active volcanic vents. In November 2000 the first system was deployed at Pu'u 'O'o (Kilauea, Hawai'i) to target persistently active vents. Aside from some minor problems, such as sensor damage due to tampering, this system remained operational until January 2004. The success of the prototype system led us to use the blueprint for a second installation at Stromboli (Aeolian Islands, Italy). This was deployed, dug into a bomb-proof bunker, during May 2002 and survived the April 2003 paroxysmal eruption despite being located just 250 m from the vent. In both cases, careful waterproofing of connectors and selection of suitable protection has prevented water damage and corrosion in the harsh atmosphere encountered at the crater rim. The Pu'u 'O'o system cost ???US$10,000 and comprises four modules: sensors, transmission and power hub, repeater station and reception site. The sensor component consists of three thermal infrared thermometers housed in Pelican??? cases fitted with Germanium-Arsenide-Selenium windows. Two 1?? field of view (FOV) sensors allow specific vents to be targeted and a 60?? FOV sensor provides a crater floor overview. A hard wire connection links to a Pelican???-case-housed microprocessor, modem and power module. From here data are transmitted, via a repeater site, to a dedicated PC at the Hawaiian Volcano Observatory. Here data are displayed with a delay of ???3 s between acquisition and display. The modular design allows for great flexibility. At Stromboli, 1?? and 15?? FOV sensor modules can be switched depending changes in activity style and crater geometry. In addition a direct line of site to the Stromboli reception center negates the repeater site requirement, reducing the cost to US$5500 for a single sensor system. We have also constructed self-contained units

Development of hospital data warehouse for cost analysis of DPC based on medical costs.

Science.gov (United States)

Muranaga, F; Kumamoto, I; Uto, Y

2007-01-01

To develop a data warehouse system for cost analysis, based on the categories of the diagnosis procedure combination (DPC) system, in which medical costs were estimated by DPC category and factors influencing the balance between costs and fees. We developed a data warehouse system for cost analysis using data from the hospital central data warehouse system. The balance data of patients who were discharged from Kagoshima University Hospital from April 2003 to March 2005 were determined in terms of medical procedure, cost per day and patient admission in order to conduct a drill-down analysis. To evaluate this system, we analyzed cash flow by DPC category of patients who were categorized as having malignant tumors and whose DPC category was reevaluated in 2004. The percentages of medical expenses were highest in patients with acute leukemia, non-Hodgkin's lymphoma, and particularly in patients with malignant tumors of the liver and intrahepatic bile duct. Imaging tests degraded the percentages of medical expenses in Kagoshima University Hospital. These results suggested that cost analysis by patient is important for hospital administration in the inclusive evaluation system using a case-mix index such as DPC.

As Easy as ABC: Re-engineering the Cost Accounting System.

Science.gov (United States)

Trussel, John M.; Bitner, Larry N.

1996-01-01

To be useful for management decision making, the college or university's cost accounting system must capture and measure improvements. Activity-based costing (ABC), which determines more accurately the full costs of services and products, tracks improvements and should proceed alongside reengineering of institutional accounting. Guidelines are…

Cost analysis of nucleic acid amplification for diagnosing pulmonary tuberculosis, within the context of the Brazilian Unified Health Care System.

Science.gov (United States)

Pinto, Márcia; Entringer, Aline Piovezan; Steffen, Ricardo; Trajman, Anete

2015-01-01

We estimated the costs of a molecular test for Mycobacterium tuberculosis and resistance to rifampin (Xpert MTB/RIF) and of smear microscopy, within the Brazilian Sistema Único de Saúde (SUS, Unified Health Care System). In SUS laboratories in the cities of Rio de Janeiro and Manaus, we performed activity-based costing and micro-costing. The mean unit costs for Xpert MTB/RIF and smear microscopy were R$35.57 and R$14.16, respectively. The major cost drivers for Xpert MTB/RIF and smear microscopy were consumables/reagents and staff, respectively. These results might facilitate future cost-effectiveness studies and inform the decision-making process regarding the expansion of Xpert MTB/RIF use in Brazil.

Cost-based droop scheme with lower generation costs for microgrids

DEFF Research Database (Denmark)

Nutkani, Inam Ullah; Loh, Poh Chiang; Blaabjerg, Frede

2014-01-01

-based droop scheme, whose objective is to reduce a generation cost function realised with various DG operating characteristics taken into consideration. Where desired, proportional power sharing based on the DG kVA ratings can also be included, whose disadvantage is a slightly higher generation cost, which...... on the DG kilovolts ampere (kVA) ratings. Other factors like generation costs, efficiencies and emission penalties at different load demands have not been considered. This omission might not be appropriate if different types of DGs are present in the microgrids. As an alternative, this study proposes a cost...... is still lower than that produced by the traditional droop schemes. The proposed droop scheme therefore retains all advantages of the traditional droop schemes, whereas at the same time, keeps its generation cost low. These findings have been validated in experiments....

Combining Time-Driven Activity-Based Costing with Clinical Outcome in Cost-Effectiveness Analysis to Measure Value in Treatment of Depression.

Science.gov (United States)

El Alaoui, Samir; Lindefors, Nils

2016-01-01

A major challenge of mental health care is to provide safe and effective treatment with limited resources. The main purpose of this study was to examine a value-based approach in clinical psychiatry when evaluating a process improvement initiative. This was accomplished by using the relatively new time driven activity based costing (TDABC) method within the more widely adopted cost-effectiveness analysis framework for economic evaluation of healthcare technologies. The objective was to evaluate the cost-effectiveness of allowing psychologists to perform post-treatment assessment previously performed by psychiatrists at an outpatient clinic treating depression using internet-based cognitive-behavioral therapy (ICBT). Data was collected from 568 adult patients treated with ICBT for depression during 2013-2014. The TDABC methodology was used to estimate total healthcare costs, including development of process maps for the complete cycle of care and estimation of resource use and minute costs of staff, hospital space and materials based on their relative proportions used. Clinical outcomes were measured using the Patient Health Questionnaire depression scale (PHQ-9) before and after treatment and at 6-month follow-up. Cost-effectiveness analyses (CEA) was performed and the results presented as incremental net benefits (INB), cost-effectiveness acceptability curves (CEACs) and confidence ellipses to demonstrate uncertainty around the value of the organizational intervention. Taking into account the complete healthcare process (from referral to follow-up assessment), treatment costs decreased from $709 (SD = $130) per patient in 2013 to $659 (SD = $134) in 2014 while treatment effectiveness was maintained; 27% had achieved full remission from depression after treatment (PHQ-9 cost-effectiveness plane at both post-treatment and at follow-up, indicating that the ICBT treatment was less costly and equally effective after staff reallocation. Treating patients to the target

Decommissioning costing approach based on the standardised list of costing items. Lessons learnt by the OMEGA computer code

International Nuclear Information System (INIS)

Daniska, Vladimir; Rehak, Ivan; Vasko, Marek; Ondra, Frantisek; Bezak, Peter; Pritrsky, Jozef; Zachar, Matej; Necas, Vladimir

2011-01-01

The document 'A Proposed Standardised List of Items for Costing Purposes' was issues in 1999 by OECD/NEA, IAEA and European Commission (EC) for promoting the harmonisation in decommissioning costing. It is a systematic list of decommissioning activities classified in chapters 01 to 11 with three numbered levels. Four cost group are defined for cost at each level. Document constitutes the standardised matrix of decommissioning activities and cost groups with definition of content of items. Knowing what is behind the items makes the comparison of cost for decommissioning projects transparent. Two approaches are identified for use of the standardised cost structure. First approach converts the cost data from existing specific cost structures into the standardised cost structure for the purpose of cost presentation. Second approach uses the standardised cost structure as the base for the cost calculation structure; the calculated cost data are formatted in the standardised cost format directly; several additional advantages may be identified in this approach. The paper presents the costing methodology based on the standardised cost structure and lessons learnt from last ten years of the implementation of the standardised cost structure as the cost calculation structure in the computer code OMEGA. Code include also on-line management of decommissioning waste, decay of radioactively, evaluation of exposure, generation and optimisation of the Gantt chart of a decommissioning project, which makes the OMEGA code an effective tool for planning and optimisation of decommissioning processes. (author)

Wind Integration Cost and Cost-Causation: Preprint

Energy Technology Data Exchange (ETDEWEB)

Milligan, M.; Kirby, B.; Holttinen, H.; Kiviluoma, J.; Estanqueiro, A.; Martin-Martinez, S.; Gomez-Lazaro, E.; Peneda, I.; Smith, C.

2013-10-01

The question of wind integration cost has received much attention in the past several years. The methodological challenges to calculating integration costs are discussed in this paper. There are other sources of integration cost unrelated to wind energy. A performance-based approach would be technology neutral, and would provide price signals for all technology types. However, it is difficult to correctly formulate such an approach. Determining what is and is not an integration cost is challenging. Another problem is the allocation of system costs to one source. Because of significant nonlinearities, this can prove to be impossible to determine in an accurate and objective way.

The cost of preventing undernutrition: cost, cost-efficiency and cost-effectiveness of three cash-based interventions on nutrition outcomes in Dadu, Pakistan.

Science.gov (United States)

Trenouth, Lani; Colbourn, Timothy; Fenn, Bridget; Pietzsch, Silke; Myatt, Mark; Puett, Chloe

2018-07-01

Cash-based interventions (CBIs) increasingly are being used to deliver humanitarian assistance and there is growing interest in the cost-effectiveness of cash transfers for preventing undernutrition in emergency contexts. The objectives of this study were to assess the costs, cost-efficiency and cost-effectiveness in achieving nutrition outcomes of three CBIs in southern Pakistan: a 'double cash' (DC) transfer, a 'standard cash' (SC) transfer and a 'fresh food voucher' (FFV) transfer. Cash and FFVs were provided to poor households with children aged 6-48 months for 6 months in 2015. The SC and FFV interventions provided $14 monthly and the DC provided $28 monthly. Cost data were collected via institutional accounting records, interviews, programme observation, document review and household survey. Cost-effectiveness was assessed as cost per case of wasting, stunting and disability-adjusted life year (DALY) averted. Beneficiary costs were higher for the cash groups than the voucher group. Net total cost transfer ratios (TCTRs) were estimated as 1.82 for DC, 2.82 for SC and 2.73 for FFV. Yet, despite the higher operational costs, the FFV TCTR was lower than the SC TCTR when incorporating the participation cost to households, demonstrating the relevance of including beneficiary costs in cost-efficiency estimations. The DC intervention achieved a reduction in wasting, at $4865 per case averted; neither the SC nor the FFV interventions reduced wasting. The cost per case of stunting averted was $1290 for DC, $882 for SC and $883 for FFV. The cost per DALY averted was $641 for DC, $434 for SC and $563 for FFV without discounting or age weighting. These interventions are highly cost-effective by international thresholds. While it is debatable whether these resource requirements represent a feasible or sustainable investment given low health expenditures in Pakistan, these findings may provide justification for continuing Pakistan's investment in national social safety

The Effect of Activity-Based Costing on Logistics Management

Science.gov (United States)

1993-01-01

Accounting Horizons, Vol. 6, No. 3, September 1992, pp. 1-13. 38. Cooper, Robin and Robert S . Kaplan, The Design of Cost Management Systems...Englewood Cliffs, NJ: Prentice Hall, 1991. 370 39. Cooper, Robin and Robert S . Kaplan, "How Cost Accounting Distorts Product Costs ," Management Accounting ... Cost /Management Accounting ," Management Accounting , Vol. 72, No. 4, pp. 48- 52. 58. Foster, George and Charles T. Horngren , "Flexible

Using time-driven activity-based costing to identify value improvement opportunities in healthcare.

Science.gov (United States)

Kaplan, Robert S; Witkowski, Mary; Abbott, Megan; Guzman, Alexis Barboza; Higgins, Laurence D; Meara, John G; Padden, Erin; Shah, Apurva S; Waters, Peter; Weidemeier, Marco; Wertheimer, Sam; Feeley, Thomas W

2014-01-01

As healthcare providers cope with pricing pressures and increased accountability for performance, they should be rededicating themselves to improving the value they deliver to their patients: better outcomes and lower costs. Time-driven activity-based costing offers the potential for clinicians to redesign their care processes toward that end. This costing approach, however, is new to healthcare and has not yet been systematically implemented and evaluated. This article describes early time-driven activity-based costing work at several leading healthcare organizations in the United States and Europe. It identifies the opportunities they found to improve value for patients and demonstrates how this costing method can serve as the foundation for new bundled payment reimbursement approaches.

The System Cost Model: A tool for life cycle cost and risk analysis

International Nuclear Information System (INIS)

Hsu, K.; Lundeen, A.; Shropshire, D.; Sherick, M.

1996-01-01

In May of 1994, Lockheed Idaho Technologies Company (LITCO) in Idaho Falls, Idaho and subcontractors began development of the System Cost Model (SCM) application. The SCM estimates life cycle costs of the entire US Department of Energy (DOE) complex for designing; constructing; operating; and decommissioning treatment, storage, and disposal (TSD) facilities for mixed low-level, low-level, and transuranic waste. The SCM uses parametric cost functions to estimate life cycle costs for various treatment, storage, and disposal modules which reflect planned and existing waste management facilities at DOE installations. In addition, SCM can model new TSD facilities based on capacity needs over the program life cycle. The user can provide input data (default data is included in the SCM) including the volume and nature of waste to be managed, the time period over which the waste is to be managed, and the configuration of the waste management complex (i.e., where each installation's generated waste will be treated, stored, and disposed). Then the SCM uses parametric cost equations to estimate the costs of pre-operations (designing), construction, operations and maintenance, and decommissioning these waste management facilities. The SCM also provides transportation costs for DOE wastes. Transportation costs are provided for truck and rail and include transport of contact-handled, remote-handled, and alpha (transuranic) wastes. A complement to the SCM is the System Cost Model-Risk (SCM-R) model, which provides relative Environmental, Safety, and Health (ES and H) risk information. A relative ES and H risk basis has been developed and applied by LITCO at the INEL. The risk basis is now being automated in the SCM-R to facilitate rapid risk analysis of system alternatives. The added risk functionality will allow combined cost and risk evaluation of EM alternatives

Cost drivers for voluntary medical male circumcision using primary source data from sub-Saharan Africa.

Science.gov (United States)

Bollinger, Lori; Adesina, Adebiyi; Forsythe, Steven; Godbole, Ramona; Reuben, Elan; Njeuhmeli, Emmanuel

2014-01-01

As voluntary medical male circumcision (VMMC) programs scale up, there is a pressing need for information about the important cost drivers, and potential efficiency gains. We examine those cost drivers here, and estimate the potential efficiency gains through an econometric model. We examined the main cost drivers (i.e., personnel and consumables) associated with providing VMMC in sub-Saharan Africa along a number of dimensions, including facility type and service provider. Primary source facility level data from Kenya, Namibia, South Africa, Tanzania, Uganda, and Zambia were utilized throughout. We estimated the efficiency gains by econometrically estimating a cost function in order to calculate the impact of scale and other relevant factors. Personnel and consumables were estimated at 36% and 28%, respectively, of total costs across countries. Economies of scale (EOS) is estimated to be eight at the median volume of VMMCs performed, and EOS falls from 23 at the 25th percentile volume of VMMCs performed to 5.1 at the 75th percentile. The analysis suggests that there is significant room for efficiency improvement as indicated by declining EOS as VMMC volume increases. The scale of the fall in EOS as VMMC volume increases suggests that we are still at the ascension phase of the scale-up of VMMC, where continuing to add new sites results in additional start-up costs as well. A key aspect of improving efficiency is task sharing VMMC procedures, due to the large percentage of overall costs associated with personnel costs. In addition, efficiency improvements in consumables are likely to occur over time as prices and distribution costs decrease.

Cost drivers for voluntary medical male circumcision using primary source data from sub-Saharan Africa.

Directory of Open Access Journals (Sweden)

Lori Bollinger

Full Text Available As voluntary medical male circumcision (VMMC programs scale up, there is a pressing need for information about the important cost drivers, and potential efficiency gains. We examine those cost drivers here, and estimate the potential efficiency gains through an econometric model.We examined the main cost drivers (i.e., personnel and consumables associated with providing VMMC in sub-Saharan Africa along a number of dimensions, including facility type and service provider. Primary source facility level data from Kenya, Namibia, South Africa, Tanzania, Uganda, and Zambia were utilized throughout. We estimated the efficiency gains by econometrically estimating a cost function in order to calculate the impact of scale and other relevant factors. Personnel and consumables were estimated at 36% and 28%, respectively, of total costs across countries. Economies of scale (EOS is estimated to be eight at the median volume of VMMCs performed, and EOS falls from 23 at the 25th percentile volume of VMMCs performed to 5.1 at the 75th percentile.The analysis suggests that there is significant room for efficiency improvement as indicated by declining EOS as VMMC volume increases. The scale of the fall in EOS as VMMC volume increases suggests that we are still at the ascension phase of the scale-up of VMMC, where continuing to add new sites results in additional start-up costs as well. A key aspect of improving efficiency is task sharing VMMC procedures, due to the large percentage of overall costs associated with personnel costs. In addition, efficiency improvements in consumables are likely to occur over time as prices and distribution costs decrease.

When to "Fire" Customers: Customer Cost-Based Pricing

OpenAIRE

Jiwoong Shin; K. Sudhir; Dae-Hee Yoon

2012-01-01

The widespread adoption of activity-based costing enables firms to allocate common service costs to each customer, allowing for precise measurement of both the cost to serve a particular customer and the customer's profitability. In this paper, we investigate how pricing strategies based on customer cost information affects a firm's customer acquisition and retention dynamics, and ultimately its profit, using a two-period monopoly model with high- and low-cost customer segments. Although past...

Time-driven activity-based costing in health care: A systematic review of the literature.

Science.gov (United States)

Keel, George; Savage, Carl; Rafiq, Muhammad; Mazzocato, Pamela

2017-07-01

Health care organizations around the world are investing heavily in value-based health care (VBHC), and time-driven activity-based costing (TDABC) has been suggested as the cost-component of VBHC capable of addressing costing challenges. The aim of this study is to explore why TDABC has been applied in health care, how its application reflects a seven-step method developed specifically for VBHC, and implications for the future use of TDABC. This is a systematic review following the PRISMA statement. Qualitative methods were employed to analyze data through content analyses. TDABC is applicable in health care and can help to efficiently cost processes, and thereby overcome a key challenge associated with current cost-accounting methods The method's ability to inform bundled payment reimbursement systems and to coordinate delivery across the care continuum remains to be demonstrated in the published literature, and the role of TDABC in this cost-accounting landscape is still developing. TDABC should be gradually incorporated into functional systems, while following and building upon the recommendations outlined in this review. In this way, TDABC will be better positioned to accurately capture the cost of care delivery for conditions and to control cost in the effort to create value in health care. Copyright © 2017 The Authors. Published by Elsevier B.V. All rights reserved.

Cost and cost-effectiveness of tuberculosis treatment shortening: a model-based analysis.

Science.gov (United States)

Gomez, G B; Dowdy, D W; Bastos, M L; Zwerling, A; Sweeney, S; Foster, N; Trajman, A; Islam, M A; Kapiga, S; Sinanovic, E; Knight, G M; White, R G; Wells, W A; Cobelens, F G; Vassall, A

2016-12-01

Despite improvements in treatment success rates for tuberculosis (TB), current six-month regimen duration remains a challenge for many National TB Programmes, health systems, and patients. There is increasing investment in the development of shortened regimens with a number of candidates in phase 3 trials. We developed an individual-based decision analytic model to assess the cost-effectiveness of a hypothetical four-month regimen for first-line treatment of TB, assuming non-inferiority to current regimens of six-month duration. The model was populated using extensive, empirically-collected data to estimate the economic impact on both health systems and patients of regimen shortening for first-line TB treatment in South Africa, Brazil, Bangladesh, and Tanzania. We explicitly considered 'real world' constraints such as sub-optimal guideline adherence. From a societal perspective, a shortened regimen, priced at USD1 per day, could be a cost-saving option in South Africa, Brazil, and Tanzania, but would not be cost-effective in Bangladesh when compared to one gross domestic product (GDP) per capita. Incorporating 'real world' constraints reduces cost-effectiveness. Patient-incurred costs could be reduced in all settings. From a health service perspective, increased drug costs need to be balanced against decreased delivery costs. The new regimen would remain a cost-effective option, when compared to each countries' GDP per capita, even if new drugs cost up to USD7.5 and USD53.8 per day in South Africa and Brazil; this threshold was above USD1 in Tanzania and under USD1 in Bangladesh. Reducing the duration of first-line TB treatment has the potential for substantial economic gains from a patient perspective. The potential economic gains for health services may also be important, but will be context-specific and dependent on the appropriate pricing of any new regimen.

APPLICABILITY OF ACTIVITY BASED COSTING IN NEW PRODUCT DEVELOPMENT PROCESSES

Directory of Open Access Journals (Sweden)

Ewa Wanda MARUSZEWSKA

2015-01-01

Full Text Available The purpose of the article is to emphasis that activity based costing is a proper tool for engineers to enhance their deci-sion-making process while developing new product. The theoretical analysis shows that variety of factors shall be en-compassed into new product decision-making process and therefore engineers and management should pay great attention to proper cost allocation. The paper suggests the usage of Activity Based Costing methodology for new product development decision-making process. Author states that application ABC in the process of rational decision-making referring to new product development enables managers and engineers to prioritize possible solutions, and reallocate resources used in production process in order to meet wider organizational goals. It would also contribute in coopera-tion of managers and engineers for the sake of organizational goal.

A low cost PSD-based monocular motion capture system

Science.gov (United States)

Ryu, Young Kee; Oh, Choonsuk

2007-10-01

This paper describes a monocular PSD-based motion capture sensor to employ with commercial video game systems such as Microsoft's XBOX and Sony's Playstation II. The system is compact, low-cost, and only requires a one-time calibration at the factory. The system includes a PSD(Position Sensitive Detector) and active infrared (IR) LED markers that are placed on the object to be tracked. The PSD sensor is placed in the focal plane of a wide-angle lens. The micro-controller calculates the 3D position of the markers using only the measured intensity and the 2D position on the PSD. A series of experiments were performed to evaluate the performance of our prototype system. From the experimental results we see that the proposed system has the advantages of the compact size, the low cost, the easy installation, and the high frame rates to be suitable for high speed motion tracking in games.

ABC model and the management of costs

Directory of Open Access Journals (Sweden)

Pravdić Predrag

2016-01-01

Full Text Available When a company has multiple objectives at the same time, they all must be considered and balanced when making any business decisions. Linking the markets, capital and resources so as to thus ensure the highest yield is, In fact, the search for competitive advantage as a basic condition for survival in a market economy. In highly detailed systems based on the management of costs or ABC (activity based costing systems, the cost of activities often result in erroneous evaluation of aggregate costs of the action. Improvements in information technology and monitoring decrease of technology costs enabled the ABC system to become a feasible system calculating costs in many organizations.

Assessment of activity-based pyroprocess costs for an engineering-scale facility in Korea

Energy Technology Data Exchange (ETDEWEB)

Kim, Sung Ki; Ko, Won Il [Nuclear Fuel Cycle Analysis Department, Korea Atomic Energy Research Institute, Daejeon (Korea, Republic of); Bang, Sung Sig [Dept. of Business and Technology Management, Korea Advanced Institute of Science and Technology, Daejeon (Korea, Republic of)

2015-12-15

This study set the pyroprocess facility at an engineering scale as a cost object, and presented the cost consumed during the unit processes of the pyroprocess. For the cost calculation, the activity based costing (ABC) method was used instead of the engineering cost estimation method, which calculates the cost based on the conceptual design of the pyroprocess facility. The calculation results demonstrate that the pyroprocess facility's unit process cost is $194/kgHM for pretreatment, $298/kgHM for electrochemical reduction, $226/kgHM for electrorefining, and $299/kgHM for electrowinning. An analysis demonstrated that the share of each unit process cost among the total pyroprocess cost is as follows: 19% for pretreatment, 29% for electrochemical reduction, 22% for electrorefining, and 30% for electrowinning. The total unit cost of the pyroprocess was calculated at $1,017/kgHM. In the end, electrochemical reduction and the electrowinning process took up most of the cost, and the individual costs for these two processes was found to be similar. This is because significant raw material cost is required for the electrochemical reduction process, which uses platinum as an anode electrode. In addition, significant raw material costs are required, such as for Li3PO4, which is used a lot during the salt purification process.

Defining the value of magnetic resonance imaging in prostate brachytherapy using time-driven activity-based costing.

Science.gov (United States)

Thaker, Nikhil G; Orio, Peter F; Potters, Louis

Magnetic resonance imaging (MRI) simulation and planning for prostate brachytherapy (PBT) may deliver potential clinical benefits but at an unknown cost to the provider and healthcare system. Time-driven activity-based costing (TDABC) is an innovative bottom-up costing tool in healthcare that can be used to measure the actual consumption of resources required over the full cycle of care. TDABC analysis was conducted to compare patient-level costs for an MRI-based versus traditional PBT workflow. TDABC cost was only 1% higher for the MRI-based workflow, and utilization of MRI allowed for cost shifting from other imaging modalities, such as CT and ultrasound, to MRI during the PBT process. Future initiatives will be required to follow the costs of care over longer periods of time to determine if improvements in outcomes and toxicities with an MRI-based approach lead to lower resource utilization and spending over the long-term. Understanding provider costs will become important as healthcare reform transitions to value-based purchasing and other alternative payment models. Copyright © 2016 American Brachytherapy Society. Published by Elsevier Inc. All rights reserved.