The acquisition and elimination of products and the resources needed to create them constitutes an important part of the business decision-making process. Activity-based costing (ABC) supports this process by providing a tool for evaluating the relative profitability of various products. It accomplishes this by allocating costs to products based on the activities, and in turn the resources demanded by those activities, required to produce them. In allocating indirect costs traditionally considered "fixed," such as equipment, administrative overhead, and support staff salaries, ABC treats all costs as variable in the long-run. However, many costs can only vary in discrete steps. For example, one usually cannot purchase a fractional piece of equipment; one chooses either to buy it or not to buy it. Also, in adding support staff, one will typically find that people demand full-time positions, so increments will come in discrete amounts. This stairstep semivariable nature of many costs runs counter to ABC's treatment of all costs as variable. In addition, different products often draw upon the same resources. This creates complex interactions, making it difficult to predict the ultimate consequences of adding or eliminating a particular product. Mixed integer programming (MIP) provides another tool for making these product/resource mix decisions. Unlike ABC, however, it can handle variables that take on integer values, and hence deal appropriately with stairstep semivariable costs. It also ensures that the decision recommended by the model will optimize profitability, given that a solution exists and the underlying assumptions hold true. In doing this, MIP automatically adjusts for all of the complex interactions that exist among the various products and resources. Using a simplified two product/two resource model, one can detail the mathematics behind ABC and MIP, and then link the two approaches through a common variable. This allows one to establish the conditions under which ABC and MIP will yield the same results, and those under which they will differ. Since MW produces an optimal solution, the fact that ABC yields a different result under specific circumstances underscores the danger of relying solely on the product margins generated by an ABC model. / Graduation date: 1998

In the 1960’s, the Japanese car manufacturer Toyota developed target costing – a management accounting model that reduces the risk of releasing unprofitable products. The method eventually spread to Swedish firms. The study starts by summing recent previous research on target costing in Sweden (full description of these studies is available in Appendix I). Looking at this research, it is noted that there is an inconsistency with regards to what principles of target costing are used, and which are not. It is also noted that some firms are claimed to be used target costing and some firms are claimed not to be using it. No study, however, has tried to find an explanation to why some principles are implemented and why some are not. This is also the theoretical contribution of this thesis. More specifically, the research problems are therefore: (1) is target costing really implemented in a different way in Sweden as compared to Japan and (2), if so, why are there differences? It is further assumed that ideology could be a good explaining variable for the possible differences in implementation. In answering the first question, target costing is firstly described according to well-known books and articles on the subject. Following normative description, a presentation is made how target costing has been employed in Sweden. Secondary data based on three quantative studies is used here. These two descriptions are then contrasted against each other and it is found that target costing is implemented in a different way as compared to normative Japanese literature. Next, the second question is answered by constructing a theoretical framework based on ideological- and managerial assumptions of Japan and Sweden, respectively. This framework is then used to try to explain the differences mentioned above. Through the analysis it is observed that the Swedes’ lower priority of financial goal as well as their orientation towards the future are often used to explain the differences. These two aspects are also two of the main differences between Swedish and Japanese ideologies. It is therefore concluded that the differences might be explained using ideological assumptions, although there are probably other important factors as well. An implication of the result is that it is questionable whether target costing even will reach popularity in Sweden. Finally, it is also concluded that Likert-scales are not usefil when measuring target costing implementation

The cost management and control are the important topic that most of enterprise operators have to confront with. Facing the increasing competition in enterprise environment, it is, in active respect, necessary to control the cost effectively in order to gain niche in keen market competition; in positive respect, it is to avoid any error policy decision because of inaccurate cost data. In traditional cost accounting, the allocation method of overhead is incomplete so that it is easier to result a distortion phenomenon in production cost structure. For the past years, the management academic world has proved through detailed study and real application that using the Activity-Based Costing (ABC) System can improve the defect of traditional cost accounting. The reasonable operation analysis and the exact cost driver allocation of ABC System will enhance the accuracy of the cost data. This case study company is a sole integrated steel producer in Taiwan. Due to the diversity of products, the company¡¦s production processes are extremely complicated and varied. The existing cost management system is unable to provide an actual cost under the different processes. Therefore, there is a room for improvement in analyzing the cost sharing of product expenses. This report takes the case study company¡¦s BOF plant as an example to research, by means of the process analysis, how to allocate the cost exactly, and to make a new cost system which can match the spirit of ABC. Meanwhile, this report makes a comparative analysis between the original cost system and ABC one. The result of the research revealed that the ABC cost system may truly improve the phenomenon of distortion of the product cost structure in the case study company. Using ABC cost system may not only promote the accuracy of the cost information, but also enhance the working performance under the activities analysis and control and reduce the waste of resources.

According to Michael Porter¡¦s Competitive Advantage, only through Value Chain Analysis, a company can realize it¡¦s cost behavior and the resources needed for differentiation. Thus the company can optimize its resources usage and increase it¡¦s business activities¡¦ performance. With the Internet environment, economic value for a company is nothing more than the gap between price and cost, and it is reliably measured only by sustained profitability. In e-retailing, e-retailers that want to reach competitive advantage and high economic value must consider how to create real margins, how to measure and manage the cost of e-retailing activities, and execute it in a efficient way to enhance e-retailer¡¦s competitive advantage. This research applies Activity-Based Costing approach to confer e-retailing activities. Value chain analysis is first employed to explore the primary activities of e-retailing. Then the improvement of cost and process are sought from activity analysis, resource cost driver and process cost driver. Finally, the critical e-retailing activities result from the internal value chain analysis. The research results indicated that the price of product and the characteristic of product have different influence on e-retailing activities. In addition, e-retailer want sustained profitability, the finite resource must provide for the customer and product that contribute to e-retailer¡¦s sustained profitability. Finally, the research also indicated that the link of marketing/sales activities and customer service activities are the most critical e-retailing activities. Keyword¡Gvalue chain, e-retailing activities, Activity Based Costing

<p>In the 1960’s, the Japanese car manufacturer Toyota developed target costing – a management accounting model that reduces the risk of releasing unprofitable products. The method eventually spread to Swedish firms.</p><p>The study starts by summing recent previous research on target costing in Sweden (full description of these studies is available in Appendix I). Looking at this research, it is noted that there is an inconsistency with regards to what principles of target costing are used, and which are not. It is also noted that some firms are claimed to be used target costing and some firms are claimed not to be using it. No study, however, has tried to find an explanation to why some principles are implemented and why some are not. This is also the theoretical contribution of this thesis.</p><p>More specifically, the research problems are therefore: (1) is target costing really implemented in a different way in Sweden as compared to Japan and (2), if so, why are there differences? It is further assumed that ideology could be a good explaining variable for the possible differences in implementation.</p><p>In answering the first question, target costing is firstly described according to well-known books and articles on the subject. Following normative description, a presentation is made how target costing has been employed in Sweden. Secondary data based on three quantative studies is used here. These two descriptions are then contrasted against each other and it is found that target costing is implemented in a different way as compared to normative Japanese literature.</p><p>Next, the second question is answered by constructing a theoretical framework based on ideological- and managerial assumptions of Japan and Sweden, respectively. This framework is then used to try to explain the differences mentioned above. Through the analysis it is observed that the Swedes’ lower priority of financial goal as well as their orientation towards the future are often used to explain the differences. These two aspects are also two of the main differences between Swedish and Japanese ideologies.</p><p>It is therefore concluded that the differences might be explained using ideological assumptions, although there are probably other important factors as well. An implication of the result is that it is questionable whether target costing even will reach popularity in Sweden. Finally, it is also concluded that Likert-scales are not usefil when measuring target costing implementation</p>

Thesis (Ph. D. in Engineering - Civil and Environmental Engineering)--University of California, Berkeley, 2008. / "Fall 2008." Includes bibliographical references (p. 272-288). Also avialable online.

Thesis (M.Com.(Financial Management))--University of Pretoria, 2009. / Includes bibliographical references.

In the past decades, while many countries planned and undertook more and bigger infrastructure megaprojects, poor performance has marred their delivery, for example through cost overruns, delays, disputes, and shortfalls in expected benefits. It is therefore important to improve performance levels, especially in infrastructure megaprojects that can considerablely influence the economy, society and environment. Project evaluation is an effective tool in project performance management as it provides stakeholders with a management process through which they can learn from the past and perform better in the future. Most of the traditional evaluation approaches emphasize the three basic success criteria of time, budget and quality. However, with the increasing importance of sustainability criteria and concerns, as well as the growing imperatives for stakeholder engagement, it has already been suggested to reconsider and redefine value by also evaluating other factors, such as those related to the environment and society. Therefore, an integrated whole life cycle value (WLCV) evaluation framework is proposed in order to improve infrastructure megaproject WLCV performance. In this study, whole life cycle (WLC) evaluation has a two-fold meaning: (i) the evaluation is based on a set of value factors drawn from a WLCV system; and (ii) this evaluation is a systematic continuous process from the start to the end of the project. However, considering the unique characteristics of every project, a totally fixed or static structure and content framework is neither sufficient nor suitable for the various types of infrastructure megaprojects. The recommended solution is to develop a semi-flexible framework that enables a pre-determined step by step dynamic structure formulation and a flexible WLCV system. In order to measure project WLCV derived from stakeholders’ expectations, from more objective and persuasive perspectives, the relevant value objectives/criteria/indicators, their weightings and targets will be identified, integrated and developed through this WLCV system. Cross-criteria relationships which have not been addressed adequately before, will be dealt with by assigning appropriate weightings. It is also proposed to build a database to store completed project information including various stakeholders’ expectations expressed in the form of value objectives. In order to develop the above proposed framework, a basic literature review was conducted to reveal and analyze the significant evaluation problems, identify trends in stakeholder engagement and develop the concept as well as typical criteria and indicators of project WLCV. Meanwhile evaluation practices, stakeholder engagement in the process of evaluation and WLCV perspectives in the Hong Kong construction industry were examined through a first round of interviews and the first of two focus group meetings. The first focus group meeting, second round interviews and the second focus group meeting were conducted to improve the proposed framework by investigating the importance of assigning an appropriate weighting to each value objective and each group of stakeholders; elaborating the various value criteria to measure value objectives at appropriate points of a project WLC. The findings from literature reviews, interviews, focus group meetings and a case study were integrated and injected into developing the aforementioned framework for building and administering the evaluation of project WLCV in ways that could improve desired project WLC performance. The outputs of the current research are expected to assist clients of infrastructure megaprojects to build a sense of ownership among all the key stakeholders at the outset, and to help motivate all stakeholders to be more co-operative, with a view to jointly targeting and monitoring an agreed project WLCV, thereby helping to achieve better WLC performance on infrastructure megaprojects. The main contributions to knowledge from this research are in developing a comprehensive evaluation methodology which combines and refines relevant components from existing evaluation approaches as well as injects the WLCV concept and criteria into a more holistic approach that is expected to identify and address current inadequacies in infrastructure megaproject delivery. / published_or_final_version / Civil Engineering / Master / Master of Philosophy

Infectious disease outbreaks can have a significant impact on healthcare resources and are disruptive to routine healthcare programs and services. There is very little literature on the economic burden of infectious disease outbreaks; thus, this research attempts to provide insight into the healthcare resources used to contain a mumps outbreak. The Nova Scotia 2007 mumps outbreak provides an opportunity to produce a costing framework to capture the economic burden an outbreak has on the Nova Scotia healthcare system. The costing framework for this study used an accounting model to costing; in particular, it used an activity-based costing approach. The total mumps outbreak cost is estimated at $2,478,500 or $3,511 per mumps case. Given the significant impact an infectious disease outbreak has on healthcare resources, more economic evaluations should be done to help guide policies around infectious disease prevention strategies, and to maximize the allocation of healthcare resources.

No description available.