Evidence on the Cost Hierarchy: The Association between Resource Consumption and Production Activities

2012 ◽  
Author(s):  
Shannon W. Anderson ◽  
Karen L. Sedatole
Keyword(s):  
Resource Consumption ◽  
The Cost

Pricing Commuter, Intercity, and Freight Trains in a Terminal Railway Context: An Approach

2003 ◽  
Vol 1825 (1) ◽  
pp. 1-7
Author(s):  
Bryan K. Bertie
Keyword(s):  
Cost Model ◽  
Resource Consumption ◽  
Successful Implementation ◽  
Work Effort ◽  
Capital Costs ◽  
Recovery System ◽  
Link Cost ◽  
Sharing Responsibility ◽  
The Cost ◽  
Cross Subsidization

The cost-of-service (or fully allocated cost) pricing model has been criticized in the economics literature. The criticisms generally focus on the issues of cross-subsidization problems from using average costs and economically inefficient pricing. A fully allocated cost model, applied to a terminal railroad setting, is presented that can substantively overcome these criticisms by using a resource consumption approach for key cost drivers. A successful implementation of a new cost recovery system in Toronto, Ontario, Canada, is used that applies these resource consumption concepts. A necessary precondition to this approach is the charting of the classes of traffic (commuter, intercity, and freight) into operated-track segmented paths, each of which consists of a set of one or more track links. Each traffic class path is characterized as either consisting of sole-use links, joint-use links, or a combination thereof. Operating and capital costs directly attributable to the track links are calculated. A reverse engineering work-effort-per-activity approach is used for assigning the total routine maintenance of way and maintenance of signals budget dollars to the terminal track links. The resource consumption approach provides a logical framework and analytical platform for analyzing link infrastructure complexity; system, path, and link capacity; path and link cost performance; and path and link renewal and replacement capital planning and capital sharing responsibility.

scholarly journals Time driven activity based budget in strategic decisions; implementation in a manufacturing company

2015 ◽  
Vol 12 (2) ◽  
pp. 64-73
Author(s):  
Hamide Özyürek
Keyword(s):  
Resource Consumption ◽  
Manufacturing Companies ◽  
Activity Based Costing ◽  
Strategic Decisions ◽  
Manufacturing Company ◽  
Cost Of Time ◽  
The Cost

This study was carried out in order to find out the applicability of time-driven activity based butgeting method at manufacturing companies in Turkey. The results obtained from the application of time driven activity based butgeting system can be summarized briefly as follows. Company makes the application through different processes and different products are sold to different customers. For this reason, resource consumption levels of the products vary. Be taken into account in determining the cost of time consumed in the product gives more accurate results. Down to the cost of the follow-up activities with the factory Time Driven Activity Based Costing it is possible to do. Just when you need to update the equation will be determined and put in place are sufficient

scholarly journals Dynamic Pricing for Resource Consumption in Cloud Service

2018 ◽  
Vol 2018 ◽  
pp. 1-11
Author(s):  
Bin Cao ◽  
Kai Wang ◽  
Jinting Xu ◽  
Chenyu Hou ◽  
Jing Fan ◽  
...  
Keyword(s):  
Dynamic Pricing ◽  
Service Providers ◽  
Cloud Service ◽  
Resource Consumption ◽  
Pricing Model ◽  
Cloud Resource ◽  
The One ◽  
The Cost ◽  
Demand Service ◽  
Cloud Resources

This paper studies dynamic pricing for cloud service where different resources are consumed by different users. The traditional cloud resource pricing models can be divided into two categories: on-demand service and reserved service. The former only takes the using time into account and is unfair for the users with long using time and little concurrency. The latter charges the same price to all the users and does not consider the resource consumption of users. Therefore, in this paper, we propose a flexible dynamic pricing model for cloud resources, which not only takes into account the occupying time and resource consumption of different users but also considers the maximal concurrency of resource consumption. As a result, on the one hand, this dynamic pricing model can help users save the cost of cloud resources. On the other hand, the profits of service providers are guaranteed. The key of the pricing model is how to efficiently calculate the maximal concurrency of resource consumption since the cost of providers is dynamically varied based on the maximal concurrency. To support this function in real time, we propose a data structure based on the classical B+ tree and the implementation for its corresponding basic operations like insertion, deletion, split, and query. Finally, the experiment results show that we can complete the dynamic pricing query on 10 million cloud resource usage records within 0.2 seconds on average.

Quality Cost Analysis Based on PVA and EVA

2012 ◽  
Vol 472-475 ◽  
pp. 3214-3219
Author(s):  
Wei Wei Liu ◽  
Lan Li
Keyword(s):  
Cost Analysis ◽  
Product Quality ◽  
Evaluation System ◽  
Capital Cost ◽  
Resource Consumption ◽  
Quality Cost ◽  
The Cost ◽  
And Control ◽  
The Evaluation System

Based on the relation of the operating resource consumption, the capital cost and the motivation of quality cost, this paper proposed that the cost for improving product quality in the capital cost was regarded as a part of the quality cost, from this the quality cost was re-defined. And in order to distribute and control the quality cost reasonably, the paper based on the evaluation system of EVA, used PVA to assign the quality cost into the various stages of production.

Evidence on the Cost Hierarchy: The Association between Resource Consumption and Production Activities

2012 ◽  
Vol 25 (1) ◽  
pp. 119-141 ◽  
Author(s):  
Shannon W. Anderson ◽  
Karen L. Sedatole
Keyword(s):  
Production Scheduling ◽  
Cost Model ◽  
Product Variety ◽  
Resource Consumption ◽  
Data Availability ◽  
Model Specification ◽  
Variable Cost ◽  
Daily Production ◽  
Data Limitations ◽  
The Cost

ABSTRACT Modern cost accounting posits that manufacturing overhead costs vary with production unit volume, batches of production, and with the variety of products produced. However, many studies fail to find an association between manufacturing overhead costs and activities associated with production batches and product variety; rather, the traditional fixed and (unit) variable cost structure is validated. One explanation is that flexible manufacturing methods and optimized production scheduling restore the relevance of the traditional cost model. Another explanation is that the relation holds, but is not detectable because of limitations of the data used in these studies. We explore the separate and joint impacts of these data limitations using data from a modern float glass manufacturing plant and a new time-driven activity-based costing model suggested by Kaplan and Anderson (2004, 2007). We find that: (1) batch and product-variety-related activities are significantly associated with resource consumption, (2) crude measures of activity promote incorrect conclusions about the strength of the relation between activities and resource consumption, and (3) monthly aggregation of data obscures important aspects of the relation between daily production activities and resource consumption. In sum, even in a highly automated setting that is biased against finding evidence of the cost hierarchy because production scheduling is optimized to minimize batch and product-variety-related resource consumption, the cost hierarchy is an apt description of the association between resource consumption and production activity. However, improved measurement and cost model specification are necessary to reveal this association. Data Availability: Data are the property of the firm and may not be redistributed by the authors.

Modeling the cost-effectiveness of treatment of rheumatoid arthritis with rituximab using registry data from Southern Sweden

2009 ◽  
Vol 25 (02) ◽  
pp. 181-189 ◽  
Author(s):  
Peter Lindgren ◽  
Pierre Geborek ◽  
Gisela Kobelt
Keyword(s):  
Cost Effectiveness ◽  
Discrete Event ◽  
Population Based ◽  
Resource Consumption ◽  
Tnf Inhibitor ◽  
Line Treatment ◽  
Second Line ◽  
Southern Sweden ◽  
Data Set ◽  
The Cost

Objectives:The aim of this study was to estimate the cost-effectiveness of rituximab in patients not responding adequately to the first tumor necrosis factor (TNF) inhibitor using a model constructed to predict resource consumption and health outcomes in a population-based registry of biological treatments in Southern Sweden (SSATG).Methods:The model was developed as a discrete event simulation model, using SSATG data for the years 1999–2007. The data set included 1,903 patients with complete data on treatments (up to three treatment lines), functional capacity (HAQ), disease activity (DAS28), and utility (EQ-5D). Resource consumption was based on a regular population-based survey of patients in Southern Sweden. Rituximab was incorporated as second line treatment, using effectiveness data for the active group (N= 311) in a clinical trial comparing rituximab to placebo (REFLEX). It is thus compared to the mix of second line biologics used in SSATG. The analysis starts after failure of the first TNF inhibitor. Results are reported as costs (€2008) per quality-adjusted life-year (QALY; both discounted 3 percent), for the societal perspective in Sweden.Results:Total costs in the rituximab strategy are estimated at €401,100 compared with €403,000 in the TNF-inhibitor arm. Total QALYs are 5.98 and 5.78, respectively. The findings were found to be robust in extensive sensitivity analysis.Conclusions:In our model, a strategy where rituximab is used as second line treatment after failure of the first TNF inhibitor provides a small saving (essentially due to the lower price of rituximab) and a QALY gain (due to better effect than the mix of second line TNF inhibitors).

scholarly journals A Formal, Resource Consumption-Preserving Translation from Actors with Cooperative Scheduling to Haskell*

2020 ◽  
Vol 177 (3-4) ◽  
pp. 203-234
Author(s):  
Elvira Albert ◽  
Nikolaos Bezirgiannis ◽  
Frank de Boer ◽  
Enrique Martin-Martin
Keyword(s):  
Cost Model ◽  
Formal Semantics ◽  
Operational Semantics ◽  
Resource Consumption ◽  
Target Language ◽  
Correctness Proof ◽  
High Level ◽  
Resource Aware ◽  
The Cost ◽  
Cooperative Scheduling

We present a formal translation of a resource-aware extension of the Abstract Behavioral Specification (ABS) language to the functional language Haskell. ABS is an actor-based language tailored to the modeling of distributed systems. It combines asynchronous method calls with a suspend and resume mode of execution of the method invocations. To cater for the resulting cooperative scheduling of the method invocations of an actor, the translation exploits for the compilation of ABS methods Haskell functions with continuations. The main result of this article is a correctness proof of the translation by means of a simulation relation between a formal semantics of the source language and a high-level operational semantics of the target language, i.e., a subset of Haskell. We further prove that the resource consumption of an ABS program extended with a cost model is preserved over this translation, as we establish an equivalence of the cost of executing the ABS program and its corresponding Haskell-translation. Concretely, the resources consumed by the original ABS program and those consumed by the Haskell program are the same, considering a cost model. Consequently, the resource bounds automatically inferred for ABS programs extended with a cost model, using resource analysis tools, are sound resource bounds also for the translated Haskell programs. Our experimental evaluation confirms the resource preservation over a set of benchmarks featuring different asymptotic costs.

scholarly journals The Role of Resource Consumption Accounting (RCA) in Improving Cost Management in the Jordanian Commercial Banks

2018 ◽  
Vol 10 (10) ◽  
pp. 28
Author(s):  
Abdulkhaliq M. Al-Rawi ◽  
Hiba Abd al-Hafiz
Keyword(s):  
Commercial Banks ◽  
Positive Impact ◽  
Cost Management ◽  
Resource Consumption ◽  
Accounting System ◽  
Positive Role ◽  
Reducing Costs ◽  
The Cost

This research aims to demonstrate the ability of the resource consumption accounting system to create an addition to cost management at the Jordanian commercial banks through the following dimensions: providing appropriate information, reducing costs, and improving the quality of the cost accounting outputs of Jordanian commercial banks. The researchers relied on several study methods, represented in descriptive methodology for the purpose of scientific organized analysis and interpretation, the use of the questionnaire adopted on the basis of the theoretical literature of the previous studies and the analytical approach to describe the phenomenon as it is in fact and then to analyze, interpret and link it with other phenomena, in addition to the statistical approach by using statistical methods in processing and analyzing data pertinent to the subject matter of this research. The conclusions of the research have shown that resource consumption accounting system plays a positive role in cost management by providing appropriate information, reducing costs and improving the quality of banking services in Jordanian commercial banks. The most important recommendations were to urge the decision makers in Jordanian commercial banks to use of the resource consumption accounting system because of its positive impact on cost management, and the raise of awareness of cost accountants in Jordanian commercial banks of the need to develop the cost systems currently used to meet cost management needs.

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