The Effect of Insulating and Non-Insulating Cost Allocations on Risk and Cooperation

2020 ◽  
Author(s):  
Jason Brown ◽  
Geoffrey B. Sprinkle ◽  
Dan Way
Keyword(s):  
Cost Allocations

scholarly journals The effect of consolidated periods in heterogeneous lot-sizing games

Top ◽  
2021 ◽  
Author(s):  
Luis A. Guardiola ◽  
Ana Meca ◽  
Justo Puerto
Keyword(s):  
Time Horizon ◽  
Lot Sizing ◽  
Sufficient Conditions ◽  
Minimum Cost ◽  
Cost Allocations ◽  
Lot Sizing Problem ◽  
Stable Family ◽  
Finite Time Horizon ◽  
The Stability ◽  
Operation Cost

AbstractWe consider a cooperative game defined by an economic lot-sizing problem with heterogeneous costs over a finite time horizon, in which each firm faces demand for a single product in each period and coalitions can pool orders. The model of cooperation works as follows: ordering channels and holding and backlogging technologies are shared among the members of the coalitions. This implies that each firm uses the best ordering channel and holding technology provided by the participants in the consortium. That is, they produce, hold inventory, pay backlogged demand and make orders at the minimum cost of the coalition members. Thus, firms aim at satisfying their demand over the planing horizon with minimal operation cost. Our contribution is to show that there exist fair allocations of the overall operation cost among the firms so that no group of agents profit from leaving the consortium. Then we propose a parametric family of cost allocations and provide sufficient conditions for this to be a stable family against coalitional defections of firms. Finally, we focus on those periods of the time horizon that are consolidated and we analyze their effect on the stability of cost allocations.

The Value of Activity-Based Costing in Competitive Pricing Decisions

2004 ◽  
Vol 16 (1) ◽  
pp. 133-148 ◽  
Author(s):  
Eddy Cardinaels ◽  
Filip Roodhooft ◽  
Luk Warlop
Keyword(s):  
Price Setting ◽  
Activity Based Costing ◽  
Market Segments ◽  
Informative Feedback ◽  
Pricing Decisions ◽  
Cost System ◽  
Cost Allocations ◽  
Traditional Costing ◽  
Market Feedback ◽  
Competitive Pricing

This paper reports experimental evidence on the merits of activity-based costing (ABC) for price-setting in competitive markets that differ in their ability to provide informative feedback. Earlier research has shown that informative market feedback dominates the effects of cost-system design. In a multimarket context involving cost allocations, the present results suggest that cost-system refinement can play a significant role in price-setting, even in the presence of informative market feedback. Specifically, ABC provides benefits over volume-based costing in market segments in which biased cost allocations produce accounting losses that hinder learning from superior competitors. Compared to these informative settings, additional evidence also shows that performance is negatively affected by less informative market feedback. Yet in less informative settings, ABC still outperforms traditional costing, presumably because it helps to filter irrelevant competitor feedback from the decision process.

Management of Financial Information in Charitable Organizations: The Case of Joint-Cost Allocations

2006 ◽  
Vol 81 (1) ◽  
pp. 159-178 ◽  
Author(s):  
Christopher L. Jones ◽  
Andrea Alston Roberts
Keyword(s):  
Public Education ◽  
Financial Information ◽  
Charitable Organizations ◽  
Cost Allocations ◽  
Education Effort

Charities that use direct mailings or other activities that combine a public education effort with fundraising appeals must allocate the joint costs related to these activities to programs, fundraising, and administration. This study investigates whether charities use joint-cost allocations to manage the program ratio—a widely used measure of spending efficiency. Using a hand-collected dataset of 708 organization-year observations from 1992 to 2000, we find evidence that charities use joint costs to mitigate changes in the program ratio.

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