Capacity Costs with Time-Based and Use-Based Asset Value Attrition

2011 ◽  
Vol 25 (2) ◽  
pp. 337-356 ◽  
Author(s):  
Marinus DeBruine ◽  
Parvez R Sopariwala
Keyword(s):  
Real World ◽  
Financial Accounting ◽  
Managerial Accounting ◽  
Asset Value ◽  
Wear And Tear ◽  
Resource Costs ◽  
The Cost ◽  
Product Costs ◽  
Depreciation Methods ◽  
Idle Capacity

SYNOPSIS Traditional depreciation methods used by financial accounting as well as the capacity-based depreciation method recommended by managerial accounting literature assume that assets either lose value due to obsolescence or wear and tear. Recognizing that many assets lose value due to both obsolescence and use, Balakrishnan, Sivaramakrishnan, and Sunder, in the September 2004 issue of Accounting Horizons, propose a granularity framework that creates a nonlinear allocation by simultaneously considering an asset's use-based and time-based losses. However, their approach over-allocates and assigns all resource costs to periods before its usefulness has expired. We introduce several adjustments to the Balakrishnan et al. (2004) methodology with the notion of “flexibility value” and a partitioning of the cost of the acquired resources into a time-based and use-based component that avoids any over-allocation of resource costs. This approach also permits a further partitioning of those expired costs into costs that should be allocated to production or products and costs that should be allocated to periods as cost of unused or idle capacity—that is, to produce more accurate product costs for pricing and planning purposes. Finally, we offer a real-world example for partitioning a resource's acquisition cost into a use-based component and a time-based component.

The Discussion of Precise Depreciation Management in China

2014 ◽  
Vol 926-930 ◽  
pp. 4024-4027 ◽  
Author(s):  
Xu Bei Zhang
Keyword(s):  
Accounting Standards ◽  
Economic Benefits ◽  
Quality Of Information ◽  
Fixed Assets ◽  
The Cost ◽  
Product Costs ◽  
Depreciation Methods

This paper proceeds as follows. Depreciation expense, which will directly relate to the size of the product costs, profits and taxes, is being widely concerned. A great number of people are particularly interested in the accurate depreciation of the costs of fixed assets. Different kinds of fixed assets bring economic benefits for the enterprise in completely different ways so that they should adopt different depreciation methods. The Enterprise Accounting Standards of China stipulated that if the companies increase fixed assets during the month, there will be no depreciation expense this month. But I disagree with this rule which violates the requirement of accounting the quality of information in reliability and authenticity. We should accurately calculate the depreciation expenses by the time, since then the depreciation expense can be accurate to a day. Strengthening the depreciation of fixed assets to precise management is imperative. Precise depreciation management not only helps to control the cost strictly, but also can strengthen management and promote the enterprise to develop sustainably.

PROFESSIONAL DOMINANCE: THE RELATIONSHIP BETWEEN FINANCIAL ACCOUNTING AND MANAGERIAL ACCOUNTING, 1926–1986

2002 ◽  
Vol 29 (2) ◽  
pp. 91-121 ◽  
Author(s):  
Alan J. Richardson
Keyword(s):  
Management Accounting ◽  
Financial Accounting ◽  
Managerial Accounting ◽  
Letters To The Editor ◽  
Management Accountants ◽  
Professional Dominance ◽  
The Relationship

This paper examines the relationship between financial and managerial accounting as reflected in articles, editorials and letters to the editor published in Cost and Management, the Canadian trade magazine for management accountants, between 1926 and 1986. It has been claimed that during this period management accounting techniques lost their relevance to manufacturers, in part, due to the dominance of financial accounting over managerial accounting. This is also the period in which management accounting struggled to become recognized as a profession distinct from financial accounting. The analysis thus focuses on the jurisdictional dispute between financial and managerial accounting and the mechanisms by which managerial accounting was subordinated to financial accounting. The paper identifies the technical, organizational and professional mechanisms used to subordinate managerial accounting. The paper also demonstrates that management accountants were aware of the consequences of their relationship to financial accounting for the relevance of their techniques. Contemporary events suggest that the intersection of financial and managerial accounting remains disputed territory.

The Cost-Effectiveness of Pre-school Peanut Oral Immunotherapy in the Real World Setting

2021 ◽  
Author(s):  
Marcus Shaker ◽  
Edmond S. Chan ◽  
Jennifer LP. Protudjer ◽  
Lianne Soller ◽  
Elissa M. Abrams ◽  
...  
Keyword(s):  
Cost Effectiveness ◽  
Real World ◽  
Oral Immunotherapy ◽  
The Real ◽  
Real World Setting ◽  
The Cost

scholarly journals Application of the theory of decision making under risk and uncertainty at modelling of costs

2010 ◽  
Vol 56 (No. 5) ◽  
pp. 201-208 ◽  
Author(s):  
M. Beranová ◽  
D. Martinovičová
Keyword(s):  
Decision Making ◽  
Financial Accounting ◽  
Cost Functions ◽  
Risk And Uncertainty ◽  
Managerial Decision ◽  
Managerial Decision Making ◽  
Bayesian Theorem ◽  
Long Run ◽  
Short Run ◽  
The Cost

The costs functions are mentioned mostly in the relation to the Break-even Analysis where they are presented in the linear form. But there exist several different types and forms of cost functions. Fist of all, it is necessary to distinguish between the short-run and long-run cost function that are both very important tools of the managerial decision making even if each one is used on a different level of management. Also several methods of estimation of the cost function's parameters are elaborated in the literature. But all these methods are based on the past data taken from the financial accounting while the financial accounting is not able to separate the fixed and variable costs and it is also strongly adjusted to taxation in the many companies. As a tool of the managerial decision making support, the cost functions should provide a vision to the future where many factors of risk and uncertainty influence economic results. Consequently, these random factors should be considered in the construction of cost functions, especially in the long-run. In order to quantify the influences of these risks and uncertainties, the authors submit the application of the Bayesian Theorem.

Water Pricing and Cost Recovery in Water Services in Portugal

2013 ◽  
Vol 10 (4) ◽  
pp. 333-354 ◽  
Author(s):  
Alexandra Aragão
Keyword(s):  
Water Pricing ◽  
Cost Recovery ◽  
Water Services ◽  
Member States ◽  
Economic Agents ◽  
European Water ◽  
Polluter Pays Principle ◽  
Resource Costs ◽  
The Cost

The European water directive forced the Member States to rethink the regulation of water services. Water pricing is now guided by the cost recovery principle. The costs to take into account are manly the environmental and resource costs, but also the financial ones. Portugal was no exception. The evolution from a heavily subsidized activity to a business bound by the polluter pays principle required fast changes and a somewhat difficult adaptation both of economic agents and households.

Linking Cybersecurity and Accounting: An Event, Impact, Response Framework

2021 ◽  
Author(s):  
Diane J. Janvrin ◽  
Tawei (David) Wang
Keyword(s):  
Financial Performance ◽  
Additional Research ◽  
Financial Accounting ◽  
Impact Response ◽  
Managerial Accounting ◽  
Response Strategies ◽  
High Profile ◽  
Research Findings

Due to recent high-profile cybersecurity breaches and increased practitioner and regulatory attention, organizations are under pressure to consider the accounting implications of these attacks and develop appropriate responses. Specifically, cybersecurity events may affect organizations’ operations, financial and non-financial performance, and ultimately its stakeholders. To address how cybersecurity issues may affect accounting, this paper presents an Event, Impact, Response Framework to discuss current research and consider implications for both practitioners and researchers. The Framework highlights how practitioners may rely on research findings to better assess cybersecurity threats, understand their impact, and develop response strategies. Results encourage additional research examining how (1) organizations identify cybersecurity threats, incidents, and breaches, (2) cybersecurity affects different risks, and (3) management responses to cybersecurity risks and events. Further, the Framework suggest the need for cybersecurity research to extend beyond the AIS community to areas such as financial accounting, managerial accounting, and auditing.

Estimating costs of adverse events (AEs) and healthcare resource use (HRU) in patients with relapsed or refractory diffuse large B-cell lymphoma (r/r DLBCL) receiving tisagenlecleucel (tisa-cel) and axicabtagene ciloleucel (axi-cel): A summary of real-world evidence.

2021 ◽  
Vol 39 (15_suppl) ◽  
pp. e19551-e19551
Author(s):  
Hongbo Yang ◽  
Cynthia Zhengyun Qi ◽  
Anand Dalal ◽  
Vamsi Bollu ◽  
Jie Zhang ◽  
...  
Keyword(s):  
Real World ◽  
B Cell Lymphoma ◽  
The United States ◽  
Median Number ◽  
Cost Burden ◽  
Real World Evidence ◽  
Car T ◽  
Grade 3 ◽  
Cost Implications ◽  
The Cost

e19551 Background: The AE rates and HRU reported in multiple real-world evidence (RWE) studies of chimeric antigen receptor T-cell (CAR-T) therapies tisa-cel and axi-cel in r/r DLBCL have differed from those in their clinical trials. However, the cost implications from these findings are not well understood in existing literature. This study summarizes information from these RWE studies of tisa-cel and axi-cel and quantifies the associated costs. Methods: A literature review was conducted to identify RWE studies reporting AE rates and HRU of tisa-cel and axi-cel in the United States (US). AE rates and HRU were summarized and the associated costs were estimated using a micro-costing approach. Costs of AE management included hospitalization and pharmacy costs, such as intensive care unit (ICU) stays, inpatient admissions, and medications for the treatment of cytokine release syndrome (CRS) and neurotoxicity events (NE). HRU costs included hospitalization, ICU stays, and outpatient visit costs. Unit costs were from public health databases that are representative of US healthcare system and from literature. Costs were inflated to 2020 US dollars. A range was reported to present evidence if inputs are available from multiple studies. Results were summarized for tisa-cel and axi-cel separately. Results: Four publications were identified: Jaglowski 2019, Pasquini 2019, Riedell 2019, and Jacobson 2020. Across studies, grade 3+ CRS and NE occurred in 1%-4% and 0%-5% of tisa-cel-treated patients and 7%-16% and 20%-35% of axi-cel-treated patients, respectively. Tocilizumab usage was reported in 14%-20% of tisa-cel- and 62%-71% of axi-cel-treated patients. CAR-T infusion was inpatient for 36% of tisa-cel- and 92%-100% of axi-cel-treated patients. The median hospitalization days was 2 for tisa-cel and 15-16 for axi-cel. ICU transfer was observed for 7% and 28%-38% of tisa-cel- and axi-cel-treated patients, respectively, with median stays of 4 and 5 days, respectively. The median number of outpatient visits within 28 days after infusion was 6 for tisa-cel and 4 for axi-cel. The total estimated costs for managing AEs per patient were $843-$1,962 for tisa-cel and $5,979-$10,878 for axi-cel. The total estimated HRU costs per patient were $3,321 for tisa-cel and $32,394-33,166 for axi-cel. Conclusions: RWE studies suggest that patients with r/r DLBCL receiving tisa-cel had numerically lower AE rates, HRU, and cost burden than those receiving axi-cel in the US. The additional cost burden for axi-cel was primarily driven by the incremental ICU and hospitalization care due to a higher proportion of inpatient infusion among patients receiving axi-cel. Further research is warranted to compare the costs associated with the two CAR-Ts in r/r DLBCL.

scholarly journals Neural Representation and Learning of Hierarchical 2-additive Choquet Integrals

2020 ◽  
Author(s):  
Roman Bresson ◽  
Johanne Cohen ◽  
Eyke Hüllermeier ◽  
Christophe Labreuche ◽  
Michèle Sebag
Keyword(s):  
Real World ◽  
Choquet Integral ◽  
Marginal Utility ◽  
Decision Makers ◽  
Neural Representation ◽  
Automatic Identification ◽  
Neural Architecture ◽  
Real World Applications ◽  
Choquet Integrals ◽  
The Cost

Multi-Criteria Decision Making (MCDM) aims at modelling expert preferences and assisting decision makers in identifying options best accommodating expert criteria. An instance of MCDM model, the Choquet integral is widely used in real-world applications, due to its ability to capture interactions between criteria while retaining interpretability. Aimed at a better scalability and modularity, hierarchical Choquet integrals involve intermediate aggregations of the interacting criteria, at the cost of a more complex elicitation. The paper presents a machine learning-based approach for the automatic identification of hierarchical MCDM models, composed of 2-additive Choquet integral aggregators and of marginal utility functions on the raw features from data reflecting expert preferences. The proposed NEUR-HCI framework relies on a specific neural architecture, enforcing by design the Choquet model constraints and supporting its end-to-end training. The empirical validation of NEUR-HCI on real-world and artificial benchmarks demonstrates the merits of the approach compared to state-of-art baselines.

scholarly journals Cost of Quality Analysis on Tailors’ Industry in Aceh

2018 ◽  
Vol 1 (1) ◽  
pp. 98-111
Author(s):  
Dinaroe Dinaroe ◽  
Syarifah Umaira ◽  
Fazli Syam BZ
Keyword(s):  
Data Availability ◽  
Quality Analysis ◽  
Annual Reports ◽  
Future Research ◽  
Research Approach ◽  
Managerial Accounting ◽  
Quality Cost ◽  
Cost Of Quality ◽  
The Cost ◽  
Banda Aceh

Objective – This research aims to explore and find out the application of Cost of Quality in Managerial Accounting perspective on the Tailor’s businesses in Banda Aceh during the period of 2015 – 2017. In addition, the research purposes are to analyze the firms plan and control of the Cost of Quality and how the firms arrange the cost in order to improve the quality with minimum budget cost.Design/methodology – The study uses qualitative descriptive research approach and being conducted using data from the firms annual reports and additional in-depth interview with the owners. The technique of purposive sampling is used in this study with the data availability criteria. The population of the research are the Micro, Small and Medium Enterprises (MSMEs) in Banda Aceh, and the sample criteria among others are tailor industry factories in Banda Aceh that have already prepared financial report during the observed period. CV Kuta Alam Tailor and CV Aceh Moda Tailor have been selected as the samples and as the study case location. The researcher analyzed the data by analyzing and examining the costs incurred by the firms, at how much and what kind of it, related to the cost of quality and cost of goods sold before and after the cost of quality is being added. Results – The result shows that CV. Kuta Alam Tailor and CV. Aceh Moda Tailor in term of cost of quality is still above 2.5% of the sales, thus indicates that the cost extravagancy and there are big differences in the cost of the goods sold if the cost of quality is included into the cost of goods sold. In addition, it is also found that both firms do not make a quality cost report specifically.Research limitations/implications – The research is based on the qualitative approach and does not using empirical research tools, so then it can not be generalized for overall tailor industry in Aceh nor Indonesia, outside of the observed firms and location. Therefore, it is necessary for the future research to explore more this phenomenon by using quantitative approach in order to analyze the influence of quality cost and firm performance or budget efficiencies.Novelty/Originality – The research focuses on analyzing and examining the cost of Quality in manufactur industry, particularly in the Job-Process Industry, such as Tailor industry is still very novice and need to be nurtured. Thus, this study contributes to this area by examining the implementation and aplication of the cost of quality whether the cost information can produce managerial information through financial and managerial reporting that will improve the product quality toward cost effeciency.Keywords Cost of Quality, Prevention Cost, Appraisal Cost.

scholarly journals The cost-effectiveness of initiating ranibizumab therapy in eyes with neovascular AMD with good vision: an economic model using real-world outcomes

BMJ Open ◽  
2015 ◽  
Vol 5 (5) ◽  
pp. e006535-e006535 ◽  
Author(s):  
T. Butt ◽  
A. Lee ◽  
C. Lee ◽  
A. Tufail ◽  
W. Xing ◽  
...  
Keyword(s):  
Cost Effectiveness ◽  
Real World ◽  
Economic Model ◽  
Neovascular Amd ◽  
The Cost ◽  
Good Vision
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