scholarly journals Primary Research of the Advantages and the Cost Control of the ABC & EVA Integrated System

2010 ◽  
Vol 3 (3) ◽  
pp. 141
Author(s):  
Haibo Hu
Keyword(s):  
Cost Control ◽  
Control Strategies ◽  
Economic Value ◽  
Value Added ◽  
Capital Cost ◽  
Integrated System ◽  
Activity Based Costing ◽  
Cost System ◽  
Integrated Cost ◽  
The Cost

The integrated product of Activity-Based Costing (ABC) and Economic Value Added (EVA) is the ABC & EVA system, i.e. the integrated cost system. Traditional ABC method gives priority to the interior activity chain of enterprise to implement the cost analysis, but ignores the capital cost, so the cost accounting is not complete. The ABC & EVA system brings the capital cost into the cost management, which could not only open out the real economic value created by the cost objects, but extend the pure cost computation of ABC to the performance evaluation. Based on the principle of the ABC & EVA system, the enterprise cost control strategies under the integrated cost system are proposed.

THE FOREIGN BANK EFFECT ON VALUE CREATION IN COMMERCIAL BANKS INCORPORATED IN THAILAND

2008 ◽  
Vol 53 (02) ◽  
pp. 215-244
Author(s):  
CHANTAL HERBERHOLZ
Keyword(s):  
Performance Measures ◽  
Commercial Banks ◽  
Economic Value ◽  
Value Added ◽  
Foreign Bank ◽  
Level Data ◽  
Beneficial Impact ◽  
Domestic Banks ◽  
The Cost ◽  
Traditional Performance

Using quarterly bank-level data over the period 1997–2005, this paper examines the effect of foreign bank presence on commercial banks incorporated in Thailand, using traditional and value-based performance measures as indicators of the degree of competition and proxies for the efficiency in the provision of banking services. The findings suggest that foreign bank presence is not only beneficial in terms of traditional performance measures, but also in terms of economic profit. The results with respect to economic value added and cash value added, however, cast some doubt over the presumed benefits of opening up, underlining the importance of using a proxy that considers the cost of equity and departs from standard accounting principles. Furthermore, the results indicate that foreign entry through the acquisition of domestic banks appears to have a stronger and more beneficial impact on locally incorporated banks than through the establishment of branches, with majority ownership by a foreign blockholder being of importance.

The Effect of Application of Management Accounting To Performance through Strategy

2017 ◽  
Vol 2 (4) ◽  
pp. 12-20
Author(s):  
Ali Muktiyanto
Keyword(s):  
Higher Education ◽  
Balanced Scorecard ◽  
Structural Equation ◽  
Management Accounting ◽  
Measurement Techniques ◽  
Economic Value ◽  
Value Added ◽  
Equation Modeling ◽  
Activity Based Costing ◽  
Study Program

Objective - The context strategy as process and strategy as content have significant impact to the correlation between strategy and management accounting (Muktiyanto, 2016; Parnell, 2010). In the context strategy as process, this paper aims to investigate the role of management accounting to performance through the choice of strategy. Methodology/Technique - The method by structural equation modeling on 70 (seventy) of undergraduate Accounting Study Program (composition: 70% Private Universities and 30% Public Universities). Opposite with Henry (2006) and Widener (2007) and support with Speklé and Verbeeten (2014) and Acquaah (2013). Findings - This paper shown that the accounting management directly influence the performance, but not mediated by strategy. The practice of budgetary slack, the implementation of modern accounting such as activity-based costing and target costing, the use of performance measurement techniques such as the balanced scorecard, measurements based performance, and the economic value added, as well as integrated information system is an important factor in improving the performance of Higher Education. Unfortunately, the choice of strategy moderate or "stuck in the middle" has not been able to improve the performance of Higher Education directly nor as a mediating between management accounting and performance. However, in the context strategy as process, management accounting have positive influence to the strategic choice. Novelty - The effort of Higher Education to improve the performance is choose a single strategy or focus on the prospector's strategy. Type of Paper: Empirical Keywords: Management Accounting, Strategy, Performance, Indonesia. JEL Classification: M40, M41

Linkage between Economic Value Added and Market Value: An Analysis

2000 ◽  
Vol 25 (3) ◽  
pp. 23-36 ◽  
Author(s):  
Ashok Banerjee
Keyword(s):  
New York ◽  
Economic Value ◽  
Value Added ◽  
Market Value ◽  
Shareholder Wealth ◽  
Indian Context ◽  
The Us ◽  
Generating Capacity ◽  
The Cost ◽  
Future Growth

Maximizing shareholder value has become the new corporate paradigm. Corporations in the US have started disclosing EVA information from the beginning of 90s as a measure of corporate performance. It is believed that market value of a firm (hence shareholder wealth) would increase with the increase in EVA. Various studies done in the US also confirm this belief. EVA (a term coined and registered by Stern Stewart & Co. New York) is a residual income that subtracts the cost of capital from the operating profits generated by a business. The present study makes an at tempt to find the relevance of Stewart's claim that market value of the firm is largely driven by its EVA generating capacity in the Indian context. Based on a sample of 200 firms over a period of five years, the study shows that market value of a firm can be well predicted by estimated future EVA streams. The study has also found that market value of most of the firms in the sample is explained more by current operational value than future growth value of firms.

scholarly journals Cost Adjustment in the Korean Defense Industry: Empirical Research on the Relation between Earnings Management and Sustainability

2019 ◽  
Vol 11 (5) ◽  
pp. 1481 ◽  
Author(s):  
Sangkyun Sohn ◽  
Joonho Park ◽  
Jinseek Lee
Keyword(s):  
Earnings Management ◽  
Indirect Costs ◽  
Defense Industry ◽  
Equity Capital ◽  
Cost Of Equity Capital ◽  
Cost Of Equity ◽  
Cost System ◽  
The Difference ◽  
Integrated Cost ◽  
The Cost

This article is a demonstrative research on the motivation and method for earnings management in the Korean defense industry and its connection with the cost of equity capital. The data for this article comes from the Korean DICS (Defense Integrated Cost System). The difference between the cost data submitted by defense corporations and those verified by DAPA (Defense Acquisition Program Administration) serves as an indicator of earnings management; such a direct measurement of earnings management distinguishes this research from previous studies focusing on indirect indicators of earnings management, such as discretionary accruals. This article purposefully names such a specific form of earnings management as ‘cost adjustment’ that takes advantage of the difference between the submitted cost and the verified cost. The result of the research shows that cost adjustment activities in the defense industry are proportional to the capital cost required by shareholders. It is also notable that the cost adjustment activities in the defense industry are mostly done by making use of direct costs, in contrast to other industries utilizing indirect costs, which are hardly traceable. As a result of cost adjustment to meet short-term target profit, the long-term sustainability of the company would get impaired from the inflated costs in direct cost adjustments.

scholarly journals Application of the Activity-Based Costing Method for Unit-Cost Calculation in a Hospital

2015 ◽  
Vol 8 (1) ◽  
pp. 165 ◽  
Author(s):  
Mahdi Javid ◽  
Mohammad Hadian ◽  
Hossein Ghaderi ◽  
Shahram Ghaffari ◽  
Masoud Salehi
Keyword(s):  
Unit Cost ◽  
Cost Price ◽  
Medical Services ◽  
Cost Calculation ◽  
Accounting System ◽  
Activity Based Costing ◽  
Hospital Managers ◽  
Cost System ◽  
Abc Method ◽  
The Cost

<p><strong>BACKGROUND:</strong> Choosing an appropriate accounting system for hospital has always been a challenge for hospital managers. Traditional cost system (TCS) causes cost distortions in hospital. Activity-based costing (ABC) method is a new and more effective cost system.</p> <p><strong>OBJECTIVE:</strong> This study aimed to compare ABC with TCS method in calculating the unit cost of medical services and to assess its applicability in Kashani Hospital, Shahrekord City, Iran.‎</p> <p><strong>METHODS:</strong> This cross-sectional study was performed on accounting data of Kashani Hospital in 2013. Data on accounting reports of 2012 and other relevant sources at the end of 2012 were included. To apply ABC method, the hospital was divided into several cost centers and five cost categories were defined: wage, equipment, space, material, and overhead costs. Then activity centers were defined. ABC method was performed into two phases. First, the total costs of cost centers were assigned to activities by using related cost factors. Then the costs of activities were divided to cost objects by using cost drivers. After determining the cost of objects, the cost price of medical services was calculated and compared with those obtained from TCS.‎</p> <p><strong>RESULTS:</strong> The Kashani Hospital had 81 physicians, 306 nurses, and 328 beds with the mean occupancy rate of 67.4% during 2012. Unit cost of medical services, cost price of occupancy bed per day, and cost per outpatient service were calculated. The total unit costs by ABC and TCS were respectively 187.95 and 137.70 USD, showing 50.34 USD more unit cost by ABC method. ABC method represented more accurate information on the MAJOR COST COMPONENTS.</p> <p><strong>CONCLUSION:</strong> By utilizing ABC, hospital managers have a valuable accounting system that provides a true insight into the organizational costs of their department.<strong></strong></p>

scholarly journals Strategi Pengendalian Biaya sebagai Alat Perencana Laba

Media Wisata ◽  
2021 ◽  
Vol 4 (1) ◽  
Author(s):  
Budi Hermawan
Keyword(s):  
Operations Management ◽  
Cost Control ◽  
Control Strategies ◽  
Low Cost ◽  
Operating Costs ◽  
Intended Purpose ◽  
The Cost

Controlling costs is one of the most important elements in the management of profit. Controlling costs is an act that was carried out continuously to control the costs to be able to generate revenue and profits in accordance with the intended purpose of management. Cost control is good and not always at a low cost. In general the company’s operations, management is always trying to achieve low cost, but it is not entirely correct. In some situations, increased costs may be the best action to improve profits. Management may take a few steps to cost control strategies to manage the company in achieving profits, as follow: control by increasing sales; controlling the cost of goods sold and gross profit; evaluate the operating costs and focus on the management of profit centres of activity

scholarly journals Pengaruh Metode Economic Value Added (EVA), Return On Asset (ROA), Return On Equity (ROE), dan Debt To Equity Ratio (DER) Terhadap Return Saham

2020 ◽  
Vol 4 (5) ◽  
pp. 230
Author(s):  
Monica Faulina Fernandus ◽  
Indra Widjaja
Keyword(s):  
Random Effect ◽  
Economic Value ◽  
Value Added ◽  
Company Performance ◽  
Return On Equity ◽  
Significant Performance ◽  
Equity Ratio ◽  
The Cost ◽  
Research Period ◽  
Effect Method

Performance measurement can be used to measure company's success in a certain period of time and can be used as input for improvement of the company in the future. In measuring company performance, investors usually see financial performance reflected in various ratios. Managerial work measurements rarely use value added calculation approach to the cost of invested capital. Because of the limitations and weaknesses of the ratio, EVA method emerged as a measure of company performance.This study aims to determine whether LQ45 companies in Indonesia have succeeded in adding value, so their performance is positive and which is the most significant performance evaluation methods: EVA, ROA, ROE, or DER. The research period is within 2016-2018 using Eviews 9.The results showed that although the companies are listed in the LQ45 category, the use of capital structure policies are not optimal and random effect method states DER as the most significant method for measuring company performance.

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