Academic literature on the topic 'Batch costing'

The purpose o f this study is to formally analyze product cost distortions resulting from the process of allocating costs to products based on Activity-Based Costing (ABC) and the conventional product costing systems. The model developed in this paper rigorously shows the impact of treating costs that are not volume related as if they are. The model demonstrates that the source of product cost distortion is the difference between the proportion of driver used by each product in ABC and the proportion of the base used by the same product in the conventional costing systems. The difference arises because the conventional costing systems ignore the existence of batch-related and product-related costs. The model predicts a positive association between volume and size diversity with product cost distortions. When interaction between volume and size diversity exists, the distortion is either mitigated or exacerbated. The magnitude of the distortion is jointly determined by the size of the differences and the size of the total indirect costs.

Lombok memiliki komoditas unggulan pertanian yaitu tembakau jenis Virginia. Kapasitas produksi tembakau di Lombok mampu memenuhi 80% kebutuhan nasional. Anomali cuaca, jumlah hasil panen dan harga beli oleh perusahaan rokok tahun sebelumnya mengakibatkan fluktuasi harga beli. Seringkali petani mengalami kerugian karena kekurangan informasi terutama disebabkan karena tidak ada pencatatan biaya produksi. Tujuan penelitian untuk mendeskripsi sistem biaya produksi pendekatan ABC sebagai bahan pengambilan keputusan. Lokasi penelitian di Kecamatan Sakra, Lombok Timur. Perolehan data penelitian dilakukan dengan wawancara dan observasi. Hasil penelitian menunjukkan bahwa pada pemrosesan batch 1 dan 2, pengusaha pengeringan tembakau mengalami kerugian. Pengusaha mengalami keuntungan setelah pemrosesan batch 3 dan seterusnya. Secara agregat, usaha pengeringan tembakau memberikan manfaat ekonomi bagi warga Lombok.

Some of today’s modern life challenges include addressing the increased waste generation and energy deficiencies. Waste tyres have been identified as one of the key environmental concerns due to their non-biodegradable nature and bulk storage space demand. Pyrolysis is a thermochemical process with the potential to address the growing waste tyre problem, energy deficits, and material recovery by converting waste tyres to pyrolysis oil that can be used as a fuel. This study seeks to critically evaluate the feasibility of constructing and operating a waste tyre processing facility and then subsequently marketing and selling the pyrolysis secondary end products by developing a financial business model. The model encompasses costing, procurement, installation, commissioning, and operating a batch pyrolysis plant in Gauteng, South Africa. To achieve the study objectives, an order of magnitude costing method was used for model construction. The results showed the feasibility and sustainability of operating a 3.5 tonne per day batch waste tyre pyrolysis plant in Gauteng Province, South Africa, with a 15-year life span and a projected payback period of approximately 5 years. It was concluded that for the pyrolysis plant to be successful, further treatment steps are required to improve the process economics; also, a stable and sustainable product market should exist and be regulated in South Africa.

Using mathematical programming with activity-based costing (ABC) and based on the theory of constraints (TOC), this study proposed a green production model for the traditional paper industry to achieve the purpose of energy saving and carbon emission reduction. The mathematical programming model presented in this paper considers (1) revenue of main products and byproducts, (2) unit-level, batch-level, and product-level activity costs in ABC, (3) labor cost with overtime available, (4) machine cost with capacity expansion, (5) saved electric power and steam costs by using the coal as the main fuel in conjunction with Refuse Derived Fuel (RDF). This model also considers the constraint of the quantity of carbon equivalent of various gases that are allowed to be emitted from the mill paper-making process to conform to the environmental protection policy. A numerical example is used to demonstrate how to apply the model presented in this paper. In addition, sensitivity analysis on the key parameters of the model are used to provide further insights for this research.

AbstractOne of the rationalization areas is the material supply process. New tasks of material supply are: integration of supply with the operation of the entire system, especially at the product design stage, effective use of material resources, reduction of the level of supply costs from the point of view of production costs. In the conditions of unit and small batch production the materials requirement needs to be carefully planned and optimized due to the use of many different kinds, types and sizes of materials and dynamic changes of demand over time. In this situation there are needed tools enabling the measurement of production costs for particular tasks on the basis of currently realized processes. One of these tools is activity based costing which is a groundwork for decision making process in the material supply area. Basing on activity based costing, a model of materials requirements planning was developed, which considers minimizing the number of different kinds and sizes of materials by using alternative materials and, consequently, lowering production costs.

Anaerobic codigestion of olive mill wastewater for renewable energy production constitutes a promising process to overcome management and environmental issues due to their conventional disposal. The present study aims at assessing biogas and biomethane production from olive mill wastewater by performing biochemical methane potential tests. Hence, mixtures containing 0% (blank), 20% and 30% olive mill wastewater, in volume, were experimented on under mesophilic conditions. In addition, life cycle assessment and life cycle costing were performed for sustainability analysis. Particularly, life cycle assessment allowed assessing the potential environmental impact resulting from the tested process, while life cycle costing in conjunction with specific economic indicators allowed performing the economic feasibility analysis. The research highlighted reliable outcomes: higher amounts of biogas (80.22 ± 24.49 NL.kgSV−1) and methane (47.68 ± 17.55 NL.kgSV−1) were obtained when implementing a higher amount of olive mill wastewater (30%) (v/v) in the batch reactors. According to life cycle assessment, the biogas ecoprofile was better when using 20% (v/v) olive mill wastewater. Similarly, the economic results demonstrated the profitability of the process, with better performances when using 20% (v/v) olive mill wastewater. These findings confirm the advantages from using farm and food industry by-products for the production of renewable energy as well as organic fertilizers, which could be used in situ to enhance farm sustainability.

PT. Indofood Fritolay Makmur bergerak di Industri makanan ringan, dengan misi membuat produk berkualitas tinggi, inovatif, dan harga terjangkau sehingga menjadi pilihan pelanggan, serta memastikan ketersediaan produk untuk pelanggan domestik dan luar negeri. Dalam memenuhi permintaan kesediaan bahan baku dengan proses produksi haruslah seimbang dalam efisiensi penghematan biaya. Hal ini berakibat pada kelebihan persediaan bahan baku akibat kurang tepat dalam pengambilan keputusan persediaan. Hal ini di sebabkan oleh permintaan dari konsumen sehingga bahan baku pembelian berdasar pada konsumen saja.Terkadang0perusahaan0membeli persediaan0bahan0baku0dalam0jumlah0yang0relatif besar, sehingga menyebabkan pemborosan biaya penyimpanan bahan baku. Untuk itu penggunaan metode ABC (Activity Based Costing) dan Metode Economic Order Quantity (EOQ) dianggap cukup tepat dalam penanganan masalah persediaan. Rata-rata pembelian bahan baku Chiki Balls dengan metode Economical Order Quantity (EOQ) cukup efisien dalam pembelian bahan baku Chiki Balls dalam jumlah 32.317 Bacth dengan 28 kali pesan dalam satu tahun dengan menghabiskan biaya persediaan sebesar Rp. 3.696.433,-/tahun. Jika dibandingkan dengan kebijakan PT. Indofood Fritolay Makmur yang melakukan pembelian sebanyak 48 kali dalam setahun dengan jumlah 19.125 Batch menghabiskan biaya sebesar Rp.4.216.846,-/tahun. Maka dengan menghemat biaya persediaan sebesar Rp.520.413,-/tahun. Dengan metode Economical Order Quantity (EOQ),0perusahaan0harus0menyediakan0persediaan pengaman untuk memperlancar proses penjualan bahan baku Chiki Balls sebanyak 47.379 karton dan titik pemesanan kembali untuk mengantisipasi ketidak tersediaannya bahan baku pada supplier pada saat bahan baku Chiki Balls dalam jumlah 50.359 karton.

Background: Depending on available resources, competencies, and pedagogic preference, initiation of insulin pump therapy can be performed on either an individual or a group basis. Here we compared the two models with respect to resources used. Methods: Time-driven activity-based costing (TDABC) was used to compare initiating insulin pump treatment in groups (GT) to individual treatment (IT). Activities and cost drivers were identified, timed, or estimated at location. Medical quality and patient satisfaction were assumed to be noninferior and were not measured. Results: GT was about 30% less time-consuming and 17% less cost driving per patient and activity compared to IT. As a batch driver (16 patients in one group) GT produced an upward jigsaw-shaped accumulative cost curve compared to the incremental increase incurred by IT. Taking the alternate cost for those not attending into account, and realizing the cost of opportunity gained, suggested that GT was cost neutral already when 5 of 16 patients attended, and that a second group could be initiated at no additional cost as the attendance rate reached 15:1. Conclusions: We found TDABC to be effective in comparing treatment alternatives, improving cost control and decision making. Everything else being equal, if the setup is available, our data suggest that initiating insulin pump treatment in groups is far more cost effective than on an individual basis and that TDABC may be used to find the balance point.

Abstract Motivated by a lack of sufficient local and national computing facilities for computational fluid dynamics simulations, the Affordable Systems Computing Unit (ASCU) was established to investigate low cost alternatives. The options considered have all involved cluster computing, a term which refers to the grouping of a number of components into a managed system capable of running both serial and parallel applications. The present work aims to demonstrate the utility of commodity processors for dedicated batch processing. The performance of the cluster has proved to be extremely cost effective, enabling large three dimensional flow simulations on a computer costing less than £25k sterling at current market prices. The experience gained on this system in terms of single node performance, message passing and parallel performance will be discussed. In particular, comparisons with the performance of other systems will be made. Several medium-large scale CFD simulations performed using the new cluster will be presented to demonstrate the potential of commodity processor based parallel computers for aerodynamic simulation.

Innovative smart parking system works on sensor based IOT technology and cloud computing data collection to direct the driver to the particular parking spot. This paper implements an agile algorithm that improves the efficiency of the present cloud-based parking system and builds a network architecture based on the IOT technology. This paper introduces a system that helps users find a parking space at the least cost based on new efficiency constraints to calculate the user parking cost by considering the dimensions and the total number of free spaces in each car park. This cost will be used to offer a solution of finding an available parking space upon a request by the user and a solution of suggesting a new car park if the current car park is full. The simulation results convey that the algorithm helps improve the stability of successful parking and minimizes the user waiting time at the same time avoiding congestion. We also successfully implemented the algorithm virtually. Existing systems implement first come first serve algorithms to allocate parking space to cars which arrive to parking space, hence wasting a lot of space at the time costing efficiency to the parking lot. The proposed algorithm first sorts the cars based on their size, hence efficiently using the space available and balancing load at the parking side. Also separating the parking space for both large and small cars can help improve the parking congestion and price per space utility factor. The algorithm uses batch algorithms knowingly used in operating systems to arrange tasks and processes in an effective manner. It divides the cars into small and large categories alike the processes in operating systems, which helps to deal with the cars better. The whole system is also backed by low power IOT hardware like Arduino® Uno, NodeMCU® ESP8266, ZigBee networks and cloud computing solutions like Google© Firebase® and Thing Speak®.

Product costing can be used to estimate potential future costs and revenues associated with a product. In the development of new products early cost estimates can be used to support decision making regarding which products are worth pursuing, and which production processes that are the most profitable. For a firm to make precise early cost estimates both technical and financial expertise is needed; however, in practice there is generally a gap between technology and cost. Process-Based Cost Modeling (PBCM) is a model developed to address this gap and generate costing estimates of higher precision. The model is especially developed for process production technologies. Although promising, PBCM is under researched and its applicability in new contexts are yet to be explored.  The purpose of this study was to explore the PBCM’s applicability in new context of process production. This was done through a case study at a multinational agricultural cooperative. The problematization presented by the Case Company was to make early cost estimation of the production process of a main product and its byproducts. Furthermore, the Case Company wanted to compare alternative production designs and use of different raw materials in the production process. To create a product costing model that fully captures the contextual depth of the problem both qualitative and quantitative data was gathered from internal documents, a series of interviews, and observation of one of the sub-processes.  The findings of the study resulted in development of a batch costing model, a hybrid between continuous operations and order costing systems. The batch costing proved to be dynamic and allowed comparison of different production and raw material alternatives. Furthermore, the PBCM methodology that resulted in the batch costing model was evident to give a deeper contextual understanding of the relationship between cost and production technology. For the Case Company, the outcome of the study highlighted key areas needing further investigation and process design features that lower operational costs. The results also provide recommendations how to increase the precision of the product costing models when more data are available. Finally, the academic outcome of the thesis provides trajectory in the further research on PBCM and gives new perspective on the use of batch costing in continuous operations.
Produktkalkylering kan användas för att uppskatta framtida kostnader och intäkter associerade med en produkt. Vid utveckling av nya produkter och produktionsprocess kan produktkalkylering således användas vid beslutsfattande i situationer där man ska välja vilka produkter som är värda att arbeta vidare med, och vid lönsamhetsberäkningar vid olika tillverkningsprocesser. För att företaget ska kunna göra precisa kostnadsuppskattningar behövs både teknisk och ekonomisk expertis. Detta överses dock ofta i praktiken, vilket leder till en klyfta mellan teknik och kostnad. Processbaserad kostnadsmodellering, eller Process-Based Cost Modeling (PBCM), är en metod som har tagits fram för att överkomma denna klyfta, framförallt inom processproduktion. Även om modellen är lovande så saknas forskning på området, därav behöver PBCM:s applicerbarhet prövas i nya kontexter. Syftet med denna studie var att undersöka PBCM:s applicerbarhet i en ny kontext inom processproduktion. Detta gjordes genom att genomföra en fallstudie på ett multinationellt lantbruksföretag som har verksamhet inom livsmedelproduktion. Fallföretags problematisering byggde på att de ville göra en tidig kostnadsbedömning på tillverkningsprocess som producerar en huvudprodukt och ett antal biprodukter. Tillverkningsprocessen är ännu inte utvecklad och företaget vill således jämföra produktionskostnader vid användning av olika råmaterial och tillverkningsalternativ. För att utveckla en lämplig produktkalkyl till företaget samlades både kvalitativa och kvantitativa data in genom interna dokument, en serie av intervjuer, samt genom observation av en av de underliggande tillverkningsprocesserna. Studien resulterade i en hybridkalkyl som använder sig av både process- och orderkalkylering. Hybridkalkylen visade sig lämplig både för företagets produktionsteknologi, men framförallt tillät jämförelse mellan olika tillverkningsalternativ. Metodiken hos PBCM visade sig även användbar för att förstå hur kostnaden påverkas av produktionsteknologin. För fallföretaget påvisade resultaten områden som behöver undersökas ytterligare. Det ges även rekommendationer hur hybridkalkylen kan finslipas när företaget har mer data tillgängligt. När det kommer till det akademiska bidraget, så ger rapporten riktning för fortsatta forskningen på PBCM och ger nya perspektiv på hur hybridkalkylering kan användas i processproduktion.

Syfte - Syftet med denna studie är att bidra med kunskap gällande kostnadskalkylering vid volymvariation. För att uppnå syftet bröts det ner i följande två frågeställningar. [1] Vilka kostnader kan identifieras i operationsenheter? [2] Hur bör en kostnadskalkyl utformas för operationsenheter vid volymvariation? Metod och genomförande - Under studiens gång har en fallstudie bedrivits för att anskaffa empiri och en litteraturstudie för att anskaffa teori. I fallstudien användes observationer, intervjuer och dokumentstudier för insamling av empiri. Den insamlade empirin analyserades tillsammans med teori för att besvara studiens frågeställningar och på så sätt uppfylla syftet. Resultat - Studiens resultat identifierar de kostnader som uppstod i det studerade området samt en kalkylmodell som kan hantera volymvariation. Kostnaderna förklaras med hjälp av de aktiviteter i tillverkningen där de uppstod, vilket är resultatet på den första frågeställningen. För att besvara den andra frågeställningen har olika kostnadskalkylmodeller analyserats för att undersöka deras styrkor och svagheter vid volymvariation. Genom analysen framkom olika egenskaper en kostnadskalkyl borde ha för att hantera volymvariation. Dessa egenskaper har format studiens kalkylmodell och gett den de egenskaper som en kostnadskalkyl vid volymvariation borde ha. Studiens kalkylmodell jämfördes sedan med självkostnadskalkyl för att tydliggöra resultatet. Implikationer - Resultatets implikationer är både teoretiska och praktiska då resultatet påverkar praktiken men även utökar teorin inom kalkylering vid volymvariation. De praktiska implikationerna är den påverkan resultatet har på utförandet av kostnadskalkylering vid volymvariation. Till skillnad från rapportens praktiska implikationer så går de teoretiska implikationer åt båda håll då teorin påverkat studiens riktning men även då resultatet påverkar teorin. Resultatet påvisar att kalkylmodeller inom volymvariation är bristfälliga vilket leder till at de kan ifrågasättas och vidare forskning behövs för att komplettera eller utveckla dessa. Vidare forskning - Studiens resultat är grundat på en fallstudie av enfalls karaktär vilket sänker resultatets generaliserbarhet. Vidare studier för att stärka generaliserbarheten kan genomföras med en flerfallstudie. Studiens kalkylmodell har inte testats i praktiken så vidare studier kan bedrivas genom att praktiskt implementera rapportens resultat. Begränsningar - Den bedrivna fallstudien var en enfallsstudie vilket betyder att endast ett företag studerades. För att öka generaliserbarheten kunde fallstudien bedrivits på fler företag med olika förutsättningar.
Purpose - The purpose is to contribute with knowledge regarding cost calculations during variating lot quantity. To achieve the purpose, it was broken down to two questions that are presented below. [1] Which costs can be identified in manufacturing units? [2] How should product costing be constructed to handle variety in lot quantity? Method and implementations - During the study a case study have been conducted to gather empirical data and a literature study to gather theories. In the case study we used observations, interviews and document study to gather empirical data. Collected empirical data was analyzed against theory to answer the studies questionnaire and through that achieve the purpose. Result - The result consists of the identified costs in the studied field and a model for costing that can handle variation in lot quantity. The costs are explained with help of the activity in the production where it arose, which is the result of the first question. To answer the second question, different models for cost accounting have been analyzed to identify their strengths and weaknesses in regard of variating lot quantity. During the analysis different characteristics was identified that cost calculations should include to handle variating lot quantity. These characteristics have formed the developed model and given it the characteristics a model for cost calculations should have when calculating with variating lot quantity. The model was compared with self-costing to make the result clearer. Implications - The results implications are both theoretical and practical since the result affects the practice and extend the theories regarding costing with variating lot quantity. The practical implications are the impact on the way cost calculations are performed with variating lot quantity. Unlike the practical implications the theoretical are going both ways as theory have affected the result and the result are affecting the theory. The result is showing that today’s way of cost calculation is deficient when handling variation in lot quantity, which leads to questioning of the established theories and further research is needed for complementing or developing. Further research - The reports result is founded on a case study with a single case which lower the results generalizability. Further research to strengthen generalizability can be conducted with a case study that have multiple cases. The result hasn’t been tested in the practice so further research can be performed with practical implementation of the reports result. Limitations - The case study was of single case characteristic which mean that one company was studied. To increase the level of generalizability the case study could have been conducted at multiple businesses with different conditions.