Activity-based Cost Accounting Research Articles

Strategizing competitive edge in service operations: a model proposal for determining the unit costs through the activity-based cost accounting and the full-consistency method

Strategizing competitive edge in service operations: a model proposal for determining the unit costs through the activity-based cost accounting and the full-consistency method

The Relationship of Organization and Technology to the Application of Activity-Based Cost Accounting Systems in Enterprises in Hanoi

Purpose: The article analyzes the relationship of organization and technology to the application of an activity-based cost accounting system in enterprises in Hanoi, providing more empirical evidence on the relationship between organizations and individuals. organization and technology to the application of an activity-based cost accounting system in enterprises in Hanoi. Theoretical framework: This paper uses the The innovation diffusion theory, The resource theory, The theory of cost-benefit analysis. Design/Methodology/Approach: The research method uses a questionnaire survey of accountants, chief accountants, business managers. After the survey results are available, perform data processing by statistical methods to determine the weight and frequency of selected factors, process the data on SPSS statistics 25 software, analyze the reliability of the data. factors as well as factor measurement criteria, and at the same time apply statistical methods to synthesize and compare to estimate the impact of the relationship of organization and technology on the application of the application of activity-based cost accounting systems in enterprises in Hanoi. Findings: The research results show that the support of managers, the leader, the size of the organization, the ABC consultants, the cost, the variety and complexity of the product, and the relative advantage have a positive relationship with the job. applying an activity-based cost accounting system in enterprises in Hanoi. Research, practical & social implications: Based on the research results, the author has proposed recommendations to apply the activity-based cost accounting system in enterprises in Hanoi. Originality/Value: This study fills the gap in The relationship of organization and technology to the application of activity-based cost accounting systems in enterprises in Hanoi.

Factors Affecting the Implementation of Activity-based Costing Systems in Businesses

Purpose: The article analyzes the impact of factors affecting the application of an activity-based cost accounting system in Vietnamese food and beverage enterprises. Theoretical framework: This paper uses the activity-based costing system. Design/Methodology/Approach: The research method uses a questionnaire survey of accountants, chief accountants, business managers of Vietnamese food and beverage enterprises. After the survey results are available, data processing is performed by statistical methods to determine the weight and frequency of the selected factors, and the data is processed on SPSS statistics 25 software to estimate the impact of the selected factors affecting the application of the operation-based cost accounting system in Vietnamese food and beverage enterprises. Findings: Research results show that Relative advantage, Enterprise size, Role of cost information, Employee training, Information technology quality, Manager's support have a positive impact on system application. cost accounting system based on activity in Vietnamese food and beverage enterprises, in which the support of managers is the influencing factor with the largest regression coefficient. Research, practical & social implications: Based on the research results, the author has proposed recommendations to minimize the negative impact of these pressures in order to limit the occurrence of violations of professional ethics of Vietnamese auditors. Originality/Value: Based on the research results, the author has proposed recommendations to improve the application of the activity-based cost accounting system in Vietnamese food and beverage enterprises.

Activity-based Costing Accounting System and Government Services Efficiency

The objective of this research is to investigate the Activity-based Costing accounting system and Jordan's efficiency of government services. ABC systems were also influenced to improve and evolve in order to increase the efficiency of government services. The study's sample consists of 182 questionnaires completed by Jordanian government employees. The study revealed that the Activity-based Costing accounting system has a significant impact on the efficiency of Jordan's government services. Furthermore, the study revealed an Activity-based Costing accounting system for all levels as a way to improve government service efficiency and crucial to accomplishing efficiency both in the short and long run, as well as the need to just have accounting systems that abide by international financial reporting standards, which seem to be critical inside any accounting part.

Examining the Evolution of Management Accounting: A Qualitative Review

This qualitative review investigates the evolution of management accounting, focusing on its historical development, theoretical frameworks, and contemporary practices. The research aims to provide insights into the adaptive nature of management accounting in response to changing organizational needs, technological advancements, and societal trends. The methodology involves a comprehensive literature review encompassing historical analysis, theoretical perspectives, and empirical studies in the field of management accounting. Key findings reveal the historical roots of management accounting tracing back to the Industrial Revolution, with significant milestones including the emergence of cost accounting techniques, budgeting systems, and advanced methodologies like activity-based costing and strategic management accounting. The review also identifies theoretical frameworks such as agency theory, contingency theory, and institutional theory, offering diverse perspectives on the role and functioning of management accounting within organizations. Contemporary practices in management accounting emphasize strategic analysis, risk management, performance measurement, and the integration of financial and non-financial metrics. Technological advancements, particularly in information technology, have revolutionized decision support capabilities, enabling real-time monitoring and analysis of organizational performance. The synthesis of literature underscores the dynamic and multifaceted nature of management accounting, highlighting its pivotal role in facilitating strategic decision-making, enhancing organizational performance, and driving sustainable growth. The findings contribute to a deeper understanding of management accounting evolution and offer implications for practice and future research.

Activity-based cost accounting as a tool for strategic company management

A strategic approach to fnancial performance management allows the company to achieve long-term business success. However, to implement this approach, it is necessary to organize an appropriate information system. The purpose of the work is to study the main problems of accounting and analytical support of strategic management of a manufacturing company in rapidly changing market conditions. Also, in order to ensure sustainable development and achieve the planned fnancial result, the author of the article offers reasonable suggestions and recommendations for the formation of information in the context of the types of activities of an economic entity. The author analyzes existing approaches to systematization of information by types of activity and gives recommendations for the consistent application of the methodology for generating data in the context of key activities, identifying cost drivers and evaluating products in relation to the business processes they cause. The article formulates requirements for the organization of cost accounting by type of activity with the possibility of assessing the relationship between the company’s products and the consumption of resources and the formation of the optimal product range on this basis. The practical implementation of mentioned recommendations will provide an opportunity to improve the fnancial position of the company by identifying and reducing activities that do not create value and to allocate available resources more effectively.

RESOURCES CONSUMPTION ACCOUNTING FOR A RATIONAL PRODUCTION COSTS: A CASE STUDY

This study aims to examine the effectiveness of using the resource consumption accounting system to reduce the cost of the product as one of the advanced approaches to allocating costs. Because of the enormous competition of companies in the market, cost control becomes an essential part that helps managers make cost-cutting decisions to achieve greater corporate profitability. This study shedding light on the new cost-accounting model RCA, the cost management approach that combines German cost accounting and activity-based cost accounting (ABC). This system provides more accurate and reliable data for more effective planning, control, and performance evaluation. Using this system in the Iraqi industrial companies is an important step in improving the accuracy of measuring costs and thus reducing the cost of its products and achieving a competitive advantage. The study was applied in the Babel tire factory, one of the factories of the General Company for Rubber Industries and Tires.

The Cost of Hip and Knee Revision Arthroplasty by Diagnosis-Related Groups: Comparing Time-Driven Activity-Based Costing and Traditional Accounting

BackgroundTraditional hospital cost accounting (TA) has innate disadvantages that limit the ability to meaningfully measure care pathways and quality improvement. Time-driven activity-based costing (TDABC) allows a meticulous account of costs in primary total joint arthroplasty (TJA). However, differences between TA and TDABC have not been examined in revision hip and knee TJA (rTJA). We aimed to compare total costs of rTJA by the diagnosis-related group (DRG), measured by TDABC vs TA. MethodsOverall costs were calculated for rTJA care cycles by DRG for 2 years of financial data (2018-2019) at our single-specialty orthopedic institution using TA and TDABC. Costs derived from TDABC, based on time and resources used, were compared with costs derived from TA based on historical costs. Proportions of implant and nonimplant costs were measured to total TA costs. ResultsSeven hundred ninety-three rTJAs were included in this study, with TA methodology resulting in higher cost estimates. The total cost per DRG 468, rTJA with no comorbidities or complications (CC), DRG 467, rTJA with CC, and DRG 466, rTJA with major CC, estimated by TDABC was 69%, 67%, and 49% of the estimation by TA, respectively. Implant and nonimplant costs represented different proportions between methodologies. ConclusionConsiderable differences exist, as TA estimations were 31%-51% higher than TDABC. The true cost is likely a value between the estimations, but TDABC presents granular and patient-specific cost data. TDABC for rTJA provides valuable bottom-up information on cost centers in the care pathway and, with targeted interventions, may lead to a more optimal delivery of value-based health care.

Assessing the financial aptitude of industrial firms to implement servitised earnings models

Servitisation research covers a large variety of aspects related to novel earning models, like pay-per-use schemes or other outcome-oriented charging modalities. However, it may overlook aspects related to bookkeeping and financing such operations. This article introduces the concept of financial aptitude to hypothesise under which circumstances industrial firms are likely to introduce servitised earnings models. It builds upon insights from management reporting and financialisation theories for that purpose. It postulates that activity-based cost accounting and interaction with organisations that specialise in the financing and/or managing of industrial assets raises the propensity to take up servitised earnings models.

Modern Maliyet Muhasebesinin Son Safhası: Kaynak Tüketim Muhasebesi Modeli

Geleneksel hacme dayalı maliyetleme modellerine göre teorik üstünlüğüne rağmen, Faaliyet Tabanlı Maliyetleme (ABC) modeli çoğu kurumda geleneksel hacme dayalı maliyetleme modellerinin yerini alamamıştır. Zaman Sürümlü Faaliyet Tabanlı Maliyetleme (TDABC) ve Kaynak Tüketim Muhasebesi (RCA) modelleri, Faaliyet Tabanlı Maliyetlemenin yetersizliklerine ve eksikliklerine çözüm getirmek amacıyla yeni nesil maliyet yönetim sistemleri olarak geliştirilmiştir. Kaynak Tüketim Muhasebesi, Alman Maliyet Muhasebesi (GPK) ve Faaliyet Tabanlı Maliyetleme (ABC) sistemlerinin bileşiminden oluşmaktadır. Bu çalışma, Kaynak Tüketim Muhasebesinin ortaya çıkışı, aşamaları, avantajları ve dezavantajları hakkında bilgi vermek ve geleneksel sistemler ile Zaman Sürümlü Faaliyet Tabanlı Maliyetleme sistemi ile karşılaştırılmasının gösterilmesi amacıyla yapılmıştır.

Key Factors of Effectiveness of Developing an Activity Based Cost Accounting and Analysis System at an Enterprise

The article researches the problems related to the improvement of the efficiency of developing a system of activity based cost accounting and analysis at an enterprise based on a number of important factors. The first factor involves the organization of the accurate accounting of the most significant costs. The ABC model on the basis of the key costs will simplify the development of the system of cost accounting and make it possible to quickly modify its configuration in line with changes in economic and production environment conditions. The next factor implies the strict separation between the methods of analysis and modeling applied within the framework of a process management system and a system of activity based cost accounting and analysis. It helps to eliminate the errors connected with using wrong data as an information base for accounting. The third factor is using the data generated by information systems of an enterprise to calculate costs. The authors identify the information necessary to organize the activity based costing and determine within which kind of the information systems (ERP-system, EAM-system, etc.) it is formed. The use of this information will allow the enterprise to automate the cost calculation procedure and eliminate the additional work of data collection. The results of the analysis of these factors are the recommendations formulated by the authors to improve the efficiency of creation of activity based cost accounting and analysis system at an enterprise.

The Costs of Hepatitis C by Liver Disease Stage: Estimates from the Veterans Health Administration

The release of highly effective but costly medications for the treatment of hepatitis C virus combined with a doubling in the incidence of hepatitis C virus have posed substantial financial challenges for many healthcare systems. We provide estimates of the cost of treating patients with hepatitis C virus that can inform the triage of pharmaceutical care in systems with limited healthcare resources. We conducted an observational study using a national US cohort of 206,090 veterans with laboratory-identified hepatitis C virus followed from Fiscal Year 2010 to 2014. We estimated the cost of: non-advanced Fibrosis-4; advanced Fibrosis-4; hepatocellular carcinoma; liver transplant; and post-liver transplant. The former two stages were ascertained using laboratory result data; the latter stages were ascertained using administrative data. Costs were obtained from the Veterans Health Administration's activity-based cost accounting system and more closely represent the actual costs of providing care, an improvement on the charge data that generally characterizes the hepatitis C virus cost literature. Generalized estimating equations were used to estimate and predict costs per liver disease stage. Missing data were multiply imputed. Annual costs of care increased as patients progressed from non-advanced Fibrosis-4 to advanced Fibrosis-4, hepatocellular carcinoma, and liver transplant (all p < 0.001). Post-liver transplant, costs decreased significantly (p < 0.001). In simulations, patients were estimated to incur the following annual costs: US $17,556 for non-advanced Fibrosis-4; US $20,791 for advanced Fibrosis-4; US $46,089 for liver cancer; US $261,959 in the year of the liver transplant; and US $18,643 per year after the liver transplant. Cost differences of treating non-advanced and advanced Fibrosis-4 are relatively small. The greatest cost savings would be realized from avoiding progression to liver cancer and transplant.

Data collected by the electronic health record is insufficient for estimating nursing costs: An observational study on acute care inpatient nursing units

Introduction As the electronic health record becomes more sophisticated, commensurate advances in cost accounting have risen as a top priority for hospital leaders. This study explored: 1) the average time to complete common nursing tasks documented in the electronic health record, 2) nursing-related tasks that remain undocumented, 3) the association between observation data and actual nursing documentation, and 4) considerations for model development and report design to be used for activity based cost accounting in nursing.Methods This was an observational study completed on acute care inpatient nursing units at a large academic medical center. During a five-week period, 63 nurses from 25 units were observed for over 250 h.Results Nearly 60% of the observed nursing activities did not fit into categories readily available in, and easily abstracted from, the electronic health record. The undocumented activities accounted for over half of the observation tasks and equated to nearly 130 h, in which over 40 h were spent on the activity of documentation/charting itself. Furthermore, nearly 36 h were spent on communication, followed by 13.5 h on monitoring/surveillance, two critical tasks in nursing which cannot be overlooked.Conclusions Using the electronic health record for cost accounting in nursing is a novel approach. In addition to the electronic health record, supplementary sources of data must be included to accurately capture nursing work and associated costs. Findings and lessons learned from this study will be used to guide future work and develop a model that determines the cost of nursing care and improved value in hospitalized patients.

Robotic mitral valve operations by experienced surgeons are cost-neutral and durable at 1 year

BackgroundRobotic mitral valve surgery has potential advantages in patient satisfaction and 30-day outcome. Cost concerns and repair durability limit wider adoption of robotic technology. This study examined detailed cost differences between robotic and sternotomy techniques in relation to outcomes and durability following robotic mitral program initiation. MethodsBetween April 2013 and October 2015, 30-day and 1-year outcomes of 328 consecutive patients undergoing robotic or sternotomy mitral valve repair or replacement by experienced surgeons were examined. Multivariable logistic regression informed propensity matching to derive a cohort of 182 patients. Echocardiographic follow-up was completed at 1 year in all robotic patients. Detailed activity-based cost accounting was applied to include direct, semidirect, and indirect costs with special respect to robotic depreciation, maintenance, and supplies. A quantitative analysis of all hospital costs was applied directly to each patient encounter for comparative financial analyses. ResultsMean predicted risk of mortality was similar in both the robotic (n = 91) and sternotomy (n = 91) groups (0.9% vs 0.8%; P > .431). The total costs of robotic mitral operations were similar to those of sternotomy ($27,662 vs $28,241; P = .273). Early direct costs were higher in the robotic group. There was a marked increase in late indirect cost with the sternotomy cohort related to increased length of stay, transfusion requirements, and readmission rates. Robotic repair technique was associated with no echocardiographic recurrence greater than trace to only mild regurgitation at 1 year. ConclusionsExperienced mitral surgeons can initiate a robotic program in a cost-neutral manner that maintains clinical outcome integrity as well as repair durability.

Maximizing Operational Efficiency Using an In-House Ambulatory Surgery Model at an Academic Medical Center.

Given the rising costs of healthcare delivery and reimbursement constraints, large academic medical centers (AMCs) must improve efficiency while delivering high-quality care. With standardized cases and high volumes, ambulatory surgery is a high-value target for efficiency improvement. Mining a data set of more than 7,500 cases consisting of the three highest-volume ambulatory procedures in orthopedics, otolaryngology-head and neck surgery, and urology, we analyzed process times and wait times involved in patient flow. We examined differences among delayed versus early versus on-time cases, as well as differences in scheduled start times, day of the week, and each individual operating room. Our analysis found statistically and clinically significant differences in registration and setup wait times when comparing delayed versus early versus on-time cases. We then developed recommendations to increase value-added time. Using activity-based cost accounting, we created a model to quantify economic impact. Hospitals can adopt these methods to identify operational bottlenecks and employ our financial model to forecast changes in revenue. Application of this model can position AMCs for success in an increasingly competitive landscape.

Uproszczony model wdrożenia rachunku kosztów działań sterowany czasem, bazujący na podejściu dwuetapowym

A simplified model for the implementation of a Time-Driven Activity Based Cost Accounting TD ABC approach, consisting of two stagesThe article presents a suggested approach to implementing the Time-Driven Activity Based Cost Accounting TD ABC, consisting of two stages. The first step — intermediate in relation to full implementation — is to determine the costs of activities and processes. This approach allows for process management in accordance with the horizontal axis of the CAM-I model and, as proven by the conducted empirical research, it can be implemented within 4 man-days of the implementation team’s work. The most important benefit of dividing the implementation into two steps is that the company gets the information that is useful for management — on the costs of processes, the process assessment measures, and the costs of untapped potential. In view of the previous research linking the success of the ABC implementation with managerial support, it can be assumed that the adoption of a two-step implementation approach will have a positive impact on the dissemination of the TD ABC model.

Uncommon combinations of ICD10-PCS or ICD-9-CM operative procedure codes account for most inpatient surgery at half of Texas hospitals

Study objectiveRecently, there has been interest in activity-based cost accounting for inpatient surgical procedures to facilitate “value based” analyses. Research 10–20years ago, performed using data from 3 large teaching hospitals, found that activity-based cost accounting was practical and useful for modeling surgeons and subspecialties, but inaccurate for individual procedures. We hypothesized that these older results would apply to hundreds of hospitals, currently evaluable using administrative databases. DesignObservational study. SettingState of Texas hospital discharge abstract data for 1st quarter of 2016, 4th quarter of 2015, 1st quarter of 2015, and 4th quarter of 2014. PatientsDischarged from an acute care hospital in Texas with at least 1 major therapeutic (“operative”) procedure. MeasurementsCounts of discharges for each procedure or combination of procedures, classified by ICD-10-PCS or ICD-9-CM. Main resultsAt the average hospital, most surgical discharges were for procedures performed at most once a month at the hospital (54%, 95% confidence interval [CI] 51% to 55%). At the average hospital, approximately 90% of procedures were performed at most once a month at the hospital (93%, CI 93% to 94%). The percentages were insensitive to the quarter of the year. The percentages were 3% to 6% greater with ICD-10-PCS than for the superseded ICD 9 CM. ConclusionsThere are many different procedure codes, and many different combinations of codes, relative to the number of different hospital discharges. Since most procedures at most hospitals are performed no more than once a month, activity-based cost accounting with a sample size sufficient to be useful is impractical for the vast majority of procedures, in contrast to analysis by surgeon and/or subspecialty.

3:45 PMAbstract No. 94 - Time-driven activity-based cost accounting methodology to improve cost-effectiveness in vascular and interventional radiology service at a large university academic medical center

3:45 PMAbstract No. 94 - Time-driven activity-based cost accounting methodology to improve cost-effectiveness in vascular and interventional radiology service at a large university academic medical center

Costs of the diagnostic odyssey in children with inherited leukodystrophies.

Our objective was to determine the extent of testing and costs solely related to diagnosis (the diagnostic odyssey) in a cohort of children with inherited leukodystrophies. We determined all inpatient and outpatient laboratory testing, including brain MRIs obtained for the purpose of diagnosis, over an 8-year time period in a retrospective population cohort of children with inherited leukodystrophies. Costs were determined from an activity-based cost accounting system and were standardized to 2013 constant US dollars. Each patient had on average 20 tests (range 2-42 tests), with costs of $4,200 (range $357-$15,611). Diagnostic yield plateaued after 25 tests, and costs increased significantly after 32 tests. Fifty-three percent of patients were diagnosed in 20 or fewer tests, compared with 17% if more than 20 tests were performed. Our findings provide details on the amount and costs of testing in children who often undergo a diagnostic odyssey. Our results suggest that diagnostic testing is a relatively modest contributor to the overall health care costs in patients with leukodystrophy, and offer insights into the diagnostic odyssey of children with neurologic impairment.

Value in Pediatric Orthopaedic Surgery Health Care: the Role of Time-driven Activity-based Cost Accounting (TDABC) and Standardized Clinical Assessment and Management Plans (SCAMPs).

The continuing increases in health care expenditures as well as the importance of providing safe, effective, timely, patient-centered care has brought government and commercial payer pressure on hospitals and providers to document the value of the care they deliver. This article introduces work at Boston Children's Hospital on time-driven activity-based accounting to determine cost of care delivery; combined with Systemic Clinical Assessment and Management Plans to reduce variation and improve outcomes. The focus so far has been on distal radius fracture care for children and adolescents.