Actual Production Costs Research Articles

Economic Overhaul Mode of Steam Engine Professional Equipment in Thermal Power Plant

To ensure that the daily production activities of thermal power plants can produce their due effect in the production and business activities, it is necessary to carry out efficient and orderly maintenance work on the professional equipment of steam engines. However, the maintenance work of steam engine professional equipment in thermal power plants usually uses high-cost expenditures. Therefore, how to take effective measures to reduce the cost of professional equipment maintenance in thermal power plants has become a problem that needs to be solved before such maintenance can proceed. Among them, through the application of economic maintenance equipment in thermal power plants, the actual production and operation costs can be effectively reduced. Based on this, the author will analyze the application of the model of economic maintenance of steam engine professional equipment in thermal power plants.

Cost of Cultivation is Rising or Profitability Rising for Major Pulse Crop? A Case from Rajasthan, India

Background: The basic challenge every farmer in India faces is to increase profitability level and minimize the cost. For this, it is essential to know how the cost of cultivation and profitability is changing of crops over a period of time. The present study attempted to estimate the cost of cultivation, cost of production and returns of major pulse crops in the Rajasthan state. For workout the economics of pulses crop, secondary data was collected from 2000-01 to 2021-22 which is compiled from various sources and publications for profitability analysis of pulse crop. Methods: The study was conducted in Rajasthan state and analysis done for 22 years used the “Cost of Cultivation of Principal Crops in Rajasthan” by DES, New Delhi uses different cost concepts for estimating costs and returns. In the present study, the cost C2 was considered for computing profitability. Cost C2 in CCPC data covers all the variables and fixed costs. Result: The actual cost of production of gram crop increased from Rs. 1772.32 per quintal in TE 2003 to Rs. 3650.5 per quintal in TE 2021. Return per rupee invested increased from 2.52 to 3.01 during TE 2003 to TE 2021. Cost of production of urad crop had increased from Rs. 2520.63 per quintal in TE 2003 to Rs. 7385.45 per quintal in TE 2021. The return per rupee invested in cost A2 had reduced from 2.14 in TE 2003 to 1.99 in TE 2021. Moong crop also showed increasing trend for cost of production from Rs. 2696.08 per quintal in TE 2003 to Rs. 7385.45 per quintal in TE 2021. Return for each rupee invested a increased from 2.10 in TE 2003 to 2.14 in TE 2021. Return per rupee invested was not profitable for the farmers for urad. Therefore, proper processing and procurement policy for these crops grown by the farmers should be implemented. Urad crop need more efficiently technological breakthrough to reduce cost of production and proper price incentive to pace with other pulses crops in the state.

The effect of hydropower bidding strategy on the iberian day-ahead electricity market

In 2021, the Iberian Electricity Market, which includes Portugal and Spain, experienced a significant increase in electricity prices. On average, prices tripled compared to pre-pandemic levels in 2019, despite stable demand. This trend, though less pronounced in other European markets, has raised concerns about the efficiency and competitiveness of wholesale electricity markets. This study investigates the bidding behavior of non-pumped hydropower plants in the Iberian market, employing a merit order model based on real data from 2019 to 2021. The analysis reveals a clear mismatch between hydropower bid prices and actual production costs. Although this practice is legal, it conflicts with the European Union's goal of promoting fair competition within the internal electricity market.Our findings suggest that aligning hydropower bid prices with 2019 levels could have reduced annual market costs by approximately 2324 million euros under a moderate scenario. This indicates substantial potential for cost savings and improved integration of hydropower. However, this strategy also benefits companies that own these hydropower plants, as they often possess large portfolios and can capitalize on increased market prices through other plants, particularly renewable energy units, which offer electricity at very low prices and have a high likelihood of being dispatched.Furthermore, the study highlights regulatory gaps allowing hydropower plants to price low-cost energy similarly to thermal plants, raising consumer costs and distorting market dynamics. These findings emphasize the need for stronger regulatory oversight and reforms to prevent excessive price inflation by hydropower, which plays a critical role in renewable energy integration and grid stability. Policymakers must ensure fair pricing while compensating hydropower plants for their flexibility and essential contributions to the energy system.

Penetapan Biaya Standar Sebagai Pengendalian Biaya Produksi Pada Avos Coffee And Resto Medan

Avos Coffee and Resto Medan produces 1,000 cups of coffee every day with a predetermined sales target. However, this target is difficult to achieve and uncontrolled production costs can reduce profits, so control is needed. The aim of this research is to analyze the application of standard costs to control production costs at Avos Coffee and Resto Medan. This research is a descriptive qualitative research using data on actual production costs and standard production costs with one difference model deviation analysis calculations. Data collection techniques using observation, interviews and documentation. The results of this research show that the implementation of standard costs that has been carried out at Avos Coffee and Resto Medan is not optimal, this is because the main indicators are raw material costs, direct labor costs and factory overhead costs which are quite optimal. However, there were adverse deviations in raw material costs caused by price increases in December, causing them to be less than optimal, while direct labor costs and factory overhead costs were in a fairly optimal condition. Even though it is not optimal and there are many obstacles experienced, Avos Coffee and Resto Medan is able to maintain its business and continue producing. So by implementing these standard costs, Avos Coffee and Resto Medan can maintain its consistency and become better in the future.

Cost modelling for dimension stone quarry operations

Dimension stone mining is Increasing because of growing demand from the building and construction industries. Diamond wire saw cutting is a popular dimension stone mining technique around the world. Estimation of the production cost for this method is critical for these operations. In this research a production cost model was developed for the mining of granite using a diamond wire saw. Cost and production data were collected from a granitic dolerite operation in Pakistan for a 4.5-year period, and analysed to identify the cost components. Fuel (34%), labour (15%), consumables (40%), and maintenance (5%) were found to be the four major cost components in this operation. A regression-based dimension stone production cost model incorporating statistically significant variables was developed. The data presented a strong correlation of production cost with fuel, labour, and consumables costs. Finally, a production cost model based on the consumption cost of diamond wire is presented. The model was verified using actual production cost data, which indicated 95% (R2 = 0.95) variance in the data between the predicted and actual production cost values. The model may help field engineers in computing their dimension stone operational cost during the cutting phase.

ANALISIS EFISIENSI BIAYA BAHAN BAKU, BIAYA TENAGA KERJA LANGSUNG DAN BIAYA OVERHEAD PABRIK TERHADAP RASIO PROFIT MARGIN PADA MIE AYAM BAKSO CAK NO SOLO

This study aims to analyze the efficiency of raw material costs, direct labor costs and factory overhead costs on the profit margin ratio at Bakso Cak No Solo Chicken Noodle. By doing cost efficiency, it can increase maximum profit. The study used a qualitative approach and descriptive data analysis techniques. Analysis of production cost efficiency uses a comparison between actual production costs and budget production costs. In this study using data from observation, interviews and documentation. From this study obtained the results that the efficiency of production costs on raw materials at the meatball chicken noodle shop is inefficient with a percentage of 125%, this shows that there is a difference between the actual production costs of raw materials. Thus, causing the Cak No Solo Meatball Chicken Noodle shop to experience a loss of Rp. 500,000. After making the efficiency of raw material costs, it was found that the actual raw material costs decreased by IDR 505,000, because of this the production costs became efficient with a percentage of 99%. With the efficiency of production costs, the profit earned by business actors increased by 0.94%, namely IDR 505,000. The NPM result of 81.03% is also obtained, which means that business actors are more efficient in managing costs and generating maximum profits from sales. The higher the NPM value means that the finances in the business are healthier and better.

ANALISIS VARIAN SEBAGAI ALAT PENGENDALIAN BIAYA PRODUKSIPADA PTPN VIII UNIT CIKASUNGKA BOGOR, JAWA BARAT

This study aims to investigate and determine how the production cost budget is used to control production costs at PTPN VIII Unit Cikasungka in Bogor Jawa Barat, as well as to analyze and determine what causes the disparity between the budget and the actual realization of unfavorable production costs at PTPN VIII Unit Cikasungka in Bogor, Jawa Barat. This study also compare the company's production cost budget with the actual production costs at the end of the period and analysis of variance on the deviations. The type of research data used in this study is the type of quantitative data. The quantitative data in this study namely production cost data in the Company's Work Plan and Budget and realization at PTPN VIII Unit Cikasungka Bogor, West Java. Data collection techniques in conducting this research are techniques documentation, literature study and observation. The data analysis method used is a descriptive method, namely by thoroughly decrypting the data obtained during the process research. The research methods used in research in PTPN VIII Cikasungka Unit is: analysis of raw material cost variance, direct labor cost of one difference, two difference, and three difference, and factory overhead cost analysis of one difference. The results reveal that the production cost budget, that was used to control production costs at PTPN VIII Unit Cikasungka in Bogor Jawa Barat, was not truly effective.

Development of optimal placement and sizing of FACTS devices in power system integrated with wind power using modified krill herd algorithm

PurposeThis study aims to intend and implement the optimal power flow, where tuning the production cost is done with the inclusion of stochastic wind power and different kinds of flexible AC transmission systems (FACTS) devices. Here, the speed with fitness-based krill herd algorithm (SF-KHA) is adopted for deciding the FACTS devices’ optimal sizing and placement integrated with wind power. Here, the modified SF-KHA optimizes the sizing and location of FACTS devices for attaining the minimum average production cost and real power depletions of the system. Especially, the objective includes reserve cost for overestimation, cost of thermal generation of the wind power, direct cost of scheduled wind power and penalty cost for underestimation. The efficiency of the offered method over several popular optimization algorithms has been done, and the comparison over different algorithms establishes proposed KHA algorithm attains the accurate optimal efficiency for all other algorithms.Design/methodology/approachThe proposed FACTS devices-based power system with the integration of wind generators is based on the accurate placement and sizing of FACTS devices for decreasing the actual power loss and total production cost of the power system.FindingsThrough the cost function evaluation of the offered SF-KHA, it was noted that the proposed SF-KHA-based power system had secured 13.04% superior to success history-based adaptive differential evolution, 9.09% enhanced than differential evolution, 11.5% better than artificial bee colony algorithm, 15.2% superior to particle swarm optimization and 9.09% improved than flower pollination algorithm.Originality/valueThe proposed power system with the accurate placement and sizing of FACTS devices and wind generator using the suggested SF-KHA was effective when compared with the conventional algorithm-based power systems.

THE MANAGEMENT OF ROAD WORK COST BY THE DIRECT CALCULATION METHOD

The article outlines provisions for the establishment of a road works cost management system throughout all stages of project development and implementation. Such a system can be established by accurately determining the complete and actual cost structure of production and subsequently monitoring its adherence during the execution of labor processes that shape the project. It is recommended to ascertain the actual production cost structure using the principles of what is known as direct costing, where calculations are based on information related to the labor processes organization. Information concerning the real planned cost structure of production and the recording of actual costs of its components is conducted within the framework of the method for determining production costs and the existing accounting and reporting system. Based on a further analysis of data regarding planned and actual costs for each cost component, management decision-making procedures are implemented to adjust the development and implementation of labor processes with the goal of achieving a high-quality and loss-free project execution.

Production Cost Control using Activity-Based Costing Methods in Information Systems

Companies engaged in furniture manufacturing with marketing targets mostly abroad are faced with very tight price and quality competition that requires a more accurate production costing system than traditional methods, which are still widely used in Indonesia. In general, companies use cost calculation methods that pay attention to only one cost driver, resulting in deviations in the calculation of actual production costs. A production cost calculation method is proposed using activity-based costing to overcome this problem. Many companies have used this method in developed countries, showing improvements in calculating production costs. The activity-based calculation method takes into account the activities that are cost drivers and is taken into account in obtaining actual production costs. So that the cost planning for the management is better, in this study, calculations using traditional methods are shown, and the results are compared with the results of the activity-based costing (ABC) method. Then an analysis of the system needed for applying the information system-based ABC method and the proposed implementation is also carried out. The information system will help calculate costs faster and more accurately.

METHODOLOGY FOR CALCULATING THE COST PRICE OF THE BENDING PROCESS FOR THE NEEDS OF MANUFACTURING LOGISTICS

The research of this paper aims to characterize and describe the methodological sequence of operations necessary for the correct calculation of the cost price when performing a bid calculation in the bending process step on a bending machine. The research focuses on determining the methodology and its application exclusively to sheet metal parts in the engineering industry in the processing of steel and stainless-steel sheets. To research this issue, we used empirical and quantitative research in a real work environment. The methodology for calculating the cost price of bending sheet metal parts yields the relationships between component inputs, the result of which is a time parameter that is expressed by the actual production costs. The results can be used in the real working environment of manufacturing companies for comparison with already established practices and a verification of their outputs. At the same time, it is possible to use the determined methodological procedure as a basis for implementation in the Aurendi web application.

Resource Overall Equipment Cost Loss indicator to assess equipment performance and product cost

PurposeThis paper aims to overcome the inability of both comparing loss costs and accounting for production resource losses of Overall Equipment Effectiveness (OEE)-related approaches.Design/methodology/approachThe authors conducted a literature review about the studies focusing on approaches combining OEE with monetary units and/or resource issues. The authors developed an approach based on Overall Equipment Cost Loss (OECL), introducing a component for the production resource consumption of a machine. A real case study about a smart multicenter three-spindle machine is used to test the applicability of the approach.FindingsThe paper proposes Resource Overall Equipment Cost Loss (ROECL), i.e. a new KPI expressed in monetary units that represents the total cost of losses (including production resource ones) caused by inefficiencies and deviations of the machine or equipment from its optimal operating status occurring over a specific time period. ROECL enables to quantify the variation of the product cost occurring when a machine or equipment changes its health status and to determine the actual product cost for a given production order. In the analysed case study, the most critical production orders showed an actual production cost about 60% higher than the minimal cost possible under the most efficient operating conditions.Originality/valueThe proposed approach may support both production and cost accounting managers during the identification of areas requiring attention and representing opportunities for improvement in terms of availability, performance, quality, and resource losses.

ANALISIS VARIANS DALAM PENERAPAN STANDARD COSTING UNTUK PENGENDALIAN BIAYA PRODUKSI

ABSTRACTProduction quality control is very important in ensuring the success of the production process. One of the The company is engaged in the plywood industry in its operations expecting maximum profit oriented with the lowest possible cost. For that required sacrifice costs. One of the cost control tools that can be used is standard costs. Standard costs are costs that are determined in advance, which is the amount of costs that should be incurred to make one unit of product.The purpose of the study was to determine the amount of difference between the standard costs set and the actual costs. The approach used in this research is descriptive quantitative. Interview data collection techniques and documentation. The data analysis technique in this study uses analysis of variance on production costs. The conclusion of the research based on the applied standard costs can make a comparison of the actual production costs and can know the deviations that occur in production costs. There is a profitable difference in 2021 of IDR 48,016,040 with this, the company should take corrective actions to support controlling production costs, the company can evaluate the previous period to be used as a guide for the next period.Keywords: Standard Cost, Analysis of Variance, Control

Domestication and value addition of Artocarpus lakoocha

A study has been conducted in Joida taluk of Uttara Kannada district, Karnataka to assess the utilization,constraints and probable outcome expected by the Artocarpus lakoocha tree. A semi structured questionnairesurvey was conducted among the local people of different villages of Joida taluk. This species acts as asecondary source of income for rural people. The steps involved in the processing and marketing wererecorded. The actual market rate and cost of production was assessed and cost- benefit ratio was calculated.The cost-benefit ratio being 1:1.6 or 1:2 shows that value addition of this fruit is economically viable. Thoughthis fruit tree is only semi domesticated it provides plenty of products. Domestication and value addition ofthis fruit tree will be boon to the villagers as well as small scaled industries.

Brewing and Nutrient Composition Analysis of Dendrobium Beer

There are few studies on adding dendrobium as an auxiliary material to beer at home and abroad. In this study, dendrobium as an auxiliary material was added to the brewing of beer. Considering the comprehensive antioxidant effect, physical and chemical index and actual production cost, the added amount of Dendrobium is 8 ‰.Through detection and comparison, the antioxidant activity of Dendrobium beer is much higher than that of other beer, the polysaccharide content and flavonoids content are also increased compared with other beer, and the physical and chemical indicators meet the national standards.

Environmental externalities of wood pellets from fast-growing and para-rubber trees for sustainable energy production: A case in Thailand

Wood pellets are one of biomass-based energy carriers considered important as renewable energy source. This study considers wood pellets for heat and power generation from fast-growing Leucaena and Acacia trees and para-rubber trees in a life cycle perspective. The objectives of this study are to estimate the actual cost (including environmental externalities) of heat and electricity production from wood pellets, and comparison with the external cost of fossil fuels, as well as forecasting the external cost arising from the increase in wood pellet demand. For both heat and electricity production, it was seen that when external costs are included, wood pellets are cheaper than lignite and fuel oil although the latter are cheaper when only internal costs are considered. Four recommendations for reducing the external costs of wood pellet production are: 1) to support sustainable agriculture for para-rubber trees and fast-growing trees, 2) to consider clean transportation in the supply chain, 3) wood pellet factory zoning, including good logistics, and 4) considering the external cost of wood pellets for polluter pays principle. These results and recommendations of the study can provide important information to consider towards adjusting the national energy plan and to have strict measures for avoiding problem shifting from the use of non-renewable resources (fossil fuels) to issues related to the use of biomass-based fuels (use of agro-chemicals, forest encroachment, and so on).

Optimal channel selection of remanufacturing firms with considering asymmetric information in platform economy

With the rapid development of e-commerce platforms, and considering that online return rate is relatively high and third-party stores on e-commerce platforms need to adopt third-party logistics, thus remanufacturing firms face the challenge of deciding whether to enter e-commerce platforms. To address this challenge, our paper considers a remanufacturing firm, an e-commerce platform, and a third-party logistics provider. Moreover, according to whether the remanufacturing firm enters the platform and whether the information is symmetrical, we develop three theoretical models: Model NP (the firm doesn’t enter platform), Model YP (the firm enters platform with symmetric information) and Model YA (the firm enters platform with asymmetric information). Some main insights are obtained. We find that whether remanufacturing firms should enter the platform depends not only on the annual service fee charged by the platform but also on the carbon tax price set by the government. Interestingly, improved consumers’ satisfaction with online remanufactured products is not necessarily conducive to enhancing the willingness of remanufacturing firms to enter e-commerce platforms. Finally, we find that when the production quantity constraint of the remanufactured products is not binding, if the actual production cost of remanufactured products is high and consumers’ satisfaction with offline remanufactured products is relatively low, information disclosure will benefit remanufacturing firms, however, when the production quantity constraint of the remanufactured products is binding, information disclosure has no impact on the remanufacturing firms’ profits and operational decisions.

Features of cost accounting and calculation of the cost of production of honey-pollinating direction of beekeeping

Beekeeping has a high value due to the commercial products obtained and the creation of opportunities for natural pollination of agricultural crops in order to increase their yield. Based on this, intensive farming territories have a great potential in the development of the industry. The article describes the features of calculating the products of honey-pollinating direction of beekeeping; the composition and structure of production costs, the procedure for calculating the actual cost of production of honey-pollinating direction of beekeeping are considered. The subject of the study is the system of cost accounting and calculation of the cost of production of honey-pollinating direction of beekeeping in the Stavropol Territory. The information base was the forms of specialized reporting of agricultural organizations of the Stavropol Territory. The scientific novelty of the research consists in the development of methods for calculating the cost of beekeeping products of an economy that has a honey-pollinating direction.

ACCOUNTING, ANALYSIS AND INTERNAL CONTROL OF THE CALCULATION PROCESS AT FULL COST: DOMESTIC AND INTERNATIONAL EXPERIENCE

The results of the enterprise directly depend on the income received and expenses incurred. Accounting in a broad sense should not only provide information to determine the result of work, but also to develop a rational system of collecting and processing information, ie to offer the most optimal way of knowing the objects of study. As for the calculation of the financial result of the period, its result will directly depend on how fully and systematically we calculate the costs. Moreover, this is actually the choice of the most effective method of cost accounting for the company. That is why the topic of scientific article is relevant and needs further development and research. Methods of accounting for production costs and costing belong to the field of research and combine a set of methods and techniques that allow you to effectively and efficiently perform accounting tasks for these costs. These methods and techniques consist of such accounting procedures as documentation, systematic and consistent reflection of costs, determination of the actual cost of production, as well as justification of the order of allocation of costs per unit of output.

Value-Added Tax (VAT) and Sustainability in the European Union: A Radical Proposal Design Issues, Legal Aspects, and Policy Alternatives

This article aims to examine how the implementation of environmental taxes could build on the success of value-added tax (VAT) to become more efficient and consistent. This is not to increase the overall tax burden on citizens but to reorganize existing indirect taxation differently by better taking into account European Union (EU) environmental objectives, in particular regarding the circular economy. With its broad tax base, its systemic structure based on neutrality (which does not exclude differentiation), its wide acceptance among taxpayers, and its proven compliance process, the VAT has some features that could inspire environmental policymakers. It indeed impacts consumer choices at the broadest possible level while avoiding distortions. The authors begin by identifying the reasons for the success and robustness of VAT. A new concept of ‘green VAT’ will then be proposed based not on the classical instrument of reduced rates for specific transactions as is already done and advocated by EU institutions (European Commission, Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions, A new Circular Economy Action Plan. For a cleaner and more competitive Europe, COM(2020) 98 final (11 Mar. 2020). See also Opinion of the European Committee of the Regions – New Circular Economy Action Plan (2020/C 440/18), OJ C 440/107 (18 Dec. 2020), para. 23.) but on a coherent life cycle approach to all goods and services. This new approach identifies negative externalities by following the same value chain as the VAT. It aligns as much as possible with the administration and compliance methods already implemented by the VAT. Finally, a possible virtual use of the new green VAT concept will be presented. It does not require any legislative changes. It takes the form of a ‘virtual tax’ that appears on the price tag of every product without being effectively paid and may be used as an indicator for the actual environmental cost of production. VAT, EU harmonization, environmental taxation, sustainability, life-cycle assessment.