Cost Allocation Research Articles

Direct air capture capacity configuration and cost allocation based on sharing mechanism

Direct air capture (DAC) offers a potential solution for capturing carbon dioxide directly from the atmosphere, making it a promising technology in the field of negative carbon solutions. However, its current stage is characterized by high costs and a lack of maturity, placing it in the early phases of commercial application. To address these challenges, this paper introduces a novel cost-sharing mechanism specifically designed for DAC equipment within the context of carbon emission management in power systems. The aim is to facilitate both DAC capacity configuration and cost allocation. We begin by dissecting the operational principles of DAC and reviewing ongoing demonstration projects. We then pioneeringly devises a unified operational model (UOM) for DAC, which integrates electricity and carbon considerations seamlessly. Following this, we introduce an enhanced version of the carbon emission flow (CEF) theory, customized for DAC deployment. This sets the stage for the design of a DAC-specific carbon capture cost-sharing mechanism. Building on these foundations, we develop a meticulous DAC capacity planning model. This is accompanied by a cost allocation methodology based on the Shapley value framework. The ultimate goal is equitable cost allocation among stakeholders and optimized DAC capacity planning. Case studies validate the efficacy of both the proposed model and the cost allocation methodology. The insights from this study contribute to advancing theoretical frameworks for carbon capture technologies and have practical implications for engineering designs in real-world implementation.

Analysis of Depreciation Methods Based on Cooperative Game Theory — Focusing on the Straight-Line Method

This study develops a model to explain why accounting procedures, also known as Generally Accepted Accounting Principles, are “generally accepted”. For this purpose, we focus on depreciation defined as the rational and systematic allocation of the original cost of an asset over the expected useful life of that asset. We investigate what it means to be “rational” using cooperative game theory. We show that cost allocations determined by the straight-line (SL) method, which is conventionally used worldwide, are elements of the core and that the conditions of the core can be rational in practice. Furthermore, we examine the relationship between the SL method and other solution concepts, such as the Shapley value and the nucleolus. Our next step is to clarify the characteristics besides the core selection of the SL method, those of other depreciation methods used in practice, and the logical relations between these characteristics.

Contribution of Education Costs in Improving the Quality of SMP Examination Results Banten Province in 2023

This research aims to analyze the contribution of education costs in improving the quality of junior high school exam results in Banten Province in 2023. The type of research used is quantitative research with a descriptive approach. The object of this research is junior high schools in Banten Province with a total of 13 schools. The research subjects were school principals and students. Data collection techniques using questionnaires and documentation. The analysis technique used is simple regression and correlation analysis. The results of the research show that 1) there is a high correlation regarding the contribution of education costs in improving the quality of exam results in Indonesian Language and Mathematics with a value of 0.689, 2) the contribution of education costs has an impact of 47.4% in improving the quality of junior high school exam results. In this case, schools that have a higher education cost allocation tend to show better exam results. These findings emphasize the importance of effective management and allocation of education costs to improve the quality of education at the junior high school level.

The agreement theory of innovative solution and the strategic approach to cost management in enhancing the objectivity of cost allocation.

The agreement theory of innovative solution and the strategic approach to cost management in enhancing the objectivity of cost allocation.

PENGARUH PENGUNGKAPAN ENVIRONMENTAL COST DAN CORPORATE SOCIAL RESPONSIBILITY TERHADAP PROFITABILITAS PERUSAHAAN MANUFAKTUR SEKTOR INDUSTRI DASAR DAN KIMIA YANG TERDAFTAR PADA BURSA EFEK INDONESIA PERIODE TAHUN 2018-2022

This study aims to evaluate the impact of environmental cost disclosure and corporate social responsibility (CSR) on the profitability of manufacturing companies in the basic and chemical industries listed on the Indonesia Stock Exchange (IDX) during the period 2018-2022. Utilizing a quantitative approach with data analysis through Eviews software, the research explores the effects of these variables on company profitability. The findings reveal that environmental cost disclosure does not have a significant effect on company profitability. The level of environmental cost allocation does not influence market reactions or investor interest in the company. Conversely, CSR has a positive impact on profitability. CSR is seen as providing a positive signal to investors as it demonstrates the company’s responsibility towards its operational impacts. Simultaneously, the independent variables, namely environmental cost disclosure and CSR, significantly affect profitability, indicating that while environmental cost disclosure does not have a direct impact, CSR plays a crucial role in enhancing company profitability and attracting investor attention. This study aims to provide insights into how environmental cost disclosure and CSR affect company financial performance and how companies can leverage this information for strategic advantages in the capital market.

Comparative Analysis Of Cost Calculation With Activity-Based Costing And Traditional Methods

In the modern business world, accurate cost calculation is crucial for effective decision-making. Traditional methods often fail to reflect actual resource consumption, leading to inaccurate pricing and resource allocation. This research aims to analyze the use of Activity-Based Costing (ABC) and compare it with traditional methods. The research approach is qualitative, employing literature review methods. The findings show that ABC, which allocates costs based on activities performed, provides more realistic and accurate cost estimates. ABC helps companies identify non-value-added activities, improve efficiency, and reduce waste. Although ABC is more complex and expensive to implement, it provides more precise cost information, supporting optimal decision-making regarding pricing, product strategy, and resource allocation. Conversely, traditional methods are simpler but often result in less accurate cost allocation and do not reflect variations in activity consumption. Therefore, ABC is superior in terms of accuracy and effectiveness in identifying waste and inefficient activities, despite requiring technological support and higher initial costs.

Renewable energy allocation in Multi-Owned Buildings for Sustainable Transition: A novel Evidence-Based Decision-Making framework

Adopting Renewable Energy Systems (RES) in Multi-Owned Buildings (MOBs) is critical for achieving sustainability goals, yet the equitable allocation of energy from a jointly-owned RES to individual apartments remains overlooked in practice and literature. Current practices, rooted in models of common cost allocation, fail to address the dynamic traits of energy allocation and disregard the energy entitlement of each apartment, necessitating a tailored approach for renewable energy allocation in MOBs. This paper emphasises energy entitlement and introduces a novel, evidence-based decision-making framework assessing nine distinct energy allocation models for their suitability in diverse MOB typologies, characterised by physical and social factors, and presents a ranked list. Our findings reveal extensive variation in model suitability depending on the building typology. Equal energy allocation minimised financial disparities, while demand-based allocation was significantly effective for older, mid-rise buildings with fewer tenants. Conversely, the flat-fee model was found unsuitable regardless of building type. Furthermore, the study demonstrates that the suitable model for a building typology may not always align with the objectives of RES installation, thus endorsing an ‘objective proximity’ analysis. The proposed framework serves as a valuable guide for stakeholders, including the owners’ corporations, policymakers, and industries, to make well-informed decisions for a smooth transition to renewable energy. It lays the foundation for potential expansion to other building types while underscoring the necessity for adaptive policies in promoting RES adoption.

Cooperative game theory approach towards capital equipment procurement in construction projects: a concrete batch plant case study

This study explores how contractors can benefit from joint resource procurement in construction projects, particularly in case with capital-intensive ones. Capital equipment is costly and has a long beneficial life compared to other resources; hence, minimizing its long-term costs is pivotal. Also, the lack of open dialogue under a legal structure in projects may deprive project participants from many beneficial partnering opportunities. Given this background, a comprehensive framework based on cooperative game theory is introduced to form a systematic partnership among contracting parties to share their capital equipment. Cooperative game theory is suggested as the basis for increase the gains to all parties and fair and efficient allocation of the incremental benefits of cooperation. The proposed flowchart is then applied to a real-world project and various coalitional cooperative game theory solutions for dividing gains equitably, from sharing a site-located concrete batch plant among three contractors are evaluated and the most stable cost allocation is identified. Results reveal that with the application of this cooperative procurement, the three contractors can achieve an average of twenty three percent considerable savings through practical alliance that deliver vast improvements in project productivity and performance.

Learning Organization: The Importance of Employee Training and Development

Abstract Organizational learning is a concept in which an organization continuously develops the ability to learn, adapt, and change. In this context, employee training and development plays an important role to ensure that organizations remain competitive and successful in an ever-changing environment. This article discusses the importance of employee training and development in learning organizations, the challenges faced in their implementation, as well as strategies for implementing them effectively. Among the main interests discussed are increased productivity and work performance, employee retention, increased profitability, adaptation to technological changes, the development of internal talents, as well as the formation of a positive organizational culture. However, there are some challenges that need to be addressed, such as cost and resource allocation, difficulty measuring ROI, employee resistance to change, as well as difficulty identifying the right training needs and ensuring the transfer of learning to the workplace. Effective implementation strategies include careful assessment of training needs, appropriate program design, use of technology in training, as well as continuous evaluation and feedback. Top management support, integration with business strategies, and the creation of a learning culture are also essential for successful implementation. Overall, this article emphasizes the importance of employee training and development in ensuring that organizations continue to learn, innovate, and grow in an ever-changing environment

The Tumor Risk Score (TRS) – next level risk prediction in head and neck tumor surgery

PurposeHead and neck cancer surgery often requires postoperative monitoring in an intensive care unit (ICU) or intermediate care unit (IMC). With a variety of different risk scores, it is incumbent upon the investigator to plan a risk-adapted allocation of resources. Tumor surgery in the head and neck region itself offers a wide range of procedures in terms of resection extent and reconstruction methods, which can be stratified only vaguely by a cross-disciplinary score. Facing a variety of different risk scores we aimed to develop a new Tumor Risk Score (TRS) enabling anterograde preoperative risk evaluation, resource allocation and optimization of cost and outcome measurements in tumor surgery of the head and neck.MethodsA collective of 547 patients (2010–2021) with intraoral tumors was studied to develop the TRS by grading the preoperative tumor size and location as well as the invasiveness of the planned surgery by means of statistical modeling. Two postoperative complications were defined: (1) prolonged postoperative stay in IMC/ICU and (2) prolonged total length of stay (LOS). Each parameter was analyzed using TRS and all preoperative patient parameters (age, sex, preoperative hemoglobin, body-mass-index, preexisting medical conditions) using predictive modeling design. Established risk scores (Charlson Comorbidity Index (CCI), American Society of Anesthesiologists risk classification (ASA), Functional Comorbidity Index (FCI)) and Patient Clinical Complexity Level (PCCL) were used as benchmarks for model performance of the TRS.ResultsThe TRS is significantly correlated with surgery duration (p < 0.001) and LOS (p = 0.001). With every increase in TRS, LOS rises by 9.3% (95%CI 4.7–13.9; p < 0.001) or 1.9 days (95%CI 1.0-2.8; p < 0.001), respectively. For each increase in TRS, the LOS in IMC/ICU wards increases by 0.33 days (95%CI 0.12–0.54; p = 0.002), and the probability of an overall prolonged IMC/ICU stay increased by 32.3% per TRS class (p < 0.001). Exceeding the planned IMC/ICU LOS, overall LOS increased by 7.7 days (95%CI 5.35–10.08; p < 0.001) and increases the likelihood of also exceeding the upper limit LOS by 70.1% (95%CI 1.02–2.85; p = 0.041). In terms of predictive power of a prolonged IMC/ICU stay, the TRS performs better than previously established risk scores such as ASA or CCI (p = 0.031).ConclusionThe lack of a standardized needs assessment can lead to both under- and overutilization of the IMC/ICU and therefore increased costs and losses in total revenue. Our index helps to stratify the risk of a prolonged IMC/ICU stay preoperatively and to adjust resource allocation in major head and neck tumor surgery.

A multi-ship power sharing strategy: Using two-stage robust optimization and Shapley value approach

In recent years, the use of cold ironing (CI) has effectively reduced the carbon emissions of ships in port areas. However, due to the limitation of port CI quantity and power supply capacity, the power demand of some ships cannot be met. To solve this problem, this paper proposes a multi-ship power sharing strategy based on two-stage robust optimization and improved Shapley value method. Firstly, considering the uncertainty of ship photovoltaic power generation, a multi-ship power sharing model based on two-stage robust optimization is established. This model is a three-level optimization model with mixed integer variables, which is a NP-hard problem. In this paper, the nested column-and-constraint generation algorithm combined with duality theory and big-M method is used to obtain the optimal scheduling strategy of ship shared power, CI power and load demand response power. Secondly, an improved Shapley value method considering berth and remaining berthing time is proposed to realize the cost allocation in the process of ship power sharing. Finally, the effectiveness of the multi-ship power sharing strategy in reducing berthing costs and carbon emissions is verified by simulation. This method is expected to provide a new idea for the development of green ports.

Investment allocation in an adjustment-cost production technology framework for two-stage network structures

Effective resource allocation can assist organizations in utilizing infinite resources, thereby improving efficiency and productivity. For an organization, investment is an essential production resource, and how to appropriately allocate investment is one of the most important decisions they need to make. This study aims to rationally allocate investment across each stage of two-stage network structure under two scenarios. We first propose general investment allocation model with adjustment costs to efficiently allocate investments across each stage. Then, given a fixed total investment, we use the DEA-based fixed cost allocation method to achieve the optimal allocation across stages, and we also incorporate two cooperative and noncooperative relationships between two stages. Additionally, capital stock efficiency is defined to analyze the relationship between optimal and actual capital stocks, clarifying the degree to which the optimal capital stock is reached. Finally, the proposed approach is applied to 14 A-share listed companies in China, and suggestions on the optimal amount of investment allocation and capital stock required are provided to facilitate organizational production.

Enhancing DDBMS Performance through RFO-SVM Optimized Data Fragmentation: A Strategic Approach to Machine Learning Enhanced Systems

Effective data fragmentation is essential in enhancing the performance of distributed database management systems (DDBMS) by strategically dividing extensive databases into smaller fragments distributed across multiple nodes. This study emphasizes horizontal fragmentation and introduces an advanced machine learning algorithm, Red Fox Optimization-based Support Vector Machine (RFO-SVM), designed for optimizing the data fragmentation process. The input database undergoes meticulous pre-processing to address missing data concerns, followed by analysis through RFO-SVM. This algorithm efficiently classifies features and target labels based on class labels. The RFO algorithm optimizes critical SVM parameters, including the kernel, kernel parameter, and boundary parameter, leveraging the accuracy metric. The resulting classified data serves as fragments for the fragmentation process. To ensure precision in fragmentation, a Genetic Algorithm (GA) allocates these fragments to diverse nodes within the DDBMS, optimizing the total allocation cost as the fitness function. The proposed model, implemented in Python, significantly contributes to the efficient fragmentation and allocation of databases in distributed systems, thereby enhancing overall performance and scalability.

Optimal scheduling of flexible grid-side resources and auxiliary service cost allocation model considering renewable-energy penetration

Abstract Renewable energy has penetrated power grid enterprises on a large scale. Due to the intermittency and volatility of renewable energy generation, it is necessary to build new flexible grid-side resources to ensure the safe and stable operation of the power grid, which will cause great pressure on cost allocation for power grid enterprises. This article considers four types of flexible grid-side resources and constructs a dual-level configuration optimization model for flexible grid-side resources under the penetration of renewable energy. Based on the configuration results, the cost scale of flexible grid-side resources is estimated and an improved ancillary service cost allocation model based on the Shapley value method is proposed to smooth the allocation of ancillary service costs in the cost of flexible grid-side resources between the two main bodies of renewable energy and load. The calculation results show that, when the penetration rate of renewable-energy power is 30% and 35%, respectively, the cost of flexible grid-side resources is 9.606 billion yuan and 21.518 billion yuan, respectively. The proportion of ancillary service costs allocated to load is relatively high—about five times that of the ancillary service costs allocated to renewable energy—and the higher the penetration rate of renewable energy, the higher the proportion of ancillary service costs allocated to renewable energy.

A novel exergy-based cost and carbon footprint allocation method in the multi-energy complementary system

Energy efficiency, economic cost and carbon emission of multi-energy complementary systems are three key indicators to sustainable development in the low-carbon background. This paper analyzes the coupling relationships between energy, cost, and carbon emission flows in a combined cooling, heating, and power (CCHP) system. The CCHP system consists of biomass gasification, co-firing internal combustion engine by product gas and natural gas, concentrated photovoltaic thermal solar collector, and absorption heat pump. A novel exergo-carbon method with exergo-economic analyses is proposed to determine the exergy cost and carbon footprint rate of each stream in the CCHP system, and the unit cost and carbon footprint of multiple products of electricity, cold energy and heat energy are obtained by the proposed method. The impacts of co-firing ratio and photovoltaic coverage ratio on energy and exergy efficiencies and cost and carbon footprint of products are analyzed. The sensitivity of biomass carbon footprint is performed to show its influences. The total cost of products including economic and carbon costs, is discussed to guide the carbon market's pricing strategies. Under the design conditions, the unit exergy cost of electricity, chilled water and hot water are 0.1094, 0.7659 and 0.466 $ (kWh exergy)−1, and their unit exergy carbon footprints are 0.3651, 3.9050, and 2.3780 kg CO2-eq (kWh exergy)−1, respectively.

Central Heating Control Charts for the Economic Use of Energy in Residential Buildings

Methods and types (qualitative, quantitative or mixed) of control of central heating installations in residential buildings are presented. Measurements were made for a radiator in a central heating system that was powered by a heating node substation. The output temperature of the heat node supplying the residential building, in which the test stand was located, was compared with the measured supply and return temperature. Indoor room temperature, outdoor air temperature, inflow and outflow temperature on the vertical supplying the heater were also recorded and analysed. These data were compared with the control charts of the heat networks allowing for direct readings of the required feed water temperature for a given outdoor temperature according to the Heat Energy Enterprises data. The differences are accordingly presented. The actual measurements, read at the test stand located on the 2nd floor of the 4-storey building with input parameters of 90/70 °C during the entire month of December 2022, are recorded every 6 hours and are tabulated and displayed in comparison charts with the calculated parameters. Inflow and outflow temperatures values on the vertical supplying the heater and the values of outdoor temperature measured by a sensor were analysed. The temperatures supplied to the radiators in the apartments were also compared with the requirements of electronic heating cost allocators contained in the PN EN 834 standard. New design temperatures for the central heating installation were proposed due to the requirements of the electronic heating cost allocator.

Occupational Health &amp; Safety Cost Analysis in Civil Construction Projects

Introduction: Occupational Health and Safety (OHS) costs are crucial for implementing safety management systems in the construction sector, particularly in Indonesia. Previous studies emphasize the potential benefits of effective OHS cost planning in reducing workplace accidents and associated costs. Objective: This study aims to analyze the allocation of OHS costs and its correlation with workplace accidents across various construction projects in Indonesia. Method: A descriptive analysis approach was employed to examine OHS cost allocation and incident rates in ten construction projects conducted by a state-owned company across multiple regions in Indonesia. Data analysis utilized Microsoft Excel and SPSS, with Pearson correlation tests conducted to assess relationships between variables. Result: The study found significant variation in OHS cost allocation, ranging from 0.20% to 1.23% of project value across different projects. Larger projects tended to allocate a lower percentage of their budget to OHS compared to smaller ones. Conclusion: Effective planning of OHS costs is essential not only in terms of percentage allocation but also considering project size, duration, workforce size, and technological aspects. The study underscores the importance of comprehensive cost-benefit analyses to further understand the impact of OHS provision on accident prevention in construction projects.

Cost Allocation for Inventory Problem with Transportation Discount under Carbon Tax Policy

Cost Allocation for Inventory Problem with Transportation Discount under Carbon Tax Policy

Dynamic incentive mechanisms in mega project-risk management considering the participation of the insurance company

PurposeThe construction of megaprojects often involves substantial risks. While insurance plays an important role as a traditional risk transfer means, owners and insurance companies may still suffer huge losses during the risk management process. Therefore, considering the strong motivation of insurance companies to participate in the on-site risk management of megaprojects, this study aims to propose a collaborative incentive mechanism involving insurance companies, to optimize the risk management effect and reduce the risk of accidents in megaprojects.Design/methodology/approachBased on principal-agent theory, the research develops the static and dynamic incentive models for risk management in megaprojects, involving both the owner and insurance company. The study examines the primary factors influencing incentive efficiency. The results are numerically simulated with a validation case. Finally, the impact of parameter changes on the stakeholders' benefits is analyzed.FindingsThe results indicate that the dynamic incentive model is available to the achievement of a flexible mechanism to ensure the benefits of contractors while protecting the benefits of the owner and insurance company. Adjusting the incentive coefficients for owners and insurance companies within a specified range promotes the growth of benefits for all parties involved. The management cost and economic benefit allocation coefficients have a positive effect on the adjustment range of the incentive coefficient, which helps implement a more flexible dynamic incentive mechanism to motivate contractors to carry out risk management to reduce risk losses.Originality/valueThis study makes up for the absence of important stakeholders in risk management. Different from traditional megaproject risk management, this model uses insurance companies as bridges to break the island effect of risk management among multiple megaprojects. This study contributes to the body of knowledge by designing appropriate dynamic incentive mechanisms in megaproject risk management through insurance company participation, and provides practical implications to both owner and insurance company on incentive contract making, thus achieving better risk governance of megaprojects.

ANALYSIS OF JOINT COST ALLOCATION IN DETERMINING COST OF GOODS PRODUCTION

This scientific research paper aims to provide a detailed understanding of joint cost analysis using the 4(four) methods: physical, sales value at split-off point, net realizable value and constant-gross matgin method. This is research aims to provide information for cake store X on how to manage the costs of production, and to improve the management strategies, for it is known that the store uses the simplest recording of accounting which records only the purchase of inventory while deducting it from the sales of finished goods to determine the profit for the year. The results from this research is the most effective joint cost allocation method for cake shop X is the physical method because it is easy to implement.