Cost Allocation Research Articles

Optimal Energy Configuration of Integrated Energy Community Considering Carbon Emission

An integrated energy community with a distributed utilization of renewable energy and complementary electricity–gas–cold–heat integrated energy will play an important role in energy conservation and emission reduction. In addition, compared with traditional thermoelectric power equipment, solid oxide fuel cells have many advantages, such as a high energy utilization rate, good waste heat quality, and low carbon emissions. Therefore, the SOFC-based multi-energy and energy storage sharing operation model of an integrated energy community with an electricity–gas–cooling–heat integrated energy system is constructed, and a bi-objective optimal configuration model considering the carbon emission index is established. Considering the economic objective of the smallest annual total operating cost as the most important objective in optimizing the planning model, the ε-constraint method is used to transform the environmental objective function with the smallest annual total carbon emission into a constraint condition under the decision making of an economic single objective function, and then the planning model is linearized and solved by using the Big-M method and the McCormick relaxation method. By calculating and analyzing the energy allocation results in five scenarios, the effectiveness and rationality of the model built in this article are verified. At the same time, the calculation example analysis results show that as the ε value decreases, the energy configuration of the integrated energy community will shift from natural gas to clean energy. From this perspective, the energy equipment configuration and operating costs will increase. However, the heat storage system and power storage system sharing can effectively reduce the energy allocation capacity and costs.

Joint Production Cost Allocation in Determining Cost of Goods Production to Optimize Profits

PT Kemang Food utilizes the selling price method and the average per unit method for allocating joint production costs to its main products and by-products. The company produces sausages, burgers, delicatessen, meatballs, and a by-product consisting of beef and MDM (Mechanically Deboned Meat) from chicken esophagus, breastbone, and thigh. The study reveals that, according to the profit achievement policy and the targeted cost calculation, the selling price method is more profitable than the average per unit method. The profit obtained through the selling price method exceeds that of the average per unit method. Despite this, both methods experienced a decline in profits in 2020 due to the COVID-19 pandemic, as evidenced by trend analysis. Managerial implications stress the significance of accurate cost determination for optimizing company profits, especially during challenging times such as the pandemic. This underscores the need for adaptability in cost allocation strategies to maintain financial health and achieve optimal production costs in the face of external disruptions. The findings emphasize the importance of strategic decision-making in managing joint production costs for sustainable profitability

A joint solution framework for the optimal operation and evaluation of integrated energy systems based on exergy

Exergy analysis provides a unified scale for evaluating the quality and quantity of energy, and is suitable and essential for scientifically and rationally guiding the optimization and evaluation of integrated energy systems with intricate multi-component configurations. The present work proposes an exergy analysis model and joint solution framework for integrated energy systems based on exergy, and presents an efficient and accurate solution method. The exergy analysis model is analogous to the energy-based model and possesses a succinct form. This model is then applied to establish an input exergy model defining the exergy of inputs, a destroyed exergy model defining the exergy lost due to the conversions, transmissions, and storages, and a benefit exergy model defining the remaining useful exergy for the loads. The joint solution framework optimizes the system from the basis of exergy conservation, and evaluates the destroyed exergy of each link and the prices of the various exergy products from an economic perspective based on the established exergy analysis model. The complexity of the framework is then reduced by establishing a sequential optimization and evaluation model. The optimization model is solved accurately and efficiently using a stringent cutting plane method to address the problem of relaxation inaccuracy, and piecewise linearization to accommodate the non-convex constraints. Numerical computations on a 97-node system demonstrate the accuracy of the proposed models in exergy-based optimization, destruction, and price evaluation, preventing substantial deviations (e.g., a 23% discrepancy in total destroyed exergy). The adopted cost allocation method based on energy quality reflects fair pricing, rectifying conventional pricing disparities (e.g., a 47.56% underestimation of the electric load using energy-based pricing). Therefore, the accuracy and efficiency of the developed exergy analysis model, solution framework, and solution method are validated.

Comparison of a Hybrid Firefly–Particle Swarm Optimization Algorithm with Six Hybrid Firefly–Differential Evolution Algorithms and an Effective Cost-Saving Allocation Method for Ridesharing Recommendation Systems

The optimization and allocation of transport cost savings among stakeholders are two important issues that influence the satisfaction of information providers, drivers and passengers in ridesharing recommendation systems. For optimization issues, finding optimal solutions for nonconvex constrained discrete ridesharing optimization problems poses a challenge due to computational complexity. For the allocation of transport cost savings issues, the development of an effective method to allocate cost savings in ridesharing recommendation systems is an urgent need to improve the acceptability of ridesharing. The hybridization of different metaheuristic approaches has demonstrated its advantages in tackling the complexity of optimization problems. The principle of the hybridization of metaheuristic approaches is similar to a marriage of two people with the goal of having a happy ending. However, the effectiveness of hybrid metaheuristic algorithms is unknown a priori and depends on the problem to be solved. This is similar to a situation where no one knows whether a marriage will have a happy ending a priori. Whether the hybridization of the Firefly Algorithm (FA) with Particle Swarm Optimization (PSO) or Differential Evolution (DE) can work effectively in solving ridesharing optimization problems needs further study. Motivated by deficiencies in existing studies, this paper focuses on the effectiveness of hybrid metaheuristic algorithms for solving ridesharing problems based on the hybridization of FA with PSO or the hybridization of FA with DE. Another focus of this paper is to propose and study the effectiveness of a new method to allocate ridesharing cost savings to the stakeholders in ridesharing systems. The developed hybrid metaheuristic algorithms and the allocation method have been compared with examples of several application scenarios to illustrate their effectiveness. The results indicate that hybridizing FA with PSO creates a more efficient algorithm, whereas hybridizing FA with DE does not lead to a more efficient algorithm for the ridesharing recommendation problem. An interesting finding of this study is very similar to what happens in the real world: “Not all marriages have happy endings”.

Optimal participation and cost allocation of shared energy storage considering customer directrix load demand response

In recent years, with the increase in the proportion of new energy connected to the grid, the main goal of energy storage on the load side and energy storage users is to maximize the overall interests. Based on the poor utilization ratio and high use cost of energy storage configured on the user side, the controllability of adjustable load and the rationality of energy storage configuration are two key points that need to be considered for social welfare maximization (SWM). Hence, this paper puts forward an implementation method of large-scale demand response (DR) based on the customer directrix load (CDL), in order to give full play to the DR of the load side and improve the utilization rate of shared energy storage (SES). First, the CDL proposed in this paper gives the full-time DR regulation target, which can better guide load shaping and solve the problem of flexible load controllability. Then, an SES configuration model based on SWM is built to further shape the load and improve the utilization rate and economy of energy storage. In addition, in the market with incomplete free competition, a recent market clearing strategy based on Vickery-Clark-groves (VCG) is proposed, which encourages market members to declare true information to achieve the global optimal effect and realize the sustainability of the proposed model. The simulation results show that with the participation of SES, the similarity of users based on CDL has increased by 8.59 % and 0.99 % respectively, and the social welfare has reached 41,297.71 yuan/day. The results also show that the reasonable cost allocation through the VCG mechanism shortens the investment return period of SES by 33.33 %, which promotes the investment enthusiasm of SES.

Research on the stability evolution mechanism and combinatorial optimization decision‐making of multitype heterogeneous energy cooperative operation

AbstractConsidering the cooperative willingness of multiple heterogeneous energy sources to participate in the alliance, the stability of the cooperative operation of each entity (hereinafter referred to as stability) and the supporting mechanism of its optimal combination to realize the high proportion of new energy generation are studied. Through simulating load peak‐cutting and valley‐filling in the power system, the difference between the load value and the base load in the 24 h of the daily load curve is used as the calculation condition for the supply balance of the alliance. Based on the source‐load power balance model, the feasibility of power data normalization is derived and demonstrated. Simultaneously, taking into account the time‐of‐use price cost of each entity, a multiscale operation cost allocation and stability evolution analysis model for the alliance is constructed using the Shapley value and the largest consistent set method. By comparing the willingness of each entity to engage in the alliance, as well as the multiscale operation stability and economic change rule of different alliances, the results demonstrate that: (1) Alliance 1 has the advantage of economic operation. (2) The common stability period of different alliances is influenced by the participation preferences of each entity (wind power, photovoltaic, and thermal power tend to participate in Alliance 1, while hydropower tends to participate in Alliance 2). (3) Alliance internal restructuring can be carried out by utilizing spatial and temporal difference characteristics of different entities’ participation in alliance preferences, thereby achieving alliance stability and efficient operation. This study provides a theoretical basis for making decisions regarding the optimized stable operation of the alliance.

Economy-equity equilibrium based bi-level provincial renewable portfolio standard target allocation: Perspective from China

Renewable portfolio standards (RPS) are policy tools used in many countries to promote the use of renewable energy. However, balancing the equity and costs of RPS target allocations is very difficult. Therefore, this study proposed a bi-level framework to characterize this dilemma, in which the upper-level government, as the RPS target allocator, focuses on policy equity and maximizing global renewable energy utilization, and the lower-level government, as the policy implementer, considers the costs to achieve the RPS target. Only when the two types of decision-makers fully interact can they establish economical and equitable goals for a successful implementation. The bi-level mathematical model uses responsibility, capacity, and equality principles to measure equity and optimize the RPS target allocations. The proposed approach was applied to a Chinese case, from which it was found that the inclusion of hydropower in the RPS targets made equitable allocations more challenging, and equitable RPS target allocations have higher costs. Besides, central governments can determine equity principle weights to encourage greater renewable energy generation.

Addressing the Costs Imbalance Resulting from Third-Party Funded Investment Claims

Third-party funding (TPF) has become a hot topic in investment arbitration, and its significant growth has provoked concerns from policymakers, academics, and states. One of the issues raised most frequently has been its impact on costs and security for costs orders. Growing case law suggests that states will likely be held liable for the funded legal costs of the claimant and may even be held liable for the costs incurred by the claimant to obtain funding. At the other end of the spectrum, states face the risk of being unable to recover their costs as the use of funding facilitates access to financially distressed investors. This article highlights that the current arbitral practice and legal framework have brought about a situation in which funders and claimants are able to transfer the risk associated with funding to states. It also demonstrates that the proposed options to address states’ concerns, namely holding funders liable for adverse costs and requesting security for costs, are unlikely to function as solutions. Thus, this article argues that unless appropriate amendments or reforms are undertaken to address this imbalance, states will be unfairly burdened for the benefit acquired by the claimant and funder. Third-Party Funding, Investment Arbitration, Security for Costs, Allocation of Costs, Funder Liability, Costs of Funding, Recovery of Costs, Reform of ISDS

Cost of Quality and Financial Performance of Small and Medium Enterprises

This study delves into the complex interplay between the cost of quality elements—specifically, prevention, appraisal, and failure costs—and the financial performance of Small and Medium Enterprises (SMEs). By employing empirical analysis based on 246 completed questionnaires from various sectors within Ghana's SME landscape, the research endeavors to illuminate the critical associations between these cost factors and financial outcomes. The Partial Least Structural Equation Model (PLS-SEM) technique was utilized to scrutinize these relationships. The findings reveal a significant positive correlation between prevention and appraisal costs with improved financial performance, while failure costs exhibit a negative association. These outcomes substantiate the vital role of resource allocation and strategic management of quality costs in shaping the financial health of SMEs. The implications extend to both academia and practical business strategies, highlighting the need for a balanced approach in resource allocation and the significance of preventive measures in fostering enhanced financial performance for SMEs. The study underscores the importance of proactive quality management and strategic decision-making in driving the financial success and sustainability of SMEs in today's competitive business environment.

APPLICATION OF ENVIRONMENTAL ACCOUNTING TO HIU PAUS TOURISM IN TOMINI BAY

Research Purposes. This study examines the application of environmental accounting in Hiu Paus Tourism in Tomini Bay. Research Methods. This research is in the realm of qualitative study using a phenomenological approach. Research Results and Findings. The results showed that Hiu Paus Tourism still needs to implement environmental accounting by PSAK 2015 No. 1 concerning the presentation of financial statements, and there has been no special report related to environmental costs. In environmental management, Hiu Paus Tourism has carried out waste management and maintenance of coral reefs internally. However, the allocation of environmental costs is still carried out and has not been maximized. However, Hiu Paus tours in Tomini Bay have followed general rules of interaction for the safety of visitors in special interest tours.

Transboundary water management in Kyrgyzstan: International law aspects

This article explores the intricate dynamics of international water management, focusing on Kyrgyzstan's pivotal role in Central Asia's water resource distribution. It begins by highlighting global water scarcity issues and emphasizes the growing importance of international water law and liability for transboundary harm. Employing a range of scientific methodologies, the study delves into historical contexts, including Soviet-era water management initiatives and subsequent challenges post-dissolution. It elucidates the establishment of river basin organizations and the complexities of inter-state agreements and disagreements. The discussion section offers diverse perspectives on key issues such as equitable resource allocation and infrastructure maintenance costs, drawing from expert opinions and scholarly insights. Recent positive developments in interstate relations, particularly between Kyrgyzstan and Uzbekistan, regarding water resource management agreements are highlighted. In conclusion, the article advocates for bilateral agreements and regional cooperation to address water-related conflicts, proposing the potential creation of a supranational organization akin to the European Coal and Steel Community. Such initiatives aim to ensure equitable and sustainable water resource management while fostering economic cooperation in the region.

Relationship between Strategic Management Practices and Performance of Agro-Veterinary Based Industries: A case Study of Highchem Agro-Veterinary Division

The general aim of this study was to examine the relationship between strategic management decisions and performance in HighChem Agro-veterinary Division. The objectives of the study were to establish the effect of strategic innovation on performance of the Agro-veterinary industry; to investigate the impact of effective cost leadership on the performance of Agro-veterinary based industry; to examine how product differentiation affects the performance of Agro-veterinary based industry; to establish the effects of resource allocation on of the performance of Agro-veterinary based industry. The study has been anchored on three major theories. These theories are the Porter’s framework of competitive advantage; Resource-based theory and blue ocean theory. The study adopted a descriptive cross-sectional analysis. The study’s target population comprised of HighChem Agro-Veterinary Division employees and their distributors. The sample size used was 98 respondents who were selected conveniently. Online questionnaires were used for data collection which had both open and closed ended question. Linear regression was used to establish the relationship between the study variables. The study concluded that strategic resource allocation decisions and cost reduction strategies positively affects the performance of HighChem Agro-Veterinary Division while, strategic innovations and product differentiation negatively affected the performance of HighChem Agro-veterinary Division. Consequently, the study recommended that HighChem Agro-Veterinary Division should continue with its cost reduction strategies as well as its strategic resource allocation decisions while re-looking at its product differentiation and strategic innovation techniques.

Non-optimal and optimal fractional control analysis of measles using real data

This study employs fractional, non-optimal, and optimal control techniques to analyze measles transmission dynamics using real-world data. Thus, we develop a fractional-order compartmental model capturing measles transmission dynamics. We then formulate an optimal control problem to minimize the disease burden while considering constraints such as vaccination resources and intervention costs. The proposed model’s positivity, boundedness, measles reproduction number, and stability are obtained. The sensitivity analysis using the partial rank correlation coefficient is shown for the fractional orders of 0.99 and 0.90. It is noticed that the rate of recruitment into the susceptible population (π), the rate at which individuals in the latent class become asymptomatic (α1), and the transmission rate (β) contribute positively to the spread of the disease, while the rate at which individuals in the asymptomatic class become symptomatic (α2), the vaccination rate for the first measles dose (γ1), and the rate at which individuals in the latent class recover from measles (δ1) contribute significantly to the reduction of measles in the community. Utilizing numerical simulations and sensitivity analyses, we identify optimal control strategies that balance the trade-offs between intervention efficacy, resource allocation, and societal costs. Our findings provide insights into the effectiveness of fractional optimal control strategies in mitigating measles outbreaks and contribute to developing more robust and adaptive disease control policies in real-world scenarios.

Cost Allocation for Inertia and Frequency Response Ancillary Services

Cost Allocation for Inertia and Frequency Response Ancillary Services

CASCINA OREMO: A Renovation of a building for people with disabilities, where we all learn to achieve efficiency together

Cascina Oremo is a group of buildings conceived by the “Fondazione Cassa di Risparmio di Biella” to accommodate associations that focus on childhood disabilities. It is a multifunctional complex converted from an old farmhouse located in Biella. It consists of two different buildings: the multifunctional farmhouse building, created by renovating the existing farmhouse structure, and the pool building, a new building that houses the pool and sports areas. It hosts four different associations, each allocated specific spaces. This case study aims to illustrate the automation and control system choices, particularly highlighting the metering not only for cost allocation in accordance with DLgs 102/14 but also for interfacing with the Building Management System designed to assist the designer in ensuring that the building’s performance adheres to the project specifications over time and improves the overall system efficiency within the Deming cycle perspective. Furthermore, it integrates with Artificial Intelligence and the smart grid. The Building Management System also serves as an enabling platform for informing occupants to achieve a high level of Sustainable and Responsible Investment.

Determinants influencing intention to apply multi-dimensional profitability analysis at commercial banks’ strategy

Multi-dimensional profit analysis (MPA) in management accounting allows banks to analyze their profit from different perspectives, the results of which provide useful information for banks to make decisions (KPMG, 2019). A comprehensive and multi-dimensional view of profits based on products, distribution channels, customers, geography, and bank staff through effective cost allocation models is increasingly important in the world. However, the intention to apply MPA applications depends on various factors, which have not been discussed well in the Vietnamese banking context. The aims of this study include finding out the factors that influence the intention to apply MPA in Vietnamese commercial banks and proposing recommendations to encourage Vietnamese commercial banks to implement. This study combines both qualitative and quantitative research methods, based on interviews of 300 managers of commercial banks to investigate the statistical significance of the determinants affecting intention to apply MPA. The results reveal some most influencing factors, ranging from the human factor to the perception of the leadership of the bank, as well as the guiding factor of the regulator. From the findings, several suggestions are proposed for the intention to apply MPA in the context of Vietnamese commercial banks.

ChatGPT 등 인공지능 모델 출현에 따른 원가관리회계 교육에서의 조화 가능성 탐색

[Purpose] This study aims at providing suggestions and implications on cost accounting education under the circumstances of generative artificial intelligence language models such as ChatGPT, Bing, and Bard.
 [Methodology] First, this study evaluates how well the model can provide solutions for the cost accounting exam questions. Second, this paper modifies prompts in order to get the desired answers from the AI model.
 [Findings] The artificial intelligence model can solve the questions such as explaining the main concepts of cost accounting and developing managerial accounting schemes like BSC. The models also provide the correct answers for simple questions on calculating cost with a simple process. However, there are limits on multi-level cost allocation problems.
 [Implications] This paper introduces examples that ChatGPT can provide answers to cost accounting questions. Based on the initial draft that ChatGPT generated, students can validate or revise their initial draft. In addition, prompt engineering activities can be introduced with cost accounting topics as illustrated in this study.

THE ROLE OF ACTIVITY-BASED COSTING AND TARGET COST IN ACHIEVING COMPETITIVE ADVANTAGE IN SUDANESE INDUSTRIAL COMPANIES

The purpose of the article is to identify the role of trends in cost systems such as activity-based costing systems) ABC (and target cost (TC) to improve competitive advantage for the Sudanese industrial sector. This can help accountants in accuracy when measuring and calculating production and goods. Also, they assist companies in determining the price considering the allowable costs.The practical value of this scientific research lies in three folds. First, the findings will contribute to shedding light on the experience of using some modern cost systems in Giad industrial group companies - in Sudan. Second, they inform officials about the evaluation of these systems and the extent of benefits from them in improving the competitive advantage. Third, the study fills in the gap lack of studies that deal with this topic in the Sudanese setting.The study’s findings indicate the existence of a role for ABC in overhead cost allocation, more accurate product cost, and cost control improvement. This leads to improving advantage competitive in Sudanese industrial companies. Also, it was discovered that the existence of a role for target cost in designing the required product characteristics, and selling price is an essential guide to cost management. This leads to improving advantage competitive in Sudanese industrial companies. The study recommends a need to increase the awareness of managers of different departments of the importance of the information provided by modern cost systems. Also, attention to applying a total quality cost system for continuous improvement and reducing total cost is needed in companies.

ОСНОВНЫЕ НАПРАВЛЕНИЯ МЕЖОТРАСЛЕВОГО СОВЕРШЕНСТВОВАНИЯ ИНСТИТУТА ПРОЦЕССУАЛЬНЫХ ИЗДЕРЖЕК В УГОЛОВНОМ СУДОПРОИЗВОДСТВЕ

The main directions of improving the institution of procedural costs in criminal proceedings, designed to partially compensate for the burden on the federal budget, in terms of cross-sectoral unification for the formation of a unified regulatory framework, are investigated. Solved problem. Despite the close attention of the legislator and the higher courts to the relevant norms of law, their systematic interpretation and application still causes difficulties, overcoming which necessitates an in-depth and interdisciplinary analysis of this legal institution. It is proved that for the correct interpretation and implementation of the rules on procedural costs, the expansion of the practice of using this institution, as well as the minimization of judicial errors, it is necessary to form a unified regulatory framework for regulating legal relations. Research methods. The methods of comparative law, as well as general and special (analysis and synthesis, logical, special legal) are applied. Conclusion. The conclusion is presented that in order to form the normative unity of the institution of procedural costs, it is necessary to legislate the court’s authority to reduce the amount of procedural costs, the deadline for filing an application to the court for reimbursement of costs incurred, to extend the principles of cost allocation for all types of litigation, taking into account the differentiation of compensation and recovery mechanisms, to form uniform criteria for determining the amount for payment of expenses for representative.

Power flow traceable P2P electricity market segmentation and cost allocation

This study explores peer-to-peer (P2P) electricity trading, emphasizing not just the export and consumption, but also the feasible physical supply of electricity and the use of distribution network assets. Building on a transaction-oriented dynamic power flow tracing model, a novel P2P market architecture is proposed. This architecture integrates the electricity market with the power network, considering technical constraints, network losses, and asset usage. The network is segmented into potential markets using second-order cone programming (SOCP), with an optimization problem introduced for loss-allocation. This problem merges network physical analysis and variable outputs from distributed energy resources (DERs). A graph-based P2P electricity trading model is designed to determine optimal transaction cost allocation and maximize benefits for both DERs and consumers. A case study on a modified IEEE 33-node test feeder substantiates the benefits of this market structure, demonstrating increased revenues for DERs and reduced bills for consumers compared to traditional feed-in-tariffs.