Standard Cost Accounting Research Articles

Operating Manifold Services in Hospitals: A costly affair?

Manifold services form an important cost centre in hospitals. Most public sector hospitals do not have standard cost accounting system and therefore budget allocation is often difficult for support services such as the manifold. The study was conducted in a 1045 bedded tertiary care hospital in New Delhi, India with the objective of identifying the cost incurred in delivery of manifold services. This traditional costing exercise was conducted from 01 July to 30 Sept 2010 and included classification of costs, identification of the cost centres in the hospital, cost allocation and apportioning. Direct and indirect costs as well as capital and operational costs were calculated. The process of manifold services from delivery to the operational aspects was studied. Tender documents and supply orders were perused to arrive at expenditure on manifold gas pipeline system, equipment & accessories. Total annual cost of manifold services at the hospital was calculated to be $ 333,676 and per day cost was calculated to be $ 941 .Annual cost per manifold terminal unit was $ 207.3. The daily cost of manifold system was calculated to be $ 0.56. The annual and daily cost per bed was deduced to be $ 320 and $ 0.87 respectively. While manifold is a vital support service, the fact remains that it is cost intensive and underutilized and often poorly planned in terms of cost effectiveness. The focus on technology in manifold services needs to be sustained.

50 Years of "Cost Accounting Standards"

50 Years of "Cost Accounting Standards"

Cost Accounting Standards In Higher Education: Impact Of Required Changes

Beginning in January of 1995, certain institutions of higher education are required to comply with four Cost Accounting Standards and complete a disclosure statement.  This study outlines these changes in cost accounting procedures and provides descriptive comments gathered through a survey of seventy universities with regards to these changes.  Results indicate that complying with the revised rules affords universities the opportunity to review their costing practices and better train employees in costing procedures.  However, the process has been costly in terms of both time and cash expenditures.

Analysing the impact of the implementation of lean manufacturing strategies on profitability

Under standard cost accounting systems, reductions in inventories lead to falling reported profits. Rapid reductions in inventories intensify the impact to the bottom line. When a company embarks on an improvement programme such as lean manufacturing, a likely result will be an initial drop in reported profits due to the leaning out of inventories. This paper examines the impact of the adoption of such strategies on the key external financial performance measure of net profit as reported by the GAAP and SEC approved financial accounting methods and others. ANOVA analysis of data generated using a simulated manufacturing environment that includes a discrete event model of a manufacturing operation and a Microsoft Excel-based ERP system are discussed. The paper analyses both the magnitude of the reduction in reported profits and the span of reporting periods affected under three inventory reduction scenarios. This research was not concerned with finding justification for lean manufacturing strategies. Rather, it evaluates the inadequacies of standard financial reporting methods to accurately reflect operational improvements through the early stages of a lean programme.

Discussion in nursing service and charge

Objective To discuss nursing service and charge in order to establish standard and perfect nursing cost accounting system. Methods Nursing charge was described through analyzing the nursing technology during treatment of long-term hospitalization patients and no charge of disposable items. Results Nursing work was nearly a no-reward technological service, the proportion and the standard of nursing charge was low, the charge of nursing items was incomplete, labor cost was neglected and nursing value could not be really embodied. Conclusions Nursing managers should strengthen the nursing cost management in order to establish perfect and standard nursing cost accounting system. Key words: Nursing charge; Nursing service; Nursing cost

Outsourcing decision under Utopian environment

PurposeThe aim of this paper is to develop and demonstrate an outsourcing decision model in which constraint resource prevents the throughput of the organization.Design/methodology/approachAn integrated model is proposed by incorporating the weighted product model (WPM) of AHP in estimating the priority of each product in a multi‐product constraint resource environment. A numerical example is presented to demonstrate the effectiveness of this model. The outsourcing decision model compares four alternatives: Standard cost accounting, standard theory‐of‐constraints (TOC), LP analysis and an original solution.FindingsThe numerical results show that the proposed model is superior and more realistically optimizes resource allocation and measures the performance of the model.Research limitations/implicationsThis research is limited to the production processes that do not have multiple constraints.Practical implicationsThis research is applicable to the companies which produce multi‐products in a situation in which market demand exceed the company's production capacity.Originality/valueThis is the first time that the WPM of AHP/TOC has been used to maximize the product throughput. Instead of calculating $return per constraint minute, it decides the priority of product that maximizes the product throughput in the constraint resource environment. It makes a significant contribution to the manufacturing organization where one can compare the financial performance of the organization by selecting the right decision model.

An improved theory of constraints

PurposeThe primary aim in this paper is to develop and demonstrate a theory of constraints (TOC) model in which constraint resource prevents the throughput of the organization.Design/methodology/approachIn this paper, the authors propose an integrated model by combining Laplace criterion and TOC into a single evaluation model in a multiproduct constraint resource environment. A case study is illustrated to demonstrate the effectiveness of this model. The outsourcing decision model compares three alternatives: standard cost accounting, standard theory‐of‐constraints, and our own solution.FindingsThe numerical results show that the new approach is superior to Standard cost accounting and Theory of Constraints and presents a more realistic state of optimum allocation of resources and measures the performance of the model.Research limitations/implicationsThis research is limited to the production processes that do not have multiple constraints.Originality/valueThis is the first time that the integrated model comprising of Laplace‐TOC model has been used to maximize the product throughput. Instead of calculating $return per constraint minute, this method decides the priority of product that maximizes the product throughput in the constraint resource environment. It makes a significant contribution to the manufacturing Organization where one can compare the financial performance of the Organization by selecting the right decision model.

A holistic approach for production outsourcing

PurposeThe purpose of this paper is to develop and demonstrate an outsourcing model in which constraint resource prevents the throughput of the organization.Design/methodology/approachThe paper proposes an integrated model by combining the Hurwicz criterion, the theory‐of‐constraints (TOC) and linear programming (LP) into a single evaluation model in a multi‐product constraint resource environment. A case study is presented to demonstrate the effectiveness of this model. The decision model compares four alternatives: standard cost accounting, standard TOC, LP analysis, and our own solution, which is an approach that combines TOC, LP, and the Hurwicz criterion.FindingsThe numerical results show that this model is superior and more realistically optimizes resource allocation and measures the performance of the model.Research limitations/implicationsThis research is limited to the production processes that do not have multiple constraints.Originality/valueThis is the first time that the integrated model comprising of Hurwicz‐TOC‐LP model has been used to maximize the product throughput. Instead of calculating $ return per constraint minute, this method decides the priority of product and resource center that maximizes the product throughput in the constraint resource environment. It makes a significant contribution to the manufacturing organization where one can compare the financial performance of the organization by selecting the right decision model.

Improved TOC for outsourcing decision

The aim of this paper is to develop and demonstrate a theory of constraints (TOC) model that utilizes TOPSIS method in estimating the priority of each product in a multiproduct constraint resource environment. The decision model compares four alternatives: Standard cost accounting, Standard Theory-Of-Constraints (TOC), LP analysis and our own solution. The numerical results show that the proposed approach is superior to standard cost accounting and theory of constraints and presents a more realistic state of optimum allocation of resources and measures the performance of the model. This research is limited to the production process where there is no multiple constraints.

History of Cost Accounting Standards in Japan (1)

History of Cost Accounting Standards in Japan (1)

Historical Review of the GENKAKEISAN-KIJUN (The Cost Accounting Standards in Japan)

Historical Review of the GENKAKEISAN-KIJUN (The Cost Accounting Standards in Japan)

The Theory of Constraints and the Make‐or‐Buy Decision: An Update and Review

SUMMARYThe make‐or‐buy decision has traditionally been made using standard cost accounting methods. In this Journal, Gardiner and Blackstone (1991) made a strong case for incorporating the bottleneck capacity into the decision. However, their method did not guarantee the best solution for the more complicated make‐or‐buy problem. Additionally, their approach in some cases allowed organizations to forego opportunities for profit improvement. Since the publication of the Gardiner and Blackstone research, spreadsheets with in‐built Linear Programming (LP) based optimizers allow for quick “what‐if” analyses that encourage efforts toward optimal solutions for complicated problems. This article is a review and update of the Gardiner and Blackstone methodology based on spreadsheet LP that provides enhanced solutions in complex environments with multiple products and bottleneck situations. Specific managerial implications are offered.

A Viewpoint of New "Cost Accounting Standards"

A Viewpoint of New "Cost Accounting Standards"

The Role of Cost Accounting Standards on Public Activities

The Role of Cost Accounting Standards on Public Activities

A Management Analysis of Hydroponic Productions by Standard Cost Accounting

A Management Analysis of Hydroponic Productions by Standard Cost Accounting

Qualitätsmanagement: Interne Leitlinien und Patientenpfade

The construction and implementation of "Practice Guidelines" was one of the most important developments in American medicine of the last 15 years. There is ongoing controversy about the effectiveness of these guidelines to get introduced into practice. It has been proved, however, that guidelines developed by care organizations themselves, will show a higher effectiveness and acceptance and will achieve more positive results (Internal Guidelines, "Locally Owned" Standards). "Mipp": Internal Guidelines are also the starting point for the patient pathways of the model of integrated patient pathways "mipp", developed at the Kantonsspital Aarau in the last 7 years. The model is presented with its main features: Construction and Implementation of Pathways, Path-Controlling, Path-Benchmarking and Path-Visualization. "Mipp" Pathways share with Clinical Pathways the interdisciplinary perspectives for an efficient quality management. The description of processes is combined with an integrated calculation of costs, which is the basis of standard cost accounting and even activity based-costing. In the field of upcoming prospective payment systems (PPS) like ARDRG, APDRG etc. it is of utmost importance for care organizations to have a clear view regarding the treatment processes and the possibilities of their improvement.

Comparative Study of Logistics Cost Accounting Standards between Korea and Japan

Comparative Study of Logistics Cost Accounting Standards between Korea and Japan

Production outsourcing: A linear programming model for the Theory-Of-Constraints

This paper presents an analysis of the outsourcing problem. Pertinent variables are identified and the relationships between them are defined. We formulate the outsourcing problem as a Linear-Programming (LP) problem and identify an analytical solution. We proceed with an example examining three decision models: standard cost accounting, standard Theory-Of-Constraints (TOC) and our own solution. The model enables managers to determine which products to manufacture and which to outsource. The solution of the LP formulation enables managers to apply the model by computing an operational ratio, without having to solve a linear programming problem. The final model is simpler to apply and requires the computation of fewer variables than other prevalent models.

Clarification of the "Cost Accounting Standards"

Clarification of the "Cost Accounting Standards"

パネルディスカッション: 現行「原価計算基準」の再検討

パネルディスカッション: 現行「原価計算基準」の再検討