Depreciation Costs Research Articles

A Study on 128 Slice MDCT unit in a Tertiary Care Teaching Hospital with Special Emphasis on Work Flow and Break-Even Analysis

Purpose: To study the Cost Analysis of 128 Slice MDCT unit in a tertiary care teaching hospital Materials and methods: The study followed a biphasic design, comprising both retrospective and prospective components. The retrospective phase involved a record-based analysis conducted over a 3-month period, while the prospective phase included record review, observational methods, interviews, and material evaluation relevant to the study, carried out over the course of 1 month. Results: The cost of running the 128 Slice MDCT unit, including manpower, was calculated for a 3-month period, with an average of 28 cases per day. The unit handles a total workload of 54 TR (15 TR + 35 TR + 4 TR). Power is supplied by a 120KVA UPS located in the unit's UPS room. Depreciation for the building, with a lifespan of 100 years, is set at 1% of the capital cost. For an area of 51.2 sqm, the construction cost totals Rs 19,18,208/-, with a depreciation cost of Rs 47,955/- over 3 months. According to the CPWD manual, the annual maintenance cost is Rs 5104/- per sq.m., resulting in a maintenance expense of Rs 65,331/-. Additional costs for electricity, water, and linen over the 3-month period were also factored in. The breakeven point for the unit is estimated to be 744 days (approximately 2 years and 14 days). Conclusion: Getting each patient into and out of the procedure room in a timely manner can add minutes and maybe even hours to the daily schedules, allowing for the accommodation of a greater number of cases. Increasing the number of procedures performed per day or week can add to overall income.

Leverage machine learning to identify key measures in hospital operations management: a retrospective study to explore feasibility and performance of four common algorithms

BackgroundMeasures in operations management are pivotal for monitoring and assessing various aspects of hospital performance. Existing literature highlights the importance of regularly updating key management measures to reflect changing trends and organizational goals. Advancements in machine learning (ML) have presented promising opportunities for enhancing the process of updating operations management measures. However, their specific application and performance remain relatively unexplored. We aimed to investigate the feasibility and effectiveness of using common ML techniques to identify and update key measures in hospital operations management.MethodsHistorical data on 43 measures on financial balance and quality of care under 4 categories were retrieved from the BI system of a regional health system in Central China. The dataset included 17 surgical and 15 non-surgical departments over 48 months. Four common ML techniques, linear models (LM), random forest (RF), partial least squares (PLS), and neural networks (NN), were used to identify the most important measures. Ordinary least square was employed to investigate the impact of the top 10 measures. A ground truth validation compared the ML-identified key measures against the humanly decided strategic measures from annual meeting minutes.ResultsFor financial balancing, inpatient treatment revenue was an important measure in 3/4 years, followed by equipment depreciation costs. The measures identified using the same technique differed between years, though RF and PLS yielded relatively consistent results. For quality of care, none of the ML-identified measures repeated over the years. Those consistently important over four years differed almost entirely among four techniques. On ground truth validation, the 2016–2019 ML-identified measures were among the humanly identified measures, with the exception of equipment depreciation from the 2019 dataset. All the ML-identified measures for quality of care failed to coincide with the humanly decided measures.ConclusionsUsing ML to identify key hospital operational measures is viable but performance of ML techniques vary considerably. RF performs best among the four techniques in identifying key measures in financial balance. None of the ML techniques seem effective for identifying quality of care measures. ML is suggested as a decision support tool to remind and inspire decision-makers in certain aspects of hospital operations management.

Analysis of Determining the Cost of Goods Production Using the Full Costing Method at UD. Aqqib Jaya Collection

This research aims to find out how to calculate production costs and determine the selling price of bags at UD. Aqqib Jaya Collection. The method used is a qualitative approach by conducting interviews, documentation and observation to collect information. The business owner is the main informant in the interview. The research results show that MSMEs calculate production costs manually without taking depreciation costs into account. Production costs are calculated by adding up raw material costs, direct labor costs, and other costs related to bag production. In the process of calculating production costs and determining the selling price of bags, business actors still experience obstacles related to understanding the field of accounting, especially in including depreciation costs.

Economic evaluation of a wind and solar energy hybrid electric sightseeing boat in Laemsak, Krabi Province, Thailand

This research aims to analyze the economic evaluation of using hybrid wind and solar energy with a diesel-engine long-tail boat in the Laemsak tourism community, Krabi province, Thailand. It is a quantitative research study that collects and estimates the costs and expenses of developing hybrid wind turbine and solar panels with diesel-engine long-tail boat, including initial development costs, operational and maintenance costs, and depreciation costs, and also estimates the benefits of using the developed boat, such as revenue from boat services, fuel savings, and carbon offset savings. The economic feasibility is analyzed using the Cost-Benefit Analysis (CBA) method by calculating the Payback Period (PP), Net Present Value (NPV), Benefit Cost Ratio (BCR), and Internal Rate of Return (IRR), as well as analyzing the Sensitivity of some uncertain factors. The analysis of the project over a 10-year period indicates PP of approximately 3-4 years, positive NPV, BCR greater than 1.0, and IRR much higher than the Interest Rate. These figures demonstrate that the project is highly economically viable and suitable for investment.

Analisis Faktor-Faktor yang Mempengaruhi Biaya Transaksi Nasabah pada PT Bank Perkreditan Rakyat Nusuma Gondang Legi Malang

This study aims to analyze the factors that affect customer transaction costs at PT Bank Perkreditan Rakyat Nusuma Gondang Legi, Malang, using qualitative methods through library research using secondary data from sources such as the bank's official website, books, journals, and related articles. The results show that the cost of obtaining third-party funds has a significant positive effect on transaction costs, while bank operational costs do not. Target profit margin and timely payment incentive costs have a significant positive effect, but loan risk costs and asset depreciation are not significant. In conclusion, factors related to bank management and operations, including cost of obtaining funds, operational costs, target profit margin, timely payment incentive costs, and asset depreciation costs, have a significant effect on customer transaction costs. Effective management is needed to minimize transaction costs and improve the efficiency of the banking industry, providing additional insights for further analysis development in supporting the growth of the banking sector

Management Of Pest And Disease Control In Sallots (Allium Ascalonicum L) Farm Activities Sub-District Sungai Ulin Banjarbaru City

This research aims to identify management pest and disease control and cost incurred of shallot (Allium ascalonicum L) farmer in Banjarbaru City, This research activity was carried out began on December-January 2024 with research sampling method is case study, data analysis with management implementation and financial analysis. Result of this research Pest control is very important for farmers to reduce the risk of crop failure due to pests, the purpose of pest and disease control management is not to eliminate pests altogether but to reduce the risk of attacks due to pests and diseases in shallot plants. Farmers need to apply management functions in controlling pests and diseases, namely the functions of planning, organizing, implementing and supervising. The application of management function in Bawang Mas Horti Langgeng Farmer Group has not been fully carried out properly and Average total cost incurred by each farmer is Rp.640,720. The average cost of medicines per one harvest period is 4 months amounting to Rp.277,800. The average depreciation cost of tools amounted to Rp.41,670.

Approaches for hysterectomy and implementation of robot-assisted surgery in benign gynaecological disease: A cost analysis study in a large university hospital

BackgroundAs a minimally invasive technique, robot-assisted hysterectomy (RAH) offers surgical advantages and significant reduction in morbidity compared to open surgery. Despite the increasing use of RAH in benign gynaecology, there is limited data on its cost-effectiveness, especially in a European context. Our goal is to assess the costs of the different hysterectomy approaches, to describe their clinical outcomes, and to evaluate the impact of introduction of RAH on the rates of different types of hysterectomy. MethodsA retrospective single-centre cost-analysis was performed for patients undergoing a hysterectomy for benign indications. Abdominal hysterectomy (AH), vaginal hysterectomy (VH), laparoscopic hysterectomy (LH), laparoscopically assisted vaginal hysterectomy (LAVH) and RAH were included. We considered the costs of operating room and hospital stay for the different hysterectomy techniques using the “Activity Centre–Care program model”. We report on intra- and postoperative complications for the different approaches as well as their cost relationship. ResultsBetween January 2014 and December 2021, 830 patients were operated; 67 underwent VH (8%), 108 LAVH (13%), 351 LH (42%), 148 RAH (18%) and 156 AH (19%).After the implementation and learning curve of a dedicated program for RAH in 2018, AH declined from 27.3% in 2014–2017, to 22.1% in 2018 and 6.9 % in 2019–2021.The reintervention rate was 3–4% for all surgical techniques. Pharmacological interventions and blood transfusions were performed after AH in 28%, and in 17–22% of the other approaches.AH had the highest hospital stay cost with an average of €2236.40. Mean cost of the hospital stay ranged from €1136.77-€1560.66 for minimally invasive techniques.The average total costs for RAH were €6528.10 compared to €4400.95 for AH. ConclusionImplementation of RAH resulted in a substantial decrease of open surgery rate. However, RAH remains the most expensive technique in our cohort, mainly due to high material and depreciation costs. Therefore, RAH should not be considered for every patient, but for those who would otherwise need more invasive surgery, with higher risk of complications. Future prospective studies should focus on the societal costs and patient reported outcomes, in order to do cost-benefit analysis and further evaluate the exact value of RAH in the current healthcare setting.

A new Fermatean fuzzy multi‐objective indefinite quadratic transportation problem with an application to sustainable transportation

AbstractIn this work, a Fermatean fuzzy (FF) multi‐objective indefinite quadratic transportation problem (TP) is introduced. Due to some unavoidable reasons, real‐life transportation parameters such as supply, demand and costs are indeterminate in nature and cannot be expressed in crisp terms. We represent these parameters using FF numbers, an extension of fuzzy numbers, which are capable of representing indeterminacy efficiently. A multi‐objective indefinite quadratic TP where each objective is a product of two linear factors (cost functions) is considered. Defuzzification of FF numbers is accomplished by the introduction of ‐cut for the first time. The obtained crisp TP is solved using the intuitionistic fuzzy programming approach and FF programming approach to arrive at a compromise solution. To substantiate the work, solution methodology based on defuzzification using the ranking function is also deliberated. The applicability of the model is demonstrated through a sustainable TP, which simultaneously minimizes transportation cost with depreciation cost and packaging cost with wastage cost. The resulting value of the objective functions and the aspiration levels are compared to depict the efficacy of the proposed method over the ranking function method. The concluding section summarizes the work, and future avenues along with some limitations of the work are also specified.

THE FINANCIAL IMPACT OF CARBON EMISSIONS ON POWER UTILITIES UNDER CLIMATE SCENARIOS

Power utilities, especially those that generate electricity by burning fossil fuels, produce significant amounts of carbon emissions. Mitigation of [Formula: see text]-equivalent ([Formula: see text]) emissions can be achieved by replacing power plants with renewable power installations and by adopting carbon-sequestration technologies. Physical upgrades are expensive, but carbon taxes, or the purchase of certificates and allowances on a voluntary carbon market, can be costly, too. Carbon costs may increasingly become a threatening liability for power utilities, eating into profits and undermining the financial viability of emission-intensive electricity generation. Thus, we consider an asset-and-liability, structural firm model to investigate the creditworthiness of a generic power utility. The utility’s assets dynamics are driven by the financial returns generated from the sold electricity for a set tariff which is modeled by a simple stochastic process. The liabilities not only depend on fuel, running, and depreciation costs, but also on the costs of [Formula: see text] emissions. As a case study, we consider Eskom, the South African power utility. We show the evolution of Eskom’s default probability under various fuel mix plans and technologies (as per SA’s Integrated Resources Plan (IRP) 2019), and under the Network for Greening the Financial System (NGFS) carbon price scenarios. The obtained results and insights present a trying path ahead, especially for carbon-intensive power utilities.

Impact of maximized utility benefit based on customer willingness for economic operation of a grid connected microgrid system

Optimal scheduling of distributed energy resources (DERs) to obtain a minimized generation cost of a low voltage (LV) microgrid (MG) system has always gravitated the power system optimization researchers. This paper proposes a dual level optimization framework which emphasizes on maximizing the DISCOM profit in the first level and later minimizes the generation cost of the MG system. The MG system considered for the study consists of renewable energy sources, fossil fueled generators, micro turbine and fuel cell and the cost components involve depreciation cost, fuel cost, penalized emission cost and operation and maintenance (O&M) cost. An incentive based demand response (IBDR) policy is implemented which utilizes customer’s willingness to curtail their load demands and offers incentives for the same. When the DISCOMs share of profit is maximized using IBDR policy in level one, the modified load demand of the MG system obtained by deducting the curtailed load from the forecasted load is considered to minimize the generation cost of the MG system in the second level. A recently developed swift and facile Arithmetic optimization algorithm (AOA) is used as optimization tool for the study. The maximum DISCOM benefit was found to be 211▪ when the customers curtailed 105 kWh energy as per their willingness. Literatures reported the minimum power generation cost of the MG system as 880▪, 871▪ and 807▪ for base load, load shifting based demand side management (DSM) and customer incentive-based DR policies respectively. The proposed IBDR policy outperformed the reported literatures with a minimal generation cost of 768▪. Measures of central tendencies also corroborate to the robustness and efficiency of AOA.

A Case Study on Economic Analysis of Sea Cage Farms in the Black Sea, Türkiye

The main aim of this research is to understand the value chains of enterprises engaged in aquaculture in sea cages in the Black Sea region of Türkiye, to determine production costs and to make a general analysis of the aquaculture sector. Random sampling method was used to ensure that farmers were equally represented in the survey. Data for the survey were randomly selected from 16 separate farms spread throughout 4 different marine cage locations. Furthermore, fish traders and sector stakeholders were interviewed. The businesses examined within the scope of the study are divided into 3 groups: small (250 -500 tons/year), medium (501-999 tons/year) and large (>1000 tons/year), according to their capacities. The most important expense items of enterprises consist of variable costs. Among the variable costs, the purchase of fry fish, feed purchase, and labor costs constitute the most important expenditure items. Among the fixed costs, the most important expense is depreciation costs. The unit cost of one kg of fish varies between 2.7 and 3.0 euros. Considering that the trout (Oncorhynchus mykiss) and seabass (Dicentrarchus labrax) in the Black Sea are at the level of 3.5 Euro, the profit rate of the enterprises is between these levels. Recently, since trout from the Black Sea has been exported to the Far East Country (particularly Japan), its price has also increased. In 2018, the average retail price (including VAT) and medium selling price of seabass and trout were at a level of 5.24 and 5.34 Euros respectively. Despite all these positive developments, climate change continues to pose a threat in terms of disease outbreak and marketing problems.

Effects of input intensification and cost efficiency on the productivity of irrigated tomato farmers in Kaduna State, Nigeria

: A ergonomics a diverse range of production-limiting variables ranging from biophysical to agronomic restrictions, as well as socioeconomic and institutional barriers constrained tomato production. It is pertinent to note that Adoption of contemporary agricultural methods is required for optimal productivity under such limits. This study aims to analyze the effect of input intensification and cost efficiency on the productivity of irrigated tomato farmers in Kaduna state, Nigeria. The study used a cross sectional data of 268 irrigated tomato farmers for 2021 cropping season. Descriptive statistics, net farm income, Ordinary Least Square (OLS) regression, Tobit regression model and stochastic frontier cost function were used to analyze the data. The result established that with the net farm income of ₦401,331 ($994.43USD) and return on investment (1.91), tomato production is profitable. The result of OLS regression showed that normalized input intensification (-0.226) is statistically significant at 1% level of probability and is negatively inelastic. This revealed that the input intensification been adopted as a complete package in the study area had negative influence on productivity of tomato. The result of the Tobit model regression showed that the intensity of input use was significantly influenced by the coefficients of age of household head (-0.079), number of extension contact (0.661), farm size (11.257), and distance to input market (0.262). The result of the estimated stochastic frontier cost function showed that costs of labour (0.03), fertilizer (0.35), seed (0.08), agrochemicals (0.06), annual depreciation (0.36) and transportation (0.07) were statistically significant. The inefficiency variables that influenced the cost of the tomato farmers include farm size (0.47), educational status (0.22), access to credit (0.59) and distance to input market (-0.02). The study established that input intensification package adopted by tomato farmers requires modification to enhance tomato productivity in Kaduna state, Nigeria. There is urgent need for training of farmers by extension agent particularly on input intensification, adoption of modern innovations and technologies that could enhance increase output and income.

Business Analysis of Black Ear Mushroom (Auricularia polytrhica (Mont.) Sacc.) in Berjo Village, Ngargoyoso District, Karanganyar Regency

Abstract Black ear mushroom (Auricularia polytricha (Mont.) Sacc.) are edible mushroom that has been widely processed into food and medicine. Thus, due to its high demand, the black ear mushroom has been widely cultivated. The aim of the present study was to determine the feasibility of mushroom cultivation businesses in Berjo Village, Ngargoyoso District, Karanganyar Regency, Central Java. An interview was conducted to three black ear mushroom cultivation business owners. Business performance analysis was carried out. Furthermore, revenue analysis, business efficiency, benefit-cost (B/C) ratio, break-even point (BEP), payback period, and depreciation cost were determined. The average area of mushroom house was 776 m2 with capacity of 18,000 baglogs. Business owners managed their business in the traditional way. For example, watering and pest control was conducted manually. The average revenue of black ear mushroom cultivation was Rp49,555,667/period. In addition, the business efficiency, B/C ratio, BEP unit and price were 1.93, 0.93, 4644 kg, and Rp5,924/kg, respectively. Meanwhile, the payback period and depreciation costs were 0.69 years and Rp6,357,000. Therefore, based on the results obtained in the present study, black ear mushrooms were feasible to be developed into a business.

Depreciation Calculation Using the Straight Line Method is appropriate Taxation Law

The Income Tax Law in Indonesia regulates that costs incurred to acquire tangible assets, which have a useful life of more than one year, can be deducted from gross income through a depreciation mechanism. There are two (1) methods for depreciation of tangible assets referred to in the tax law. Straight-line method, (2). Declining balance method (declining balance method). The aim of this research is to find out (1) how to calculate depreciation based on tax regulations (2) how to calculate depreciation using the straight line method based on tax regulations. In this research the author used descriptive qualitative methods and literature study. Fixed assets (Assets) other than buildings, can be depreciated using the straight-line or declining balance method. Meanwhile, fixed assets (property) are in the form of buildings, depreciation can only be done using the straight line method. The research results show that the provisions for calculating depreciation of tangible assets made by companies need to be reconciled fiscally. Based on the Depreciation Cost Reconciliation calculation, the depreciation calculation uses the straight line method, there is a difference between Commercial calculations and Fiscal calculations in accordance with tax provisions.

Research on Dynamic Reactive Power Cost Optimization in Power Systems with DFIG Wind Farms

As the power market system gradually perfects, the increasingly fierce competition not only drives industry development but also brings new challenges. Reactive power optimization is crucial for maintaining stable power grid operation and improving energy efficiency. However, the implementation of plant–grid separation policies has kept optimization costs high, affecting the profit distribution between power generation companies and grid companies. Therefore, researching how to effectively reduce reactive power optimization costs, both technically and strategically, is not only vital for the economic operation of the power system but also key to balancing interests among all parties and promoting the healthy development of the power market. Initially, the study analyzes and compares the characteristic curves of synchronous generators and DFIGs, establishes a reactive power pricing model for generators, and considering the randomness and volatility of wind energy, establishes a DFIG reactive power pricing model. The objective functions aimed to minimize the cost of reactive power purchased by generators, the price of active power network losses, the total deviation of node voltages, and the depreciation costs of discrete variable actions, thereby establishing a dynamic reactive power optimization model for power systems including doubly-fed wind farms. By introducing Logistic chaotic mapping, the CSA is improved by using the highly stochastic characteristics of chaotic systems, which is known as the Chaotic Cuckooing Algorithm. Meanwhile, the basic cuckoo search algorithm was improved in terms of adaptive adjustment strategies and global convergence guidance strategies, resulting in an enhanced cuckoo search algorithm to solve the established dynamic reactive power optimization model, improving global search capability and convergence speed. Finally, using the IEEE 30-bus system as an example and applying the improved chaotic cuckoo search algorithm for solution, simulation results show that the proposed reactive power optimization model and method can reduce reactive power costs and the number of discrete device actions, demonstrating effectiveness and adaptability. When the improved chaotic cuckoo algorithm is applied to optimize the objective function, the optimization result is better than 7.26% compared to the standard cuckoo search algorithm, and it is also improved compared to both the PSO algorithm and the GWO algorithm.

Analisis Kelayakan Investasi Mesin Printing Percetakan Offset untuk Meningkatkan Kapasitas Hasil Output pada PT. XYZ

The aim of this research is to find out whether purchasing an offset printing machine is feasible or not. In problems One way to find out how much money an investment will generate for a company is to carry out financial analysis. The calculations used include: finding the Net Present Value (NPV), Internal Rate of Return (IRR), Payback Period (PP), and OEE (Overall Equipment Effectiveness). This research was conducted at PT. XYZ, starting from February to July 2024. Field studies, interviews and data collection were carried out to analyze the feasibility of investing in an offset printing machine. Quantitative and qualitative analysis, such as OEE, Depreciation, NPV, IRR, and PP. The results demonstrate a worthy investment with a comprehensive picture of engine performance. The conclusion provides a clear view of the feasibility of the investment and directions for future business development. The analysis results show that the offset printing machine at PT. XYZ has an OEE below 85%, indicating that its efficiency is less than optimal. This suggests the need to replace machines with new ones to increase production effectiveness. In addition, the depreciation calculation shows an estimated depreciation cost of IDR 1,080,000,000 per year, which must be considered in long-term financial planning. However, the NPV results show that the investment is feasible with a value of IDR 227,607,149

ANALISIS PERHITUNGAN HARGA POKOK PRODUKSI MENGGUNAKAN METODE FULL COSTING DALAM PENENTUAN HARGA JUAL PADA PEMUDA MULIA COMPANY DI RANTAU PULUNG

The purpose of this study was to determine the cost of production of Pemuda Mulia Company in obtaining greater profits. This type of research is quantitative research. Data is collected by viewing or analyzing documents made by Pemuda Mulia Company. This study is to analyze the determination of the selling price at Pemuda Mulia Company by using the full costing method. Based on the calculation of the cost of production using the full costing method, it is higher than the calculation according to the Pemuda Mulia Company. The total cost of production using the full costing method of Balado cassava chips is Rp. 4.776.945 while with the Pemuda Mulia Company method, Rp. 3.948.733. Produce a calculation difference of Rp. 828,212. The factor that causes the difference is due to the calculation that uses the full costing method to calculate all production costs compared to the Pemuda Mulia Company method not to calculate the depreciation cost of assets

Analisis Perhitungan Harga Pokok Produksi Roti dengan Menggunakan Metode Full Costing pada UMKM San Roti

In Indonesia, many companies or MSMEs do not use proper financial records, especially in calculating the cost of production. Even though this calculation is really needed so that there are no errors in calculating the cost of production. The method used in this research is the Full Costing method because this method is required to include all costs incurred in the production process, including variable overhead costs and fixed overhead. It is from this background that this research was conducted with the title ""Analysis of the Calculation of the Cost of Production of Bread Using the Full Costing Method in SAN Roti MSMEs" Lumajang. This research uses a descriptive qualitative approach where the aim is to explain systematically the research focus which includes calculating the cost of production using the full costing method. The object of this research is a bakery. Data was collected by means of observation, interviews and documentation. The research results show that calculations using the full costing method produce lower costs than calculations according to San Roti. This is because in the calculations made by UMKM San Roti there are costs that are not included in the calculation, namely asset depreciation costs. Meanwhile, in calculations using the full costing method, asset depreciation costs are calculated and included in the calculation, resulting in different production costs.

Analisis anggaran operasional sebagai alat pengendalian keuangan pada Perusahaan Daerah Air Minum (PDAM) Kabupaten Banggai Kepulauan

Operational budget serves as a tool for companies to achieve profit or income objectives. Financial control remains a critical concern for both profit-oriented and non-profit organizations. This research aims to analyze and comprehend the realization of operational budgets as a financial control instrument within the context of the Regional Drinking Water Company (PDAM) in Banggai Kepulauan Regency. The data analysis method employed is qualitative descriptive analysis, utilizing data collection techniques including observation, interviews, and documentation. The study delves into the comparison between operational budgets and the actual operational costs realized by PDAM Banggai Kepulauan Regency from 2019 to 2021. Across this period, fluctuations are observed in the percentages of operational budgets that have been realized. In 2019, the actual cost realization reaches 110% of the budget with a 10% variance. Similarly, in 2020, the actual cost realization amounts to 116% of the budget with a 16% variance, and in 2021, the actual cost realization reaches 121% of the budget with a 21% variance. The analysis findings highlight that the most significant cost component is transmission and distribution expenses, consistently exhibiting a high percentage of realization, averaging 130% of the budget. The primary cause of this variance is attributed to the unallocated depreciation costs for transmission and distribution installations, which were absent from the operational plan. Throughout the 2019-2021 period, PDAM Banggai Kepulauan experienced incongruities between budgeted and realized costs, particularly concerning transmission and distribution expenses, resulting in adverse financial impacts.

Analysis of barriers related to the costs incident about the cargo transportation by cabotage

Cabotage in Brazil, despite offering cost reductions for the transportation of large cargo quantities, has been underutilized. The country boasts an extensive coastline and a demographic distribution favorable to the use of coastal shipping as a means of cargo transportation. The research aimed to identify the main barriers related to costs affecting coastal shipping in Brazil. The methodology relied on bibliographic and documentary research, encompassing books, journals, official documents, reports, as well as government websites. Five barriers were identified: Barriers related to fleet depreciation and renewal costs; Operational cost barriers; Capacity-related costs of vessels; Initial kilometer cost barriers; and Intermodality cost barriers. The conducted study could contribute to enhancing decision-making regarding cargo transportation in the country, while also encouraging investment decisions and promoting coastal shipping.