This document summarizes a lecture on activity-based cost management. It discusses how activity-based costing (ABC) can provide insights into indirect expenses by assigning costs to activities and tracing them to final cost objects. ABC expresses activities using verbs and links expenses to outputs. It also discusses how ABC can identify value-adding versus non-value-adding activities and be used for both local process improvement and enterprise-wide strategic decision-making. More advanced ABC systems integrate with other decision support systems for automated data collection and reporting.
Ss 05 Cost engineering management training- nov 2017 - moustafa part ii ch 10Moustafa Ismail Abu Dief
Cost Management training course, Certified cost professional certification preparation course.
Cost Engineering- Commercial management- tendering and bedding.Process product manufacturing- skills and knowledge of cost engineering
Ss 05 Cost engineering management training- nov 2017 - moustafa part ii ch 10Moustafa Ismail Abu Dief
Cost Management training course, Certified cost professional certification preparation course.
Cost Engineering- Commercial management- tendering and bedding.Process product manufacturing- skills and knowledge of cost engineering
Cost management is the process of planning and controlling the budget of a business. Cost management is a form of management accounting that allows a business to predict impending expenditures to help reduce the chance of going over budget.
Behavioral Aspects of IT Employees towards Problems and Prospects of Activity...Dr. Amarjeet Singh
Activity Based Costing (ABC) is a new variant in cost
management practices emerged in 1980’s, which caters to the
needs of organizations in effective control and monitoring cost
and better management of profitability. The success of ABC
duly depends on articulation of implementation of ABC and
the outcome of Activity Based Cost and Management
(ABCM). Though employees experience a positive outcome, it
is beyond doubt that they can support the ABC rather
resisting the same. The main objective of this paper is to
examine the perception of IT companies’ employees’ towards
implementation of Activity-Based Costing(ABC). A normative
list of benefits concerning the ability of ABC systems to
redirect the behavior of individuals was abstracted from the
interviews opinion and compared to the perceived benefits
gathered from interviews with firm employees. This will
permit IT Companies and provides relevant information that
will enable them to make better decisions with regard to
measure the successful implementation of ABC in IT
Companies.
ABC Manufacturing Company
Rhoda Shugars
SCM210-1404B-04: Introduction to Logistics/Supply Chain Management
Chester Legenza
December 16, 2014
Introduction:
Assembling firms confront always expanding rivalry in today's worldwide commercial center. Organizations must respond rapidly and fabricate superb, minimal effort items to be effective in this new environment. To settle on fitting choices, senior supervisors must have exact and up-dated costing data. Customary costing frameworks focused around volume-based designation of overhead have lost pertinence in an assembling environment that has seen a sharp increment in overhead and a resulting decrease in immediate work. These customary costing frameworks have a tendency to contort item expenses and lead to poor key choice making (Johnson and Kaplan; Johnson).one inventive costing strategy intended to manage the inadequacies of conventional costing frameworks is Activity Based Costing (ABC). ABC, spearheaded by Robin Cooper, Robert Kaplan, and H. Thomas Johnson (Cooper, Cooper and Kaplan, Johnson), is a costing procedure used to follow overhead expenses specifically to cost objects, i.e., items, methods, administrations, or clients and help administrators to settle on the right choices in regards to item blend and focused systems. As indicated by Turney, ABC can drastically change how chiefs focus the mix of their product offering, value their items, recognize the area for sourcing parts, and survey new engineering (Turney). Despite the fact that the writing has reported, Various executions of ABC in vast assembling firms, there has been restricted bookkeeping of ABC being grasped by little and medium assembling firms (Needy and Bidanda; Bharara and Lee). Upon closer examination, there seems, by all accounts, to be a few components avoiding little and medium assembling firms from executing an ABC costing framework including absence of information, specialized assets, budgetary assets, and satisfactory computerization. Maybe the fundamental impediment, absence of information, focuses on the issue of gathering and handling the required information in the right arrangement at a sensible expense. Since the data required for ABC is exorbitant and particularly little assembling firm sari commonly compelled fiscally, these organizations need to be extremely specific in the kind of information and examination that they use to focus overhead expenses. In addition, little organizations work exceptionally, a condition alluded to as asset destitution that obliges particular expense administration methodologies (Welsh and White). Accordingly, a philosophy that will empower a little organization to acquire precise item cost data yet minimize monetary exertion is required.
Decision-Making Criteria:
Cooper depicts two stages in the ABC model (Cooper,; Cooper,). In the first stage, expenses are allocated to cost pools inside a movement focus, taking into account an expense driver. There is no proportiona.
Cost management is the process of planning and controlling the budget of a business. Cost management is a form of management accounting that allows a business to predict impending expenditures to help reduce the chance of going over budget.
Behavioral Aspects of IT Employees towards Problems and Prospects of Activity...Dr. Amarjeet Singh
Activity Based Costing (ABC) is a new variant in cost
management practices emerged in 1980’s, which caters to the
needs of organizations in effective control and monitoring cost
and better management of profitability. The success of ABC
duly depends on articulation of implementation of ABC and
the outcome of Activity Based Cost and Management
(ABCM). Though employees experience a positive outcome, it
is beyond doubt that they can support the ABC rather
resisting the same. The main objective of this paper is to
examine the perception of IT companies’ employees’ towards
implementation of Activity-Based Costing(ABC). A normative
list of benefits concerning the ability of ABC systems to
redirect the behavior of individuals was abstracted from the
interviews opinion and compared to the perceived benefits
gathered from interviews with firm employees. This will
permit IT Companies and provides relevant information that
will enable them to make better decisions with regard to
measure the successful implementation of ABC in IT
Companies.
ABC Manufacturing Company
Rhoda Shugars
SCM210-1404B-04: Introduction to Logistics/Supply Chain Management
Chester Legenza
December 16, 2014
Introduction:
Assembling firms confront always expanding rivalry in today's worldwide commercial center. Organizations must respond rapidly and fabricate superb, minimal effort items to be effective in this new environment. To settle on fitting choices, senior supervisors must have exact and up-dated costing data. Customary costing frameworks focused around volume-based designation of overhead have lost pertinence in an assembling environment that has seen a sharp increment in overhead and a resulting decrease in immediate work. These customary costing frameworks have a tendency to contort item expenses and lead to poor key choice making (Johnson and Kaplan; Johnson).one inventive costing strategy intended to manage the inadequacies of conventional costing frameworks is Activity Based Costing (ABC). ABC, spearheaded by Robin Cooper, Robert Kaplan, and H. Thomas Johnson (Cooper, Cooper and Kaplan, Johnson), is a costing procedure used to follow overhead expenses specifically to cost objects, i.e., items, methods, administrations, or clients and help administrators to settle on the right choices in regards to item blend and focused systems. As indicated by Turney, ABC can drastically change how chiefs focus the mix of their product offering, value their items, recognize the area for sourcing parts, and survey new engineering (Turney). Despite the fact that the writing has reported, Various executions of ABC in vast assembling firms, there has been restricted bookkeeping of ABC being grasped by little and medium assembling firms (Needy and Bidanda; Bharara and Lee). Upon closer examination, there seems, by all accounts, to be a few components avoiding little and medium assembling firms from executing an ABC costing framework including absence of information, specialized assets, budgetary assets, and satisfactory computerization. Maybe the fundamental impediment, absence of information, focuses on the issue of gathering and handling the required information in the right arrangement at a sensible expense. Since the data required for ABC is exorbitant and particularly little assembling firm sari commonly compelled fiscally, these organizations need to be extremely specific in the kind of information and examination that they use to focus overhead expenses. In addition, little organizations work exceptionally, a condition alluded to as asset destitution that obliges particular expense administration methodologies (Welsh and White). Accordingly, a philosophy that will empower a little organization to acquire precise item cost data yet minimize monetary exertion is required.
Decision-Making Criteria:
Cooper depicts two stages in the ABC model (Cooper,; Cooper,). In the first stage, expenses are allocated to cost pools inside a movement focus, taking into account an expense driver. There is no proportiona.
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Life Cycle Costing Critical Evaluation ReportAnkur Aggarwal
Life Cycle Costing (LCC) is an important economic analysis used in the selection of alternatives that impact both pending and future costs. It compares initial investment options and identifies the least cost alternatives for a twenty year period.
NUMERICAL SIMULATIONS OF HEAT AND MASS TRANSFER IN CONDENSING HEAT EXCHANGERS...ssuser7dcef0
Power plants release a large amount of water vapor into the
atmosphere through the stack. The flue gas can be a potential
source for obtaining much needed cooling water for a power
plant. If a power plant could recover and reuse a portion of this
moisture, it could reduce its total cooling water intake
requirement. One of the most practical way to recover water
from flue gas is to use a condensing heat exchanger. The power
plant could also recover latent heat due to condensation as well
as sensible heat due to lowering the flue gas exit temperature.
Additionally, harmful acids released from the stack can be
reduced in a condensing heat exchanger by acid condensation. reduced in a condensing heat exchanger by acid condensation.
Condensation of vapors in flue gas is a complicated
phenomenon since heat and mass transfer of water vapor and
various acids simultaneously occur in the presence of noncondensable
gases such as nitrogen and oxygen. Design of a
condenser depends on the knowledge and understanding of the
heat and mass transfer processes. A computer program for
numerical simulations of water (H2O) and sulfuric acid (H2SO4)
condensation in a flue gas condensing heat exchanger was
developed using MATLAB. Governing equations based on
mass and energy balances for the system were derived to
predict variables such as flue gas exit temperature, cooling
water outlet temperature, mole fraction and condensation rates
of water and sulfuric acid vapors. The equations were solved
using an iterative solution technique with calculations of heat
and mass transfer coefficients and physical properties.
Welcome to WIPAC Monthly the magazine brought to you by the LinkedIn Group Water Industry Process Automation & Control.
In this month's edition, along with this month's industry news to celebrate the 13 years since the group was created we have articles including
A case study of the used of Advanced Process Control at the Wastewater Treatment works at Lleida in Spain
A look back on an article on smart wastewater networks in order to see how the industry has measured up in the interim around the adoption of Digital Transformation in the Water Industry.
Overview of the fundamental roles in Hydropower generation and the components involved in wider Electrical Engineering.
This paper presents the design and construction of hydroelectric dams from the hydrologist’s survey of the valley before construction, all aspects and involved disciplines, fluid dynamics, structural engineering, generation and mains frequency regulation to the very transmission of power through the network in the United Kingdom.
Author: Robbie Edward Sayers
Collaborators and co editors: Charlie Sims and Connor Healey.
(C) 2024 Robbie E. Sayers
Hybrid optimization of pumped hydro system and solar- Engr. Abdul-Azeez.pdffxintegritypublishin
Advancements in technology unveil a myriad of electrical and electronic breakthroughs geared towards efficiently harnessing limited resources to meet human energy demands. The optimization of hybrid solar PV panels and pumped hydro energy supply systems plays a pivotal role in utilizing natural resources effectively. This initiative not only benefits humanity but also fosters environmental sustainability. The study investigated the design optimization of these hybrid systems, focusing on understanding solar radiation patterns, identifying geographical influences on solar radiation, formulating a mathematical model for system optimization, and determining the optimal configuration of PV panels and pumped hydro storage. Through a comparative analysis approach and eight weeks of data collection, the study addressed key research questions related to solar radiation patterns and optimal system design. The findings highlighted regions with heightened solar radiation levels, showcasing substantial potential for power generation and emphasizing the system's efficiency. Optimizing system design significantly boosted power generation, promoted renewable energy utilization, and enhanced energy storage capacity. The study underscored the benefits of optimizing hybrid solar PV panels and pumped hydro energy supply systems for sustainable energy usage. Optimizing the design of solar PV panels and pumped hydro energy supply systems as examined across diverse climatic conditions in a developing country, not only enhances power generation but also improves the integration of renewable energy sources and boosts energy storage capacities, particularly beneficial for less economically prosperous regions. Additionally, the study provides valuable insights for advancing energy research in economically viable areas. Recommendations included conducting site-specific assessments, utilizing advanced modeling tools, implementing regular maintenance protocols, and enhancing communication among system components.
Industrial Training at Shahjalal Fertilizer Company Limited (SFCL)MdTanvirMahtab2
This presentation is about the working procedure of Shahjalal Fertilizer Company Limited (SFCL). A Govt. owned Company of Bangladesh Chemical Industries Corporation under Ministry of Industries.
Using recycled concrete aggregates (RCA) for pavements is crucial to achieving sustainability. Implementing RCA for new pavement can minimize carbon footprint, conserve natural resources, reduce harmful emissions, and lower life cycle costs. Compared to natural aggregate (NA), RCA pavement has fewer comprehensive studies and sustainability assessments.
Student information management system project report ii.pdfKamal Acharya
Our project explains about the student management. This project mainly explains the various actions related to student details. This project shows some ease in adding, editing and deleting the student details. It also provides a less time consuming process for viewing, adding, editing and deleting the marks of the students.
AKS UNIVERSITY Satna Final Year Project By OM Hardaha.pdf
Ss 03 CCP- AACE.org cost engineering management training- 2017 - dr. moustafa ismail ch 7-8
1. CCP Cost Engineering Training 1011 BTA - Dr. Moustafa Ismail 2017 LEC- 3 1
Cost Engineering Management
Training Course:
Association for the Advancement
of Cost Engineering
Nov. 2017
LECTURE 3
وبركاته هللا ورحمة عليكن السالم
2017
2. Nov. 2017CCP Cost Engineering Training 1011 BTA - Dr. Moustafa Ismail 2017 LEC- 3 2
Section 1 Chapter 7- Economic Costs
4. Payback Period Method
• Is the period of time necessary for the benefits of the project to pay
back the associated costs for the project.
• Differences in the timing of cash flows are not considered, nor are the
benefits and costs beyond the payback period.
• Payback period analysis is approximate and may not yield the same
result as with other more precise methods, like NPV or EUAC criteria.
Ex: An investment of $400,000 with benefits of $100,000/year have a
payback period of 4 years ($400K/$100K = 4 years). However, a
$4,000,000 investment with benefits of $800,000 per year and a payback
period of 5 years ($4,000K/$800K = 5 years) and it might be the best
choice on other criteria.
3. Nov. 2017CCP Cost Engineering Training 1011 BTA - Dr. Moustafa Ismail 2017 LEC- 3 3
Section 1 Ch.8- Activity based cost management
Indirect (overhead) expenses are displacing direct expenses
Direct laborers are employees who perform the frontline, repeatable work
that is closest to the products, customers.
These employees’ work is highly repeatable at some level, for example, a
teller in a bank. Figure 8.1 is a chart that includes this type of expense,
plus the other two major expense components of any organization’s cost
structure, its purchased materials and its indirect and shared expenses –
commonly referred to as overhead.
Cost
component
4. Nov. 2017CCP Cost Engineering Training 1011 BTA - Dr. Moustafa Ismail 2017 LEC- 3 4
Section 1 Ch.8- Activity based cost management
Indirect (overhead) expenses are displacing direct expenses
Most companies are experienced at monitor & measuring cost of labors
recurring work, i.e. Standard Cost.(tellers but not indirect/ vice president & higher)
In Figure 8.1. it reveals that over the last few decades, the indirect support
expenses have been displacing the recurring costs.
The organization already has substantial visibility of recurring costs, but it
does not have any insights/understanding into its indirect expenses.
ABC/M can help provide for insights, better understanding and learning.
ABC/M extends to the indirect expenses the understanding & visibility of
spending that already applied to recurring laborer.(indirect/ vice P and higher)
ABC/M can then become an organization-wide method of understanding
work activity costs, as well as the standard costs of outputs.(recurring)
5. Nov. 2017CCP Cost Engineering Training 1011 BTA - Dr. Moustafa Ismail 2017 LEC- 3 5
Section 1 Ch.8- Activity based cost management
Indirect (overhead) expenses are displacing direct expenses
The shift to indirect expenses displacing direct labor reveals the cost of
complexity.
ABC/M does not fix or simplify complexity, but ABC/M points out where
the complexity is and where it comes from.
Expressing activities with action verb & link outputs with expenses
General ledger:
• It shows the classic monthly responsibility-center statement report that managers
receive.
• It uses chart of account and provides what was spent, Structured around cost
centers to accrue the trades to the relevant accounts, it is transaction oriented.
Activity base cost management- ABC/M: ( Ex: next figure)
• It uses the chart of activities to assign the expenses to some activity, it is
work/activity oriented.
• Estimates the unit costs and denotes the activities by action verb, noun,…/
print/excavate/ inspect/ test and commission (Ex. process customer claim).
6. Nov. 2017CCP Cost Engineering Training 1011 BTA - Dr. Moustafa Ismail 2017 LEC- 3 6
Section 1 Ch.8- Activity based cost management
Salaries= ⅀ % (labor+ technician + engineer+ accountant) sharing in an activity
%
%
% %
121,000
Incr/decrease
depend. On
claims no i.e
activity driver
SK 6 page 81
7. Nov. 2017CCP Cost Engineering Training 1011 BTA - Dr. Moustafa Ismail 2017 LEC- 3 7
Section 1 Ch.8- Activity based cost management
Drivers trigger and work load
In the ACB/M the $121,000 can increase, decrease based on the
activity driver( no of claims) and so other activities, each one has its
own driver, ( ACB) no longer recognizing the organizational chart
and artificial boundaries. The focus is now on the work that
organization performs, and what affects the level of the workload.
Cost re-assignment network
• In complex organizations, there can be a substantial chain of indirect
activities prior to work activities that finally trace into the final cost
objects. These chains result in activity-to-activity assignments, and
they rely on intermediate activity drivers in same way that final cost
objects rely on activity drivers to re-assign costs into them.
8. Nov. 2017CCP Cost Engineering Training 1011 BTA - Dr. Moustafa Ismail 2017 LEC- 3 8
Section 1 Ch.8- Activity based cost management
• ABC re-assigns the complete cost into the final products, service lines,
channels, customers,
• ABC connects customers to the unique resources they consume.
• The ABC cost assignment network consists of the three modules
connected by cost assignment paths, including:
1.Resources
are the capacity to
perform work, they
are traced to
include/convey
resource expenses in
activity costs. Ex: of
resources are salaries,
operating supplies, or
electrical power
2.Activity module
It is where work is
performed and where
resources are
converted into some
type of output. It
contains the structure
to assign activity costs
to cost objects (or to
other activities).
3.Cost objects
Represent broad variety
of outputs and services
where costs accumulate
customers are the final-
cost objects. Ex: Cost
objects, products, service
lines, outputs of internal
processes, distribution
channels, customers.
9. Nov. 2017CCP Cost Engineering Training 1011 BTA - Dr. Moustafa Ismail 2017 LEC- 3 9
Section 1 Ch.8- Activity based cost management
Using the attributes of activity based costing
One role for calculating costs is to help performing organization identify
which of their organization’s work activities are:
• Not required at all and can be eliminated (e.g., a duplication of effort).
• Ineffectively done, can be reduced/redesigned outdated policy/ procedure
• Required to sustain the organization (i.e., the work is not directly caused
by making a product or delivering services through channels to
customers), therefore it may not be possible to reduce or eliminate work
activity- provide plant security, compliance with regulations
• Discretionary and can be eliminated (annual employees’ picnic).
ABC/M systems provide for distinguishing these work activities, either
by including them in a cost assignment structure (sustaining cost
objects) or, by tagging their costs as an overlay (i.e., attributes).
10. Nov. 2017CCP Cost Engineering Training 1011 BTA - Dr. Moustafa Ismail 2017 LEC- 3 10
Section 1 Ch.8- Activity based cost management
An example of a range of a tag:
1. Very important versus required versus postponable.
2. High value adding versus- low-value-adding scale
3. How well activity is performed, such as exceeds customer expectation,
meets, or is below.
Saving
11. Nov. 2017CCP Cost Engineering Training 1011 BTA - Dr. Moustafa Ismail 2017 LEC- 3 11
Section 1 Ch.8- Activity based cost management
Local vs. enterprise-wide ABC/M
• A common misconception is that the scope of an ABC/M system must
be enterprise-wide while ABC/M can also be applied to subsets of the
organization for process improvement, rather than revenue enhancement
and profit margin increases.
• Commercial ABC/M software now enables consolidating some, and
usually all, of the local, children ABC/M models into the enterprise-
wide, parent ABC/M model.
12. Nov. 2017CCP Cost Engineering Training 1011 BTA - Dr. Moustafa Ismail 2017 LEC- 3 12
Section 1 Ch.8- Activity based cost management
Local vs. enterprise-wide ABC/M- cont.
• local ABC/M model data are used for tactical purposes, often to
improve productivity. In contrast, the consolidated enterprise-wide
ABC/M model is often used for strategic purposes because it helps
focus on where to look for problems and opportunities.
• Enterprise-wide models are popular for calculating profit margin data at
all levels
13. Nov. 2017CCP Cost Engineering Training 1011 BTA - Dr. Moustafa Ismail 2017 LEC- 3 13
Section 1 Ch.8- Activity based cost management
Application of local ABC/M
• The objective of local ABC/M models is not to calculate the profit
margins of products, service lines, and customers; it is to compute the
diverse/assorted costs of outputs to better understand how they create
organization cost structure
• The application when marketing, recruiting, or promotion department
are trying multiple channels like newspapers, radio, television,
tradeshows, websites, billboards, and so forth.
• ABC/M calculation define the costs versus benefits of all the channel
combinations to rank order least to best return on spending.
14. Nov. 2017CCP Cost Engineering Training 1011 BTA - Dr. Moustafa Ismail 2017 LEC- 3 14
Section 1 Ch.8- Activity based cost management
Importance of ABC/M
• In the past a company poor decision could be masked by the
profit, but the current competition precludes such masking and a
company can no longer carry unprofitable products and service
lines.
• With activity-based costing visibility, organizations can identify
where to remove waste, low-value-adding costs, and unused
capacity, as well as understanding what drives their costs.
• They can also see the degree of alignment of their cost structure
with their organization’s mission and strategy
15. Nov. 2017CCP Cost Engineering Training 1011 BTA - Dr. Moustafa Ismail 2017 LEC- 3 15
Section 1 Ch.8- Activity based cost management
ABC/M in advanced, mature users
• Integrating the ABC/M output data with their decision-support systems,
such as their cost estimating, predictive planning, budgeting, driver-
based rolling financial forecasts, Customer Relationship Management
(CRM), and balanced scorecard and dashboards performance
measurement systems
• Collecting and automatically importing data into the ABC/M system.
• Automatically exporting the calculated data out of their ABC/M system.
• For experienced ABC/M users, ABC/M eventually becomes part of their
core information technologies.
16. Nov. 2017CCP Cost Engineering Training 1011 BTA - Dr. Moustafa Ismail 2017 LEC- 3 16
Section 1 Ch.8- Activity based cost management
Exercise: Test your activity
start
END
mandatory
END
END
END
17. CCP Cost Engineering Training 1011 BTA - Dr. Moustafa Ismail 2017 LEC- 3 17
Training Course:
Association for the Advancement
of Cost Engineering
Nov. 2017