Absorption Costing

This paper presents an improved, efficiency based absorption costing method. Efficiency based absorption costing EBAC represent an algorithm that absorbs costs based on efficiency as the main driver and we compare its results with other methods such as ABC as proof-of-concept. EBAC results in significant cost changes compared to ABC and the traditional costing system (TCS). Businesses could embrace the more efficient EBAC for a host of their pertinent cost control and decision making needs. The EBAC methodology is both easy and convenient to apply as firms currently using ABC could instantly explore EBAC without the need to gather extra information.

Streszczenie: Celem opracowania jest sfalsyfikowanie podstawowego twierdzenia Target Costing (TC) w modelu dyskontowym, aby uchronić inwestorów przed podejmowaniem błędnych decyzji o wdrożeniu inwencji, jak to może mieć miejsce w tradycyjnym modelu TC. Model finansowo-matematyczny przedsięwzięcia innowacyjnego zastosowano jako model symulacyjny, żeby znaleźć minimalną stopę zysku i jednostkowy koszt dopuszczalny, który jest punktem krytycznym dzielącym przedsięwzięcia innowacyjne na spełniające warunki odniesienia sukcesu finansowego i ich niespełniające. Próba falsyfikacji podstawowego twierdzenia za pomocą modus tollendo tolens logiki klasycznej polegała na wykazaniu, że istnieje taki jednostkowy koszt dopuszczalny równy jednostkowemu kosztowi planowanemu, dla którego wartość NPV i IRR nie spełniają warunków odniesienia sukcesu finansowego. Podjęta próba falsyfikacji podstawowego twierdzenia TC nie powiodła się. Oznacza to, że doszło do koroboracji TC. Inwestorzy stosujący dyskontowy model TC jako narzędzie wspomagające podejmowanie decyzji o wdrożeniu inwencji mogą to robić bez obawy podjęcia błędnej decyzji.

In order to vaccinate people, proper supply chain management is an essential requirement. This research paper delves into the COVID-19 vaccine supply chain model within a tertiary care government hospital in North India. Through an observational approach and checklist assessments, the study aims to conduct a comprehensive SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis. Additionally, a TOWS (Threats, Opportunities, Weaknesses, Strengths) analysis will be carried out to formulate strategic recommendations for improving the vaccine supply chain effectiveness. The analysis provides valuable insights into the management, challenges, and potential enhancements of the vaccine distribution process.

This paper presents an improved, efficiency based absorption costing method. Efficiency based absorption costing EBAC represent an algorithm that absorbs costs based on efficiency as the main driver and we compare its results with other methods such as ABC as proof-of-concept. EBAC results in significant cost changes compared to ABC and the traditional costing system (TCS). Businesses could embrace the more efficient EBAC for a host of their pertinent cost control and decision making needs. The EBAC methodology is both easy and convenient to apply as firms currently using ABC could instantly explore EBAC without the need to gather extra information.

This paper presents an improved, efficiency based absorption costing method. Efficiency based absorption costing EBAC represent an algorithm that absorbs costs based on efficiency as the main driver and we compare its results with other methods such as ABC as proof-of-concept. EBAC results in significant cost changes compared to ABC and the traditional costing system (TCS). Businesses could embrace the more efficient EBAC for a host of their pertinent cost control and decision making needs. The EBAC methodology is both easy and convenient to apply as firms currently using ABC could instantly explore EBAC without the need to gather extra information.

Background – Hospital acquired infections (HAIs) have a negative impact on both patients and hospitals. The Central Sterile Services Department (CSSD) is responsible for providing sterilised medical devices for clinical procedures. CSSD is an essential in-house service for patient care, and it serves as a significant indirect cost centre for hospitals. This study ana Methodology– lysed the cost of operations in the CSSD of a Tertiary Care
Teaching Government Hospital in Lucknow, India using the absorption costing method. The Results– total operating cost of CSSD was ₹
13,09,445.98/month, with 43% of the cost being borne by manpower, 22% on electricity and water, 20% on consumables, 12% on machines, and
3% on building. The average cost of CSSD for surgical beds was found to be ₹ 68.52/day. The study's results can aid hospital Conclusion-
administration in decision-making, process redesigning, and allocation of the hospital budget for CSSD operations.

Streszczenie: Celem opracowania jest sfalsyfikowanie podstawowego twierdzenia Target Costing (TC) w modelu dyskontowym, aby uchronić inwestorów przed podejmowaniem błędnych decyzji o wdrożeniu inwencji, jak to może mieć miejsce w tradycyjnym modelu TC. Model finansowo-matematyczny przedsięwzięcia innowacyjnego zastosowano jako model symulacyjny, żeby znaleźć minimalną stopę zysku i jednostkowy koszt dopuszczalny, który jest punktem krytycznym dzielącym przedsięwzięcia innowacyjne na spełniające warunki odniesienia sukcesu finansowego i ich niespełniające. Próba falsyfikacji podstawowego twierdzenia za pomocą modus tollendo tolens logiki klasycznej polegała na wykazaniu, że istnieje taki jednostkowy koszt dopuszczalny równy jednostkowemu kosztowi planowanemu, dla którego wartość NPV i IRR nie spełniają warunków odniesienia sukcesu finansowego. Podjęta próba falsyfikacji podstawowego twierdzenia TC nie powiodła się. Oznacza to, że doszło do koroboracji TC. Inwestorzy stosujący dyskontowy model TC jako narzędzie wspomagające podejmowanie decyzji o wdrożeniu inwencji mogą to robić bez obawy podjęcia błędnej decyzji.

With regard to managers’ important roles in success of companies, the main purpose of this study is to examine the effects of managerial ability on the bankruptcy risk of the Iranian firms listed in the Tehran Stock Exchange, (TSE), and the mediating role of financial performance in that risk. In this study, the data came from a sample of 103 non-financing companies in the TSE from 2004 to 2015. Managerial ability of the companies was measured by the Demirjian’s model (2012). Moreover, the rate of return on assets was applied as a proxy of financial performance, and Emerging Market Scoring model (Altman's Z˝ score) was used as a measure of bankruptcy risk.
The results showed that managerial ability has negative impact on bankruptcy risk. And, financial performance mediates the effect of managerial ability on bankruptcy risk. In other words, managerial ability reduces the bankruptcy risk through improving financial performance. Therefore, it could be concluded that managerial ability is an important factor in the success of the companies in TSE.

This paper investigates the performance of absorption versus direct costing procedures. The setting for our analysis is a product admittance problem that takes place in a stochastic and dynamic production system. We consider the extent to which absorption costing based accounting calculations provide good proxies for hard to observe opportunity costs. We show that the existence of opportunity costs cannot always be used as a defense of absorption costing. In order to guide the comparative ranking of costing procedures, we show the existence of an "open admittance" condition on the parameters of the problem that ensures that absorption costing always out performs direct costing. We conclude by discussing the implications our theory has for the empirical analysis of the absorption costing versus direct costing debate.

This paper will investigate the controversy that is innate between the two costing techniques; Absorption Costing and Marginal Costing and would throw light on which costing technique better serves its purpose in helping management for decision making process and if Marginal Costing technique is concluded as better technique then why it should not be used for external reporting purpose. This paper will only crystallize and highlight the issues descriptively and will not resolve the issues that are inherent between the two costing techniques. The unique thing about this paper is that it is in favor of treating fixed cost as product cost that is it is supporting the advocates of Absorption Costing Technique but it is against to consider profit as a function of production rather it believes that profit should only be considered as function of sales for stock valuation and to help management in decision making process that is, regarding this point it is supporting advocates of Marginal Costing.

This paper will investigate the controversy that is innate between the two costing techniques; Absorption Costing and Marginal Costing and would throw light on which costing technique better serves its purpose in helping management for decision making process and if Marginal Costing technique is concluded as better technique then why it should not be used for external reporting purpose. This paper will only crystallize and highlight the issues descriptively and will not resolve the issues that are inherent between the two costing techniques. The unique thing about this paper is that it is in favor of treating fixed cost as product cost that is it is supporting the advocates of Absorption Costing Technique but it is against to consider profit as a function of production rather it believes that profit should only be considered as function of sales for stock valuation and to help management in decision making process that is, regarding this point it is supporting advocates of Marginal Costing.

This paper will investigate the controversy that is innate between the two costing techniques; Absorption Costing and Marginal Costing and would throw light on which costing technique better serves its purpose in helping management for decision making process and if Marginal Costing technique is concluded as better technique then why it should not be used for external reporting purpose. This paper will only crystallize and highlight the issues descriptively and will not resolve the issues that are inherent between the two costing techniques. The unique thing about this paper is that it is in favor of treating fixed cost as product cost that is it is supporting the advocates of Absorption Costing Technique but it is against to consider profit as a function of production rather it believes that profit should only be considered as function of sales for stock valuation and to help management in decision making process that is, regarding this point it is supporting advocates of Marginal Costing.

Objective: Given the importance of lean inventory and inventory cost as barrier to better performance, there is the challenge of whether absorption costing with higher production and more inventory lead to improved performance, or inventory costs overcome the benefit of absorption costing and makes the performance worse. This study aimed to examine the relationship between inventory investment and company's performance. Method: In line with positive accounting research, this study used panel data analysis with data from 163 companies listed in the Tehran Stock Exchange from 2009 to 2016. Results: Findings showed that there is no significant relationship between inventory investment and company's performance. Furthermore, the findings indicated a significant relationship between changes in inventory investment and sales growth. Conclusion: Inventory holding in the Iranian companies could not have statistically significant effects on company performance.