Costs allocation

Problems of arbitrary cost allocation arise owing to joint production for markets worldwide. 

Vidal CJ, Goetschalckx M (2001) A global supply chain model with transfer pricing and transportation cost allocation. European Journal of Operational Research 129 (1) 134-158... 

DOT (1997). Federal Highway Cost Allocation Study 1997. US Department of Transportation, in co-operation with the Federal Highway Administration, Federal Transit Administration and the Federal Railroad Administration. Washington, DC Department of Transportation. 

The cost of a biocide program component is typically about 10 to 15% of the total program costs (excluding any customer-supplied chlorine program). If the biocide cost allocation increases to 20 to 25% of the total program cost, the proposal is probably dead before the buyer reads it. 

Allocative efficiency defines the extent to which the quantity of product and service supplied is efficient 39. In a broad perspective this means that all customers who are willing to pay a price equal to or above the marginal cost of production and transportation shall be supplied with gas. When it comes to transportation services only, the aim is to have sufficient capacity to serve all shippers with a willingness to pay a tariff equal to or above marginal transportation costs. Allocative inefficiency exists if this aim is not met or if there is excess capacity due to lack of willingness to pay the given tariff. 

Pre-tax profits from sales are calculated by subtracting all costs allocated to the selling country from net revenues. The costs of goods are calculated based on the transfer prices in equation (3.83). 

Cost allocation coupled with widespread lack of transparency regarding costs incurred and services rendered... 

Managing cost centers Internal cost allocation/ charging... 

Cost allocation schemes were replaced by more flexible service contracts that made costs and services rendered much more transparent. These contracts range from more traditional time- and mate-rials-based arrangements to full service agreements, where the service providers and their customers agree on certain output parameters such as uptime/plant performance rather than on input parameters such as maintenance cost. Price negotiations with the customers became the key imperative of this transition phase. 

Labor expenses will need to be allocated between the prescription department and the rest of the pharmacy. These expenses typically are allocated based on the percent of time spent in the prescription department. Marcie Hawkins, the pharmacy manager at Good Service Pharmacy, estimates that she spends 75 percent of her time in the prescription department. Assume that the employee pharmacist and the pharmacy technicians spend 95 percent of their time in the prescription department, so 95 percent of their wages is allocated to the cost of dispensing. The other workers spend about 50 percent of their time in the prescription department. Using these percentages and the wage information contained in the notes under the Income Statement, the total amount of labor costs allocated to the prescription department is 423,165. 

The control of the costs allocated to each project is the next level of cost control for the R D Manager. Monthly auditing is normally employed by companies, with the derivation of the necessary data easily done if the cost per unit system, described in Section B, 3.1.2.1, is used. It should be based on record of time actually spent on the project not on a notional figure. 

The hot water (steam) produced from a cogeneration system is charged with CTOTf, the cost of producing hot water from a low pressure boiler. The balance of the cost of the cogeneration system is then attributable to the shaft work (or electricity) produced. The cost per unit of electricity produced, CE, can be calculated as the difference of the total cost of the cogeneration system and the cost allocated to the hot water, all divided by the amount of electricity produced,... 

Up to this point in this chapter, we have presented what is called traditional cost/managerial accounting. The traditional methods have helped finance departments monitor operations and value inventory, but some people feel that rather than providing accurate picture of a company s costs, this approach focused on direct costs and relied on arbitrary cost allocations such as labor-based overhead rates. 

Such differences in cost allocation conventions may explain part of the high variation in reported phase-specific costs among NCEs. 

Can more or different kinds of studies improve on the existing estimates More careful analysis of project cost accounts and adjustment of estimates for different cost allocation rules would give a more consistent estimate across firms, but it is unlikely the resulting estimates of cash outlays would be very different, and probably not lower. 

Design of a PV module that will withstand 20 years of exposure to a variety of terrestrial environments creates many problems. An FSA cost allocation of 14/m2 for encapsulation, superstrata or substrate and edge-seal/gasket places an additional burden on the encapsulation materials, because the glass superstrata alone has a projected cost of about 10/m2. 

Cost Allocation Knowing what your costs are is especially importemt if you have a make-buy decision or are bidding on new contracts. If a component is used on more than one product (standardization), it can progress much faster on the curve since its stiles come from multiple sources. Manufacturing progress also means that standard costs quickly become obsolete. 

Activity Number of Employees Total Cost Allocation Measure Unit Cost... 

Cost allocation learning and, 1405 time/job determination for, 1392 Cost-benefit analysis activity-based costing (ABC) for, 1704 IS systems, 98-99... 

After exergy accoimting has been performed, we remain with exeigy efficiency indicators (feout/ in, waste/ in, ( in/unit of product) that can be used for optimization and cost-allocation purposes. 

Cost of Site Preparations 5.0% of Total Bare Module Costs Cost of Service Facilities 5.0% of Total Bare Module Costs Allocated Costs for utility plants and related facilities 0... 

ODDs offer advantages that make them promising optical readout systems for LoaD platforms for (bio)chemical sensing [9, 10]. Their benefits include the large installation base, as nowadays almost every manufactured computer contains an ODD low-cost allocation due to high-volume production and submicron optical resolution. 

SCM emphasizes operating processes in accounting for costs. Allocating the company s legal expenses to a manufacturing department muddles the picture. The purpose of the new format is twofold. The first is to provide comparability among supply chain partners as data is collected at different levels. The second purpose is to direct the attention of managers to improvement opportunities. 

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