Total cost accounting

Table 6.2 Total cost accounting - cost types.

Integrating environmental costs into a capital budgeting analysis. Similar to total cost accounting (TCA). Synonymous with true cost accounting... 

Total cost accounting (TCA) (II) Term used as a synonym for either the definition given to FCA or as a synonym for TCA (Spitzer et al. 1993) (1) Conventioiial costs, (2) hidden costs, (3)liability costs, (4) less tangible costs... 

Maintenance costs account for a large fraction of the total operating expenditure (opex) of a project. Because of the bath tub curve mentioned above, maintenance costs typically increase as the facilities age just when the production and hence revenues enter into decline. The measurement and control of opex often becomes a key issue during the producing lifetime of the field as discussed in Section 14.0. However, the problem should be anticipated when writing the FDP. 

Economics. In contrast to NSP, the high nutrient content of TSP makes shipment of the finished product preferable to shipping of the raw materials. Plants, therefore, are located at or near the rock source. The phosphoric acid used, and the sulfuric acid required for its manufacture, usually are produced at the site of the TSP plant. As in the case of NSP, the cost of raw materials accounts for more than 90% of the total cost. Most of this is the cost of acid. 

Textiles. A unique combination of desirable quaUties and low cost accounts for the demand for acetate ia textiles. In the United States, acetate and triacetate fibers are used ia tricot-knitting and woven constmctions, with each accounting for approximately half the total volume. This distribution changes slightly according to market trends. The main markets are women s apparel, eg, dresses, blouses, lingerie, robes, housecoats, ribbons, and decorative household appHcations, eg, draperies, bedspreads, and ensembles. Acetate has replaced rayon filament ia liner fabrics for men s suits and has been evaluated for nonwoven fabrics (79—81). 

Between 1979 and 1991, the amounts of herbicide apphed in the United States have remained constant, but the expenditures on herbicides have increased 54%. Agricultural costs accounted for ah. of this increase and more, since herbicide user expenditures in the government/commercial and home sectors combined dropped 3 to 4% during that period. Increased weed control costs related to crop protection have also contributed to the 37% increase, since 1988, in total annual user expenditures for pesticides in general, ie, herbicides, fungicides, and insecticides. In the United States, agricultural uses (ca 1993) account for more than 67% of total pesticide user expenses and 75% of the quantity used annually. Herbicides are now the lea ding type of pesticides in terms of both user expenditures and volumes used (1). 

Nonraw-material variable costs consist largely of utiHty costs, but other costs can be significant in this area. Eor example, operating costs for additional waste treatment are in this category. Nonraw-material variable costs account for 5—20% of the total manufacturing cost of an alkylphenol operation. 

The table shows that energy costs account for 80% of the total cost during the plant s period of operation. The actual costs of the filter, investment, and maintenance correspond to about 20%, while the costs of dumping amount to only 0.5%. The calculation is based on filtering outdoor air, and filters in industrial applications can have quite different figures. 

Electric power systems can be thought of as being comprised of three important sectors generation, transmission, and distribution. For most utilities, generation capital equipment costs account for approximately 50 percent of total plant in costs. Generation also accounts for close to 75 percent of total operation and maintenance expense. 

In dealing with environmental questions, economists emphasize efficiency, social welfare, and the need for cost accountability. A basic principle for efficiency is that all costs be borne by the entity who generates them in production or consumption. For example, production and consumption of diesel fuel will be socially inefficient if significant resulting costs are shifted to others who happen to be downwind or downstream from the refinery that makes the fuel or the truck that burns it. The benefits of making and using the fuel should exceed the cost— society at large—or else the process reduces total social welfare. 

The tables that follow give the costs of various SCP production processes in comparative rather than in actual form. To see what this means examine Table 4.9. The production cost of raw materials for yeasts grown on n-alkanes is given as 58.5. This means that tire cost of raw materials accounts for 58.5% of the total production costs of this process. The same cost for bacteria grown on methanol is 73.8. This means that in this case 73.8% of the total production cost is accounted for by raw materials. This does not mean that the actual cost of raw materials for tire methanol process is more titan that for the n-alkanes process, as the total costs of the two processes are not necessarily similar. 

Although atypical antipsychotic agents may cost several times as much as traditional antipsychotics, drug costs in schizophrenia account for only 1-4% of the total treatment cost (Knapp, 1997). The argument then is that a small increase in drug costs— say to 10% of total cost—may result in disproportionate savings in the highly expensive direct hospital costs, if clinical trial... 

Apart from the actual purchase cost a business pays a supplier for a chemical, there are costs that are usually not considered. Happily there has been considerable development of approaches to Total Cost Assessments or environmental accounting, and the reader is strongly encouraged to seek out more information about how this is done. Application of Total Cost Assessment will provide a strategic view of trends that can directly affect the long-term viability of a process and is well worth the effort. 

If the trial is planned through the services of a contract research company, their estimate should include a time and cost accounting which specifies the exact services they will perform for the trial. Services not included are the responsibility of the Study Director and sponsor. When contracting out a field residue study, the contractor s cost estimate will only be a part of the total cost to the sponsor. Make sure that costs... 

COPD is the fourth leading cause of death in the United States in 2000,119,000 adults died from the disease.3 In 2002, COPD was estimated to cost the United States 32.1 billion, with direct medical costs accounting for 18 billion of the total.3 Morbidity, mortality, and costs are all expected to increase over the next decade. 

The estimated cost of equipment, labor, and herbicides for weed control within a specific crop can be very expensive. For example, in 1980, cotton was planted on 5.2 million ha in the United States. The total cost for equipment, labor, and herbicides used to control weeds was estimated to be 547 million (20). Herbicides account for 32% of the total cost while equipment and labor costs were 34% each. 

Hydrogen from surplus wind electricity as vehicle fuel is fairly expensive. According to the calculations and assumptions of Wietschel et al. (2006) the price is 9.5 ct/kWh hydrogen. This is calculated with the assumptions shown in Table 16.2, compression costs of 1.5 ct/kWh and electricity costs from wind power of 4 ct/kWh. However, the 4 ct/kWh, which has a major influence on the total cost (see Fig. 16.10) is debatable, because we are talking about surplus wind and the question is what other alternatives for use exist. An opportunity cost approach may be useful, e.g., taking into account the gains of other uses, like electricity production via the compressed air option, which will lead to a much lower price for the electricity. 

After installation, the total cost of equipment (direct permanent investment) is 6,557,000. Allowing 18% for the cost of contingencies and contractor fees ( 1,180,300), the total depreciable capital is estimated to be 7,737,000. Ten percent of this is assumed to cover the cost of startup, 773,700, giving a total permanent investment of 8,511,000. Working capital is estimated to cover accounts receivable that is, the sales of 30 days production of wafers (41,800 wafers), assumed to sell for 260/wafer, giving 10,868,000. Together with a 2-day inventory of wafers, valued at the product price, the total working capital is 11,520,000. Hence, the total capital investment is 20,031,000. 

Polymeric materials are intrinsically expensive, but their use becomes appealing if one takes into account the processing costs, the new technical possibilities that they permit and the total cost at the end of their lifetime. 

Another important parameter that has to be taken into account when choosing the appropriate diffusion layer is the overall cost of the material. In the last few years, a number of cost analysis studies have been performed in order to determine fuel cell system costs now and in the future, depending on the power output, size of the system, and number of xmits. Carlson et al. [1] reported that in 2005 the manufacturing costs of diffusion layers (for both anode and cathode sides) corresponded to 5% of the total cost for an 80 kW direct hydrogen fuel cell stack (assuming 500,000 units) used in the automotive sector. The total value for the DLs was US 18.40 m-, which included two carbon cloths (E-TEK GDL LT 1200-W) with 27 wt% P ILE, an MPL with PTFE, and Cabot carbon black. Capital, manufacturing, tooling, and labor costs were included in the total. 

---