Home About us Contact
|
Home About us Contact | ||
|
|
||
Variable Costs (variable + cost)
Selected AbstractsDiscounting decision for enterprises with high fixed cost and low variable costINTERNATIONAL TRANSACTIONS IN OPERATIONAL RESEARCH, Issue 2 2006Ping Hui Hsu Abstract Higher sales are the key to increased profit, especially for low variable cost industries. The use of quantity discount to promote business is an important way to increase sales. This study evaluates the use of discount, prepaid, multiple-purchase credit to increase sales. The purpose is to develop a strategy to maximize the unit revenue by simultaneously determining the discount rate and utility. A numerical example and sensitivity analysis are given to illustrate the theory. [source] Successes and Lessons Learned Implementing the Sepsis BundleJOURNAL FOR HEALTHCARE QUALITY, Issue 4 2009Wayne E. Soo Hoo Abstract: Sepsis is well described in the literature as a leading cause of possibly preventable death in the United States. Analysis of baseline data indicated capacity to reduce mortality, significant variation in clinical practice patterns and opportunities for reducing cost per case. Following an enterprise-wide challenge to save lives, a multidisciplinary, facility-based team was organized to improve sepsis care. Systematic improvements in recognizing sepsis and standardizing care resulted in a dramatic reduction in mortality and a significant reduction in direct variable cost. [source] Clinical and Economic Outcomes of Infants Receiving Breast Milk in the NICUJOURNAL FOR SPECIALISTS IN PEDIATRIC NURSING, Issue 1 2001Amy J. Barton ISSUES AND PURPOSE. This study compared clinical and economic outcomes for infants who were exclusively fed breast milk and infants who were fed commercial formula. DESIGN AND METHODS. A retrospective medical record review from a regional neonatal intensive care unit (N = 80) using consultation logs from the lactation coordinator and a matched sample of formula-fed infants. RESULTS. Neither clinical (weight gain, length of stay, days of parenteral nutrition) nor economic outcomes (direct variable costs, net revenue) differed significantly between the groups. PRACTICE IMPLICATIONS. While it may not be possible to demonstrate sufficient cost savings while the infant resides within the NICU to justify a lactation coordinator, long-term clinical and economic outcomes may be sensitive to this specialized nursing service. [source] Uncertainty, Real Options, and Cost Behavior: Evidence from Washington State HospitalsJOURNAL OF ACCOUNTING RESEARCH, Issue 5 2005SANJAY KALLAPUR ABSTRACT This study tests an implication of the real-options theory of investment, that uncertainty leads firms to prefer technologies with low fixed and high variable costs. In 1983, a change in Medicare reimbursement increased the uncertainty of revenues for hospitals. Using a sample of 831 departments in 59 Washington State hospitals over the 1977,1994 period, we find that the ratio of variable to total costs increased after 1983. This increase is not attributable to a gradual increase in the ratio over time: We estimate a significant increase after 1983 even after controlling for a time trend. Further, we find a greater increase in the variable-to-total cost ratio for hospitals that had higher percentages of Medicare patients, increasing our confidence in the conclusion that the change in cost behavior is attributable to Medicare's change in reimbursement. [source] Activity-Based Pricing in a MonopolyJOURNAL OF ACCOUNTING RESEARCH, Issue 3 2003V. G. Narayanan abstract In this article, I study the interaction between cost accounting systems and pricing decisions in a setting where a monopolist sells a base product and related support services to customers whose preference for support services is known only to them. I consider two pricing mechanisms,activity-based pricing (ABP) and traditional pricing,and two cost-accounting systems,activity-based costing (ABC) and traditional costing, for support services. Under traditional pricing, only the base product is priced, whereas support services are provided free because detailed cost-driver volume information on the consumption of support services by each customer is unavailable. Under ABP, customers pay based on the quantities consumed of both the base product and the support services because detailed cost-driver volume information is available for each customer. Likewise, under traditional costing for support services the firm makes pricing decisions on cost signals that are noisier than they are under ABC. I compare the equilibrium quantities of the base product and support services sold, the information rent paid to the customers, and the expected profits of the monopolist under all four combinations of cost-driver volume and cost-driver rate information. I show that ABP helps reduce control problems, such as moral hazard and adverse selection problems, for the supplier and increases the supplier's ability to engage in price discrimination. I show that firms are more likely to adopt ABP when their customer base is more diverse, their customer support costs are more uncertain, their costing system has lower measurement error, and the variable costs of providing customer support are higher. Firms adopt ABC when their cost-driver rates for support services under traditional costing are noisier measures of actual costs relative to their cost-driver rates under ABC and when the actual costs of support services are inherently uncertain. I also show that cost-driver rate information and cost-driver volume information for support services are complements. Although the prior literature views ABC and activity-based management (ABM) as facilitating better decision making, I show that ABC and ABP (a form of ABM) are useful tools for addressing control problems in supply chains. [source] Balancing fertility management and economics in organic field vegetable rotationsJOURNAL OF THE SCIENCE OF FOOD AND AGRICULTURE, Issue 15 2007Ulrich Schmutz Abstract BACKGROUND: Organic field-scale vegetables are among the most profitable enterprises in organic farming systems. They are also some of the most nutrient-demanding crops, and many organic arable systems with field-scale vegetables are stockless. Without livestock manure inputs, nutrient supply depends on fertility-building crops, which generate only costs and no income. Different strategies of fertility management were compared on a central England research farm. Fertility management treatments consisted of different lengths of fertility building with green waste compost additions. Outputs and inputs in terms of nutrients and economics were monitored for 31 rotations during 1996,2002. RESULTS: N, P and K rotational nutrient balances, as well as C inputs, showed a negative relationship with rotational gross margins. Variable and allocated fixed costs of fertility building were low, between 2 and 5% of variable costs (£0.5,2 ha,1 for 1 kg N ha,1 supplied to the rotation). The intensity of vegetable cropping in these rotations was moderate (25,40% vegetable crops in the rotation) and balancing of fertility management and economics was possible at this intensity without livestock manure or other permitted fertiliser additions. CONCLUSION: Completely stockless systems (in analogy may be called vegan) are possible in organic vegetable production without compromising on fertility or economics. However, for a higher vegetable-cropping intensity (up to 90%) a more sophisticated mix of short-term fertility-building and N-trapping crops will be needed and such rotations may require further external addition of green waste or livestock manure. Copyright © 2007 Society of Chemical Industry [source] An Economic Analysis of Freshwater Prawn, Macrobrachium rosenbergii, Farming in Mymensingh, BangladeshJOURNAL OF THE WORLD AQUACULTURE SOCIETY, Issue 1 2008Nesar Ahmed This paper deals with production systems, cost structure, and profitability of freshwater prawn, Macrobrachium rosenbergii, farming in a new area of Mymensingh district in the north-central part of Bangladesh. In the study area, prawn farming practice is still extensive, and only a few farmers (20%) cultivate semiintensively. The costs and returns of extensive and semiintensive farming systems are compared. All farmers in different farming systems made a profit, with seed and feed dominating variable costs. Considerable variation in production costs and profitability was observed. Based on the Cobb,Douglas production function model, return to scale indicates that there is scope to increase production and income from prawn farms in extensive and semiintensive systems by applying more inputs (i.e., seed, feed, and fertilizer). [source] Effect of Stocking Weight and Stocking Density on Production of Hybrid Striped Bass (Sunshine) in Earthen Ponds in the Second Phase of a 2-Phase SystemJOURNAL OF THE WORLD AQUACULTURE SOCIETY, Issue 1 2004Louis R. D'Abramo Sunshine bass from Phase I or pond production were graded into two weight classes, 3 and 5 g, and stocked into experimental earthen ponds at a density of either 8,649/ha or 11,120/ ha in a 2 × 2 factorial design. After stocking, the fish were fed a commercially manufactured feed (43.0-45.5% crude protein) twice daily to satiation for 17 mo. At harvest, mean survival ranged from 67.4 to 84.8% but was highest for the fish stocked at 5g. Average production Tor ponds stocked at 8,649/ha and 11,120/ha, regardless of stocking weight, was 4,506 kg/ha and 5350 kg/ha, respectively. Production and percentages of assigned weight classes were not significantly different among treatments as a result of wide variation among replicates. Using size-dependent market prices assigned to the different harvest size groups, an economic analysis revealed gross receipts, variable costs, and total costs for the 11,120/ha 5-g treatment. Net returns were not significantly different among the four treatments due to large variation among replicates per treatment. These results confirm that the traditional phase II of pond production can be eliminated in favor of a direct stocking of phase I fish into a single production phase and economically competes very well with traditional three-phase growout management. The potential reduction in turnover time of production units achieved through the direct stock practice is an efficiency trait that should translate into significantly higher returns and a greater profit over the long term. Further reduction of stocking density combined with a stocking weight greater than 5 g should translate into greater proportion of larger, higher valued fish at harvest and a growout period of 18-20 mo, rather than the 24-30 mo traditionally needed for the combined phase II and phase III of production. [source] REBUILDING THE EASTERN BALTIC COD STOCK UNDER ENVIRONMENTAL CHANGE (PART II): TAKING INTO ACCOUNT THE COSTS OF A MARINE PROTECTED AREANATURAL RESOURCE MODELING, Issue 1 2009CHRISTINE RÖCKMANN Abstract This study adds a cost analysis of the Eastern Baltic cod fishery to the existing model presented in Röckmann et al. [2007a]. As cost data on this international fishery do not exist, data from Denmark are extrapolated to the whole international fishery. Additionally, unit and total variable costs are simulated, and the sensitivity to a set of different cost,stock and cost,output elasticities is tested. The study supports preliminary conclusions that a temporary marine reserve policy, which focuses on protecting the Eastern Baltic cod spawning stock in the International Council for the Exploration of the Sea (ICES) subdivision 25, is a valuable fisheries management tool to (i) rebuild the overexploited Eastern Baltic cod stock and (ii) increase operating profits. The negative effects of climate change can be postponed for at least 20 years,depending on the assumed rate of future climate change. Including costs in the economic analysis does not change the ranking of management policies as proposed in the previous study where costs were neglected. [source] Free riding in a multi-channel supply chainNAVAL RESEARCH LOGISTICS: AN INTERNATIONAL JOURNAL, Issue 8 2009Fernando Bernstein Abstract Free riding in a multichannel supply chain occurs when one retail channel engages in the customer service activities necessary to sell a product, while another channel benefits from those activities by making the final sale. Although free riding is, in general, considered to have a negative impact on supply chain performance, certain recent industry practices suggest an opposite view: a manufacturer may purposely induce free riding by setting up a high-cost, customer service-oriented direct store to allow consumers to experience the product, anticipating their purchase at a retail store. This article examines how the free riding phenomenon affects a manufacturer's supply chain structure decision when there are fixed plus incremental variable costs for operating the direct store. We consider factors such as the effort required to find and buy the product at a retail store after visiting the direct store, the existence of competing products in the market, and the extent of consumer need to obtain direct-store service. © 2009 Wiley Periodicals, Inc. Naval Research Logistics, 2009 [source] Switching costs, dynamic uncertainty, and buyer,seller relationships,NAVAL RESEARCH LOGISTICS: AN INTERNATIONAL JOURNAL, Issue 8 2007Nagesh N. Murthy Abstract We analyze strategic relationships between buyers and sellers in markets with switching costs and dynamic uncertainty by investigating the scenario wherein a representative buyer trades with two foreign sellers located in the same foreign country. We show that, under exchange rate uncertainty, switching costs may lead to switching equilibria where both sellers co-exist in the market with the buyer, or no-switching equilibria where either seller captures the market. The presence of exchange rate uncertainty facilitates competition by allowing the sellers to co-exist in the market with the buyer. However, if the level of uncertainty is beyond a threshold, the only viable equilibria are those where one of the sellers captures the market. Further, depending on the level of exchange rate uncertainty and the sellers' variable costs, switching costs may either raise or lower the level of prices in long-term contracts between the buyer and the sellers. © 2007 Wiley Periodicals, Inc. Naval Research Logistics, 2007 [source] Clinical and economic outcomes for term infants associated with increasing administration of antibiotics to their mothersPAEDIATRIC & PERINATAL EPIDEMIOLOGY, Issue 4 2007Tiffany S. Glasgow Summary Implementation of national guidelines for the prevention of group B streptococcal (GBS) infections has led to an increase in intrapartum antibiotic use and reduction in early-onset GBS infections in newborns. Other outcomes, including the clinical diagnosis of sepsis in term infants, treatment with antibiotics, length of stay, and cost have not been described. To examine these outcomes, we performed an analysis of maternal and newborn data collected between 1998 and 2002 of 130 447 in-hospital births of newborns ,37 weeks gestation and their mothers from a large vertically integrated healthcare organisation in Utah. The main outcome measures included: (i) the number of women delivering at term who received intravenous antibiotics; (ii) the number of newborns treated for ,clinical sepsis', which was defined as receiving antibiotics for >72 h and the number of newborns who received antibiotics for ,48 h, i.e. a ,rule-out-sepsis' course. We also compared the lengths of stay and variable costs of infants whose mothers received antibiotics with those whose mothers did not. We found that the proportion of mothers who received intravenous antibiotics rose from 26.8% in 1998 to 40.6% in 2002 (P < 0.0001). The proportion of newborns treated for clinical sepsis ranged from 1.2% to 1.4% over the 5-year period. (P for trend = 0.04). After controlling for maternal chorioamnionitis, delivery by caesarean section and maternal GBS status, newborns of mothers who received antibiotics were significantly more likely to be treated for clinical sepsis than were newborns of mothers who had not received them [adjusted OR = 3.3; 95% CI 2.9, 3.8]. The average length of stay for newborns whose mothers were treated with antibiotics was 55.8 h compared with 41.6 h for those not treated (P < 0.0001). The cost of caring for newborns whose mothers received antibiotics was $740 compared with $638 for those whose mothers had not received them (P < 0.001). [source] | |||||||||||||