Embedding management discretionary power into an ABC model for a joint products mix decision

Tsai, Wen Hsien; Lai, Chien Wen; Tseng, Li Jung; Chou, Wen Chin

doi:10.1016/j.ijpe.2008.05.013

Cited by 27 publications

(22 citation statements)

References 23 publications

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“…The costs prior to the split-off point are joint costs, which are the main costs required for the production of various products; while the costs of additional processing procedures of some joint products are separable costs. After the split-off point, whether to sell or continue to process is subject to the marginal contribution of further processing, capacity resource constraints, market demands and other factors [1][2][3].…”

Section: Introductionmentioning

confidence: 99%

“…Activity-based costing (ABC) and the theory of constraints (TOC) have been applied to solve product mix problems; however, a challenging aspect of the product mix problem involves evaluating joint manufactured products, while reducing carbon emissions and environmental pollution to fulfill social responsibility. Many scholars have proposed using TOC, ABC and linear programming (LP) to solve the product mix problem and obtain the optimized results [1,[4][5][6][7][8]. TOC assumes how companies make the most efficient use of resources under existing resources; thus, the model is suitable for short-term decision-making.…”

Section: Introductionmentioning

confidence: 99%

“…With limited resources, companies pursue long-term profits, while reducing environmental pollution, to fulfill social responsibility [17][18][19]. Therefore, joint product mix decision-making should consider the marginal contribution of continuous processing, capacity resource constraints, market demand and other factors [1,3,4], as well as reducing pollution emissions [20]. As TDABC is a new management tool, previous relevant research literature on TDABC is relatively limited [14,16,21].…”

Section: Introductionmentioning

confidence: 99%

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Sustainability Concept in Decision-Making: Carbon Tax Consideration for Joint Product Mix Decision

et al. 2016

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Carbon emissions are receiving greater scrutiny in many countries due to international forces to reduce anthropogenic global climate change. Carbon taxation is one of the most common carbon emission regulation policies, and companies must incorporate it into their production and pricing decisions. Activity-based costing (ABC) and the theory of constraints (TOC) have been applied to solve product mix problems; however, a challenging aspect of the product mix problem involves evaluating joint manufactured products, while reducing carbon emissions and environmental pollution to fulfill social responsibility. The aim of this paper is to apply ABC and TOC to analyze green product mix decision-making for joint products using a mathematical programming model and the joint production data of pharmaceutical industry companies for the processing of active pharmaceutical ingredients (APIs) in drugs for medical use. This paper illustrates that the time-driven ABC model leads to optimal joint product mix decisions and performs sensitivity analysis to study how the optimal solution will change with the carbon tax. Our findings provide insight into 'sustainability decisions' and are beneficial in terms of environmental management in a competitive pharmaceutical industry.

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Sustainability Concept in Decision-Making: Carbon Tax Consideration for Joint Product Mix Decision

et al. 2016

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“…Several scholars adopt the ABC perspective in order to determine the allocation drivers of JC to JPs (Dixon & Trenchard, 2001;Trenchard & Dixon, 2003;Tsai, 1996;Tsai et al, 2008). In this respect, Bromwich and Hong (1999) highlight significant criticisms about the application of ABC methodology on jointness situation.…”

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confidence: 99%

Blood Components as Joint Products: A Literature Review of Cost-Allocation Methods

D’Andrea¹

2017

IJBM

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The object of this review is to present and to shed light on joint cost-allocation methods that are used in the healthcare sector for pricing purposes or cost-effectiveness purposes in different countries. The concept of jointness is illustrated through joint products and joint costs as found in the example of blood component production. The descriptive review, fundamentally concept-centric, highlights that the cost of blood products or blood price-setting is an issue in legislative proposals at the national and state levels and represents a matter of public interest and of public regulation. In applying economic models (based on economic principles and behavior axioms) rather than accounting methodology (based on physical measures or on market value of the split/final products), scholars have brought to light the problems arising from the continuous search for a neutral method for allocating joint costs in the blood production sector. Numerous studies have focused on the blood costs for the health system. Nevertheless, the cost accounting and reimbursement system effectively underlying the acquisition, screening, and transfusion of blood appears, in practice, to be largely obscure. Moreover, the literature provides little insights into the level of "relative importance" assigned to each product in the costing setting. The current status of the discussion offers opportunities for future researches, which could be directed toward investigating the relationships between national systems of healthcare services and the cost-allocation methods used to determine the cost/price of blood components, analyzing the effect of public regulation on blood costs and, lastly, developing a method based more on the benefit-value to users.

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“…(Schulze, Seuring, & Ewering, 2012), verificar como o ABC auxilia os gestores em decisões estratégicas (Lin, Cole, Shreveport, & Shreveport, 2001), como o ABC auxilia na redução de custos (Baykasoglu & Kaplanoglu, 2008;Charles & Hansen, 2008;Homburg, 2005;Qian & Ben-Arieh, 2008;Satoglu, Durmusoglu, & Dogan, 2006;Thyssen, Israelsen, & Jrgensen, 2006). Outros estudos tiveram como foco utilizar o ABC para suporte na decisão de mix de produtos (Tsai, Lai, Tseng, & Chou, 2008); precificação e decisão de capacidade de expansão (Kee, 2008) O ABC integra a família dos métodos de custeio analíticos e pode suportar mensuração de custos históricos, mensuração para modelos preditivos de custos, planejamento de recursos e capacidade e mensuração de desempenho (Turney, 2010 Outro aspecto relevante na adoção de artefatos gerenciais é o estágio de ciclo de vida em que a empresa se encontra em relação ao seu porte (Miller & Friesen, 1983, 1984 Percebe-se que a literatura voltada para o ABC apresenta sentidos opostos e muitas vezes resultados não comparáveis, o que contribui para o não entendimento pleno do método de custeio.…”

Section: Publicações Sobre Fatores Críticos Para a Implementação Do Abcunclassified

A desinstitucionalização do custeio baseado em atividades sob a ótica da nova sociologia institucional

Aillón¹

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Embedding management discretionary power into an ABC model for a joint products mix decision

Cited by 27 publications

References 23 publications

Sustainability Concept in Decision-Making: Carbon Tax Consideration for Joint Product Mix Decision

Sustainability Concept in Decision-Making: Carbon Tax Consideration for Joint Product Mix Decision

Blood Components as Joint Products: A Literature Review of Cost-Allocation Methods

A desinstitucionalização do custeio baseado em atividades sob a ótica da nova sociologia institucional

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