Abstract This paper briefly describes how one company can use cost allocation procedures. It also shows a schedule with comparison to determine what level of growth can be expected for the future which is part of the cost allocations process.
From the Paper "All companies have a desire to know where and how much they are spending. Of course the outflow of cash for the valuation of costs is directly incurred by cost centers, divisions or areas that have regular costs for doing business. For example a doctor's office may allocate a cost to each patient visit. However in real world business this is not practical and in the case of IBM they have allocated in general terms on the basis of departmental sales. IBM is a leader in the information technologies industry and as such has spent many years trying to maintain its position and advance in the industry (IBM, 2005). By reviewing the statements of earnings for IBM (year 2004 and 2003) on the following page, we can easily see which areas have assessed costs and how much that costs was in actual dollars. "
Abstract This paper discusses issues and problems related to the allocation of costs for an organization. It fist describes an organization's three-step process of allocating costs and how this is carried out. The paper then discusses the significant impact that the allocation of costs has on informal decision making in an organization. It also looks at the impact of not allocating common costs for informal decision making.
From the Paper "Decision making in the organization is affected by the manner in which costs are allocated. The decision makers typically must answer to stakeholder groups. Those groups only see the financial statements. They evaluate the work of the decision makers based on those results. The decision makers will naturally make their decisions based on what makes them look most effective. So the manner in which costs are allocated will thus drive the decision makers, and their choices may not be best for the organization unless costs are allocated accurately. For example, suppose a manager is faced with a choice between two projects, both funded jointly by the organization and a branch of government. If Project A has an allocation formula that places 70% of costs on the organization and Project B has an allocation formula that places 50% of the costs on the organization, the manager will choose Project B. The lower cost base gives the manager a higher likelihood of success. If the reality is that the costs are closer to 50/50 in both cases, then the manager has not necessarily made the best decision for the organization, but rather the decision that will look best for himself."
Abstract This paper explains that major changes in recent years in one of the primary institutions of society and the family have changed the theories of household economics. The author pointed out that one of the hypothesis is that women's power and status within the household are associated with their income-earning ability. The paper relates that many economists have developed bargaining models, which include the formation, function and dissolution of marriage, and family behavior by including information from evolutionary biology, anthropology, game theory, and economic research of family resource allocation and behavior.
Table of Contents
Introduction
Background of Study
Linking Household Economics with Anthropology and Biology
Hypotheses on Household Allocation Processes
Income Pooling
Family Expenditure Patterns and the Attachment Theory
Control over Income: Self-esteem, Power, and Decision-making
Interdependence of the Market and Household Economies
Economic Perspectives
Human Capital
Household and Family
Patterns of Money Management
Sociological Implications of Income Distribution
Social Perspectives
Extending Beyond Parents
Testing Economic Models
Conclusion
From the Paper "In summary, this study shows that fathers have the capacity for responsiveness and care-giving equivalent to that of mothers, but that in most cultures the mother is traditionally the primary caregiver. This pattern is slowly changing in Westernized societies. As of now, however, the mother remains the most responsive party to the child's needs, and therefore may be more likely than the father to spend money to meet those needs. This expenditure depends greatly on her access to resources, whether through decision-making power in the household or through control over her own source of funds. Who makes decisions about expenditures within the family, then, may have a significant impact on the use of resources for meeting the immediate needs of infants and young children."
This paper is a research proposal to study the international management of cross-border risks and capital allocation decisions in a high risk environment.
Abstract This paper explains that, besides the risks inherent in domestic operations, banks, which are engaged in international activities also are exposed to "country risk," or the risk that economic, social and political conditions and events in a foreign country will adversely affect an institution's financial interests. The author points out that, from a practical perspective, accurate and timely country risk assessment is important not only because it affects individual investors but also because it can be systemic; one of the primary purposes of financial regulation is to manage systemic risk. The paper states that the research will be done using a case study methodology to study various country risk/cross border risk management models adopted by a sample of international banks and to assess their robustness and how well they are associated with a framework of planned management actions and capital allocation decisions.
Table of Contents
Introduction
Statement of the Problem
Overview of Study
Purpose of Study
Key Term Definitions
Capital Allocation Decision
Country Risk Ratings
Risk
Preliminary Literature Review
Background and Overview
Current and Future Trends
The Countries' Performance in International Trade
Leverage
Various measures of liquidity
Methodology
Description of the Study Approach
Data-gathering Method and Database of Study
From the Paper "A significant amount of cross-border lending takes place through offices in a bank's home country (or even one of its subsidiaries located in a third country), with no subsidiary (or even branch presence) located in the country in which the borrowing firm is headquartered. Retail banking requires a physical presence of some sort to provide points of contact with customers; by contrast, wholesale banking requires a much smaller investment. "For example, banks with no physical presence in a country can lend substantial volumes of funds to firms and governmental entities of that country through project finance and loan participations." The composition of borrowers will differ, though, depending on whether a foreign bank has a physical presence in a country or manages its loans from offshore locations."
Abstract This paper explores various methods for allocating limited resources, particularly with regard to limited medical resources and more specifically, human organs. The various methods looked at include distribution based on such things as greatest need, odds for success and the social worth of the individual. The supply side of transplantable organs and the pros and cons of incorporating market forces into the procurement and distribution of organs are also discussed.
From the Paper "John Stuart Mill makes the claim that the distribution of wealth is ?a matter of human institution solely,? because even what a person produces himself, he cannot keep unless human institutions protect his right to keep it from those who would steal it from him (133-134). One might assume that utilitarians such as Mill would naturally prefer an egalitarian approach to allocating resources because of the law of diminishing returns, which simply put is that the more one has, the less enjoyment he gets from getting even more. Therefore a more equal distribution would increase the happiness of society as a whole (Shaw 108). A Rawlsian view might also lead one to an egalitarian approach as people, choosing their fate behind a veil of ignorance, would prefer to "maximize the minimum" that they would receive by choosing a society that shares things equally (Shaw 117)."
Abstract This paper attempts to incorporate several stakeholders, as well as a range of cities, in a discussion of the urban allocation of resources. The historical aspect constitutes part of the analysis, while contemporary data and near-future speculations will complete the picture.
Abstract This paper looks at whether the Average Daily Attendance (ADA) or Average Daily Membership (ADM) provides a better way of allocating funding for schools. The paper also looks at provisions for funding of the No Child Left Behind Act, and how best to equalize funding resources.
From the Paper "The Ohio House budget called for a shift in the way students are counted because it believed that Average Daily Membership (ADM) counts phantom students and it preferred to count Average Daily Attendance( ADA). President of the Ohio Federation of Teachers testified before the Ohio Senate Education Committee that because a student is absent on a given day, the cost of the educating that student is not reduced at all. Students who have erratic attendance records actually cost more to educate he said..."
Abstract This paper deals with the evaluation of two different types of allocations regarding the balance sheet of branch companies. Each method includes costs but some are traceable and some are not. Each method is briefly analyzed and evaluated to determine which one is more beneficial.
From the Paper "Obviously costs are allocated to allow departments, accountants and owners/investors etc... to easily see where spending is occurring within a company (Horngren & Sundem, 1990, p. 65). In addition to this, allocations allow a trend of activity to be traceable, which will aid in forecast development for the future. These forecasts can also address the reduction of costs to be determined as a possible new objective for the next business year. We often forget that in order to make money that money must be spent. Costs are a "necessary evil" for all businesses. These costs/expenses can range in many different areas and often include travel expenses and fees, which are incurred to service clients in addition to general offices expenses. In the case for Creative Consumers Consultants, all costs assessed are listed in traceable and non-traceable account listings. "
Abstract This paper is an article review on the topic of cost accounting in the healthcare industry. The article chosen discusses cost accounting practices within 19 hospital centers in Georgia, looked at various parameters such as number of revenue centers compared to service centers, types of accounting methods used, frequency of using a cost accounting methodology, software, etc.
From the Paper "This paper will review the study performed in the fall of 2004 and published earlier this year by Timothy Cairney and Kevin Bennett (2005) titled: Support Department Cost Allocations in The Georgia Healthcare Industry. Tim Cairney is an assistant professor of accountancy with specialized interests in cost and management accounting. His partner, Kevin Bennett, is an assistant professor of health services administration in the Georgia Southern University system. Both are well published. While interest in cost accounting methodologies for the healthcare industry are growing based on the number of recent non-fiction books (including text books) on the subject as well as the dramatic increase in colleges offering specific courses on the topic, Cairney and Bennett report that: "sophisticated support cost centers are used less than may be expected given the complexity of the healthcare firms' operation" (p.90)."
Abstract This paper critically analyzes a research study conducted to assess teen's time allocation on household chores in relation to household demographics, gender and gender biasing. The paper discusses the study purpose, design and methodology and the discusses the limitations of the study and the lack of ability to generalize to the current population.
From the Paper "The Gager, Cooney and Call (1999) study was extremely well done. Their study purpose, design and methodology were quite distinctive based on the comprehensive nature and attention to detail for presentation traditionally only alluded to in other studies. This paper will provide a brief synopsis and critique of the study according to class critique guidelines and as required, in outline form."
Abstract This paper explains that, inevitably, bridges deteriorate over time at different rates: Timely maintenance activities, which are well-planned and carried out with minimal disruption to road users can present substantial savings in terms of both time and money for both bridge owners and road users. The author ponts out that, to tackle the complicated issues regarding bridge management, research activities in the UK as well as other countries in continental Europe concentrate largely on the bridge management process, with attention given to improving the use of limited finances to maximize the returns from the maintenance and repair of the bridge stock as well as reduce additional costs due to traffic delays and lane closures for these activities. The paper includes a critical review of other BMSs used worldwide, development of models to predict bridge condition over time, analysis of the various road user costs and using different optimizing techniques to best allocate finances and optimize bridge performance. 39 tables. 40 figures.
Table of Contents
Introduction
Objective
Bridge Conditions in the U.K.
Introduction
Maintenance and Upgrading
Expenditure
Department of Transport (DoT) Programme
What is a Bridge Management System (BMS)?
Introduction
Department of Transport Structure
Maintenance Agents
BMS in the U.K. and Other Countries
Introduction
Bridge Condition
Other Information in BMS's
Condition Prediction
Cost Models
Decision for Maintenance and Repair
Prioritization
BMS in the U.S.A.
BRIDGIT System
PONTIS System
SMIS System
Inventory
Inspection and Assessment
National Structures Programmes (NSPs)
Prioritization
Project Creation
Whole Life Assessment and Costing
Activities Schedule
Data Accuracy
Design Specifications
Access
Integration with External Systems
Bridge Inspection and Assessment
Bridge Inspection Types
Defects
Bridge Scoring
Introduction
Definitions
Bridge Condition Score (BCS)
Bridge Condition Index (BCI)
Bridge Stock Condition Index (BSCI)
Multi Span Bridges
Bridge Scoring Example
Interpreting BCS's
BCS Results
Histograms for Bridge Stock
Interpreting BCI's
BCI Results
Interpreting BSCI's
Predicting Bridge Condition with Time
Introduction
Markov Chain Approach
Example Calculation
Bridge Condition Example
Bridge Condition Results
Bridge Aggregation Example
Bridge Aggregation Results
Bridge Stock Example
Bridge Stock Results
Traffic Costs
Introduction
Traffic Count Example
Traffic Count Results
Traffic Delay Cost Examples
Delay Costs Results (1st Example)
Delay Costs Results (2nd Example)
Accident Cost Example
Accident Costs Results
Environmental Impact
Introduction
Emissions Example
Emissions Results
Decision-Making and Prioritization
Decision-making
Introduction
Prioritization
Introduction
Dynamic Programming
Budget Allocation Approach
Budget Allocation Results (1st Example)
Budget Allocation Results( 2nd Example)
Budget Allocation Results ( 3rd Example)
Improvements to Budget Allocation Approach
Introduction to BCI optimization approach
Service Potential (BCI) Examples
BCI Optimization Results (1st Example)
BCI Optimization Results (2nd Example)
BCI Optimization Results (3rd Example)
Maintenance Costs Examples
BCI Optimization Results (4th Example)
BCI Optimization Results (5th Example)
BCI Optimization Results (6th Example)
Conclusion
Future Research
From the Paper "It is proposed that the transition probabilities to be used are the Bridge Condition Index (BCI), which operates on a linear scale of 0 (worst) to 100 (best). The degree of severity of bridges is linearly distributed over this range (i.e. BCI of 50 to 51 is the same as 90 to 91), except that costs are expected not to have a linear distribution. This is a useful approach as the BCI (average) is interpreted as 'service potential' and is used as a performance indicator.
Using the example for multi span bridges earlier on, the transition probabilities for a three-state Markov chain model with limiting stage value of 3 is proposed. The probabilities are in accordance to the BCI values for the 'good' bridge arranged in order of descending magnitude (i.e. P(1) = 0.9845 and P(2) = 0.9246). For the purposes of comparison, the other two bridges ('medium' and 'bad') are also modelled and the three are plotted together."
This paper considers the moral and economic implications of the concept of allocating organs to transplant patients on a market-based approach, contrasting it to the current waiting list approach.
Abstract This paper argues that there are economically sound justifications for considering some form of free market approach for transplant organs. It is clear that transplant organs are scarce; nature does not freely provide as many organs as transplant patients want. Moreover, from an economic point of view, there certainly is an organ shortage; the going rate for a liver is below the equilibrium or market-clearing price and so more organs are demanded than could possibly be supplied at current price levels. The paper shows that allowing an organ market to better allocate these products to as many needy patients as possible seems like an improvement upon the current system. However, the proper method of organ allocation cannot be determined without considering the ethical implications of a market-based approach. The paper, therefore, first addresses the ethical issues involved in this matter. Following this is an analysis of the economic, political and social aspects of a free market for organs.
From the Paper "The current method of allocating transplant organs in the Unites States, under a system administered by the United Network for Organ Sharing (UNOS), involves a waiting list. In general, the sickest patients on this list will receive their organs the soonest. However, because the list is so long, most of the patients will die waiting. This situation has led to the advocacy of allowing a free market to develop for allocating transplant organs. The primary objective of this plan is to let supply and demand mechanisms determine who gets organs (and when), as a substitute for the current need-based approach. Throughout this discussion, the central characteristic of a successful alternative allocation method is considered to be a greater number of organs being made available to people in need, compared to the current waiting list approach."
Abstract This paper is written as report in reply to a school board's Request for Proposal (RFP) that was released to its educational researching and consulting program. The report is produced by the large urban school district somewhere in the northeastern United States, which is currently in the process of implementing a series of advanced placement and honors study courses for their core curriculum courses in three senior high schools. Prior to the district administrators feeling confident that they can indeed approve and eventually allocate the necessary funding for the proposed advanced placement and or honors study courses, the board's leaders have allocated funding to undergo a thorough planning study that will help facilitate and provide a clear picture of the overall process of implementing the new advanced placement and or honors study courses in the three district high schools. This proposal provides a hypothesis; a background that provides the school board with an understanding of the nature and scope of the advanced placement and/or honors courses; a statement of the issues and problems when implementing such courses in urban schools; a methodological section that provides details on the procedures proposed; analytic methods used; and the potential significance of the project. The paper includes a graph.
From the Paper "Urban schools present a particular challenge to school leadership. However, when educational leaders champion the diversity and commit themselves to serving the student bodies within the urban community, these schools have an opportunity to become both academic and social diamonds in the rough. These goldmines can offer new and positive opportunities. The school system through this program has decided to increase the amount of money spent per pupil and this offers an incentive for experienced teachers. ?In our large cities, the majority of young Americans end compulsory education in high schools that feel oppressive at worst and irrelevant at best, despite the well intentioned best efforts of the adults who serve them. If education is to be the practice of freedom, then we are not yet free, and some of us are freer than others.? (Jubb) Smaller but more challenging classes will encourage teachers to teach those disgruntled levels of students."
This paper is a literature review and a research proposal to study the way mining projects currently are valued and to demonstrate the need for changing this method.
Abstract This paper explains that capital allocation is extremely important to mining, and the efficiency and effectiveness with which this capital is allocated will be greatly affected by the valuation of a project. The author points out that determining the best method is not the purpose of this paper; rather, using a primary and secondary approach, the study will examine current practices, review the various financial principles and methods that are currently available, and derive ideas for solutions that are somewhat more in favorable. The paper demonstrates that both the commercial and the technical aspects that have to do with mining investments have always been very high risk; however, in recent years, new elements of political risk are being created by the United States, which is considering changes in some of the mining laws that will be more stringent, making mining even more economically risky. Tables and graphs.
Table of Contents
Introduction
Statement of the Problem
Purpose of the Study
Importance of the Study
Rationale for the Study
Overview of the Study
Review and Analysis of the Literature
Methodology
Data Analysis
From the Paper "Larger companies, naturally, are much more sophisticated in the ways that they analyze their capital budgets. Companies that have sales greater than 500 million often use combinations of all three of the DCF techniques that are available. Many of these companies also performed escalated dollar analyses and constant dollar analyses that depended not only on financing alternatives but also on time constraints. Companies also used even more advanced techniques in performing various valuations into mining projects, but this was not seen to be on a consistent basis. Some of these techniques included computer simulations on various investment activity similar to Monte Carlo analyses and a specific way of utilizing options pricing into valuing of copper properties."
