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Integrating Activity-Based Costing with Economic Value Added
Tandung Huynh,
Guangming Gong,
Anhtuan Nguyen
Issue:
Volume 2, Issue 3, June 2013
Pages:
34-40
Received:
19 May 2013
Published:
10 June 2013
Abstract: Activity-Based Costing (ABC) was developed in the mid 1980s by Kaplan and it has been applied very popular in developed countries with obvious advantages. Although ABC system has more advantages than traditional costing (TC) system, but in today’s competitive economic environment it has not met fulfilled provision of sufficient information for decision-making, especially single ABC method ignores capital cost. The lack of capital cost is the reason why some products have inaccurate product costs and as results of that they have profit under ABC method but when capital cost is charged to those products, they cause a loss because they consume high invest fund. Imprecise information provided by single ABC method to managers is the reason why managers make inaccurate decisions. How to overcome this limitation of ABC? This paper researches on the integration of ABC with Economic Value Added (EVA™) as one way to overcome its limitation and innovation management accounting. Based on the data provided by Dong Su Company, this paper calculated profits of two customer groups using the new methodology (EVA-ABC) and also the old methodology (single ABC) to show how vague or inaccurate is the results you get when you use the old methodology and how accurate is the results you get when using the new methodology. The calculation showed that under EVA-ABC group 1 generates the value (13%) for this company but group 2 reduces the value of the business and destroy its capital (-8%). However under the single ABC method, the calculation showed that both two customer groups create profits for Dong Su with profit rate are 20% and 4% respectively which was incorrect.
Abstract: Activity-Based Costing (ABC) was developed in the mid 1980s by Kaplan and it has been applied very popular in developed countries with obvious advantages. Although ABC system has more advantages than traditional costing (TC) system, but in today’s competitive economic environment it has not met fulfilled provision of sufficient information for deci...
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Is Negotiation a Threat to Zimbabwean Investment Deals? an Analysis of Essar and Green Fuel Investments
Issue:
Volume 2, Issue 3, June 2013
Pages:
41-49
Received:
8 April 2013
Published:
10 June 2013
Abstract: Purpose: The purpose of this paper is to provide an overview of the Negotiation structures in Zimbabwe, ad-dressing the extent to which negotiation mechanisms may have been a contributory factor to the recent negotiated govern-ment deals with Essar and Green Fuel Chisumbanje projects which have taken so long to take off than as anticipated. Design/Methodology/Approach: The study adopted a qualitative research design because it provided flexibility and afforded the researcher the opportunity to conduct an in-depth research. Case studies of Essar and Green Fuel investments were conducted. Findings: The findings suggest that there were no effective stakeholder consultations before the FDI deal with Essar was signed. It appears as though negotiators were in a hurry to sign the agreement before doing a thorough analysis. The case of Green Fuel, also demonstrated the absence of wider stakeholder consultation before the implementation of the project. There was evidence of lack of transparency on the part of negotiations. Research Limitations/Implications: The main limitation of the study lies with a lack of complex analysis undertaken to support the findings. Practical Implications: The findings from the study suggest that Government policy is never implemented Social Implications: Governments across the world pay lip service when it comes to implementing Government projects. As a result the public suffer due to poor service delivery. Originality/Value: The paper is original as it is the first attempt to discuss government negotiation deals that do not materialise according to the planned time frame.
Abstract: Purpose: The purpose of this paper is to provide an overview of the Negotiation structures in Zimbabwe, ad-dressing the extent to which negotiation mechanisms may have been a contributory factor to the recent negotiated govern-ment deals with Essar and Green Fuel Chisumbanje projects which have taken so long to take off than as anticipated. Design/...
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“Intervention of Destination Management Organization’s In Tourist Destinations for Branding, Image Building and Competitiveness – A Conducive Model for Karnataka”
Issue:
Volume 2, Issue 3, June 2013
Pages:
50-56
Received:
4 March 2013
Published:
30 June 2013
Abstract: Destination Management Organization (DMO) is a technical body which is supported by the Host Government. DMO’s initiate a standardized procedure to market a destination by attracting right quantum of tourist, to synergizes activities on tourist destinations. DMOs are also perceived as marketing organizations designed to bring buyers (visitors) in contact with marketers (providers of tourism products and services). DMOs can flourish with Destination marketing as a proactive function. Visitor centered approach to the economic and cultural development of a destination will balance & integrate the interests of visitors, service providers and the community. Core DMO functions are to market the destination as attractive to visitors (i.e., generating prospects) through marketing and promotional activities like, branding, advertising, media production, etc. Providing suppliers with market intelligence plus cost effective access to distribution channels are other functions. The interest also will be on providing some level of support to the visitor at the destination and the future of DMO’s will be as a dominant and most influential body to manage a Destination evolving into a "total destination management system". The DMO will become the ultimate source of strategic intelligence and grow as a communication centre for a destination. The research identifies to impart value creation in a networked environment through DMOs in order to enhance a new paradigm for competent destination management and thereby to build on the professional competency through DMOs to foresee the future challenges. Thereby, the DMO community will be sought after by Govt. institutions & large corporations for information and leadership.
Abstract: Destination Management Organization (DMO) is a technical body which is supported by the Host Government. DMO’s initiate a standardized procedure to market a destination by attracting right quantum of tourist, to synergizes activities on tourist destinations. DMOs are also perceived as marketing organizations designed to bring buyers (visitors) in c...
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The Co-Production of Value in an Art Market: Exploring Service Relationships
Erik A. Borg,
Lars Vigerland
Issue:
Volume 2, Issue 3, June 2013
Pages:
57-69
Received:
17 May 2013
Published:
10 July 2013
Abstract: The purpose of this research is to analyze service dominated relationships and differences in characteristics of these relationships within arts marketing. The appreciation of art is seen as a service and is intertwined with the creation of company identity and thus a subtle kind of marketing, whether this is a conscious or non-conscious strategy from a company perspective. Companies invest in art in order to enhance their image, and establish network relationship with art firms. The data is collected from the Swedish non-profit art market of public and private organizations with focus on Stockholm, an art market place as well as a prime site for company head quarters. The data is analyzed with multivariate correspondence analysis (MCA), which is also known as geometric data analysis (GDA). This method enables analysis of relationships as well as overall characteristics of the participants in these relationships: a part of service as well as a creation of company identity, thus marketing. The research has shown that the service encounter within arts is enhanced within relationships between key actors that can be considered co-producers of art and that multivariate correspondence analysis is a helpful tool to identify these relationships and company characteristics in a structured manner. The methodology is generating visual pictures of the art market that cooperates with profit making ordinary companies in different industries. The graph that is produced with MCA is a visualization of what can be regarded as a map of the companies with connections to the nonprofit art market, whether these connections are formal and a part of regular business activities or informal and relatively weak.
Abstract: The purpose of this research is to analyze service dominated relationships and differences in characteristics of these relationships within arts marketing. The appreciation of art is seen as a service and is intertwined with the creation of company identity and thus a subtle kind of marketing, whether this is a conscious or non-conscious strategy f...
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