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11 – 20 of over 92000John C. Groth and Steven S. Byers
Focuses on understanding accounting and economic concepts, relationships and factors important as a basis for economic decisions that create value. Provides the background…
Abstract
Focuses on understanding accounting and economic concepts, relationships and factors important as a basis for economic decisions that create value. Provides the background essential for understanding the future papers in the series. Offers a review and develops perspectives useful to those with or without knowledge of accounting. Distinguishes between accounting and economic events, providing examples to support understanding of issues such as types of cost, relevant costs in economic analysis, economic contribution margin and break‐even, and basic concepts related to product pricing, and the relationship between risk, expected economic profits and value. Relates costs and risk factors that have an impact on value and addresses issues critical in decision making.
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Managers are constantly making decisions that affect profit. One ofthe decision‐making areas which is crucial to all managers concernsprofit planning. Attempts to show how…
Abstract
Managers are constantly making decisions that affect profit. One of the decision‐making areas which is crucial to all managers concerns profit planning. Attempts to show how cost‐volume‐profit (CVP) analysis, aided by the computer spreadsheet, can be applied to the practical profit planning situation in the hospitality industry. Paradoxically, CVP analysis is one of the most widely referred to techniques in managerial accounting, but all too often it is not used to its full potential in the operating environment. Aims at encouraging greater use of the CVP approach to hospitality profit planning.
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Lazhar Tlili, Chelbi Anis and Mokhles Bouazizi
This paper deals with a particular type of leasing contracts according to which an equipment is leased for free with the condition for the lessee to purchase a predetermined…
Abstract
Purpose
This paper deals with a particular type of leasing contracts according to which an equipment is leased for free with the condition for the lessee to purchase a predetermined minimum quantity of consumables during each leasing period. Maintenance actions are performed by the lessor and borne by him. Imperfect preventive maintenance is carried out every t time units throughout the leasing period. Minimal repairs are performed following equipment failures. At the end of the leasing period, an overhaul which restores the equipment to “as good as new” state is performed. The equipment is leased many times during its life cycle. The purpose of this paper is to determine the values of the decision variables for the lessor, which are the preventive maintenance (PM) period and the minimum quantity of consumables to be sold to ensure profit.
Design/methodology/approach
A mathematical model is developed to express the expected maintenance cost per time unit incurred by the lessor as well as his expected profit over the equipment life cycle. The optimal PM period minimizing the maintenance cost is determined first. Then, given the corresponding minimum maintenance cost, the minimum quantity of consumables (the lessor's break-even point) to be purchased by the lessee is computed. A numerical example and a sensitivity study are presented, and the obtained results are discussed.
Findings
The outcome of this work is supposed to help the lessors determining two key values to be included in each leasing contract, namely: (1) the periodicity according to which they will commit to perform preventive maintenance actions such that their average total cost of maintenance is minimized, (2) the minimum quantity of consumables that the lessee must commit to purchasing during the leasing period. This quantity must be between the break-even point and the maximum quantity associated with the capacity of the equipment.
Practical implications
Practically, the objective of this work is first to determine the optimal strategy to be adopted by the lessor in terms of effort relating to PM and second to determine the minimum quantity of consumables that the lessee must purchase during the leasing period such as profit is insured for the lessor.
Originality/value
This type of leasing (for free) has not been addressed in the literature particularly when considering maintenance strategies.
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Ismail Olaleke Fasanya, Temitope Festus Odudu and Oluwasegun Adekoya
This paper aims to model the relationship between oil price and six major agricultural commodity prices using monthly data from January 1997 to December 2016.
Abstract
Purpose
This paper aims to model the relationship between oil price and six major agricultural commodity prices using monthly data from January 1997 to December 2016.
Design/methodology/approach
The authors use both the linear autoregressive distributed lag by Pesaran et al. (2001) and the nonlinear autoregressive distributed lag by Shin et al. (2014), and they also account for structural breaks using the Bai and Perron (2003) test that allows for multiple structural changes in regression models.
Findings
These findings are discernible from the authors’ analyses. First, the linear analysis indicates a significant positive effect of oil prices on the agricultural commodity prices, which supports evidence on the non-neutrality hypothesis. Second, oil price asymmetries seem to matter more when dealing with agricultural commodity prices, except for groundnut. Third, it may be necessary to pre-test for structural breaks when modelling the relationship between oil price and agricultural prices regardless of the commodity being analysed. Fourth, the asymmetric effect for the agricultural commodity prices is non-neutral to oil prices, except for rice in the case of structural breaks.
Originality/value
This paper contributes to the on-going debate on the oil–agricultural commodity nexus using the recent technique of asymmetry and also considering the role structural breaks play in the relationship between oil price and agricultural commodity prices.
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Steve S. Byers, John C. Groth and Marilyn K. Wiley
Provides the conceptual structure and practical framework for analysing the effects which changes in operating cycle variables will have on economic value. Focuses on important…
Abstract
Provides the conceptual structure and practical framework for analysing the effects which changes in operating cycle variables will have on economic value. Focuses on important issues and techniques in analysing and managing raw materials, work in process, finished goods and accounts receivable. Addresses single and joint effects of changes in the operating cycle on additions to value. Illustrates the amplification effects of improvements in the operating cycle. Contains simplified sample analysis to allow one to focus on conceptual and practical issues rather than complex numbers.
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WHATEVER individuals may think of the miners' strike and Mr. Seargill's attitude in it, the fact remains that they reflect a momentous change in the direction of collective…
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WHATEVER individuals may think of the miners' strike and Mr. Seargill's attitude in it, the fact remains that they reflect a momentous change in the direction of collective bargaining: the initiative has moved from workers to management.
Stavros Arvanitis and Leticia Estevez
The main purpose of this chapter is to define the concept, scope and importance of a feasibility study when developing a new business venture. It also presents the main components…
Abstract
Purpose
The main purpose of this chapter is to define the concept, scope and importance of a feasibility study when developing a new business venture. It also presents the main components of a feasibility study by describing a feasibility study template.
Methodology/approach
A literature review was conducted on conceptual issues and practical aspects of the feasibility analysis and study by presenting a hypothetical case of study of a boutique hotel.
Findings
This chapter highlights the importance of both feasibility analysis and study, and the main reasons why all entrepreneurs should carry them out. It presents a simple template that shows the key components of a feasibility study and also a hypothetical case of study of a boutique hotel that helps in relating the concepts and ideas previously developed.
Practical implications
This chapter introduces both theoretical and practical approaches by presenting a model or template on how to develop the feasibility analysis and study. This template can be applied at any stage of assessment process of a business project.
Originality/value
The concept of a feasibility study is accompanied by a practical template and a case study. This approach contributes to a better understanding of the value and utility of feasibility analysis and study in assessing tourism business ventures.
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PROJECTS launched early in National Productivity Year are still producing useful results. One of the most commendable of these was the circulation of a questionnaire which reached…
Abstract
PROJECTS launched early in National Productivity Year are still producing useful results. One of the most commendable of these was the circulation of a questionnaire which reached manufacturing firms in Monmouthshire. It was the idea of No. 3 sub‐committee of the country's Productivity Study Group.
The article presents the “cost‐volume profit analysis (CVP)” for the hotel industry.
Abstract
The article presents the “cost‐volume profit analysis (CVP)” for the hotel industry.
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