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1 – 10 of over 6000Xichan Chen, Feng Chen, Xing Liu and Mei Zhao
The study aims to investigate the impact of industrial robot application on corporate labor cost stickiness and labor investment efficiency in China.
Abstract
Purpose
The study aims to investigate the impact of industrial robot application on corporate labor cost stickiness and labor investment efficiency in China.
Design/methodology/approach
Using the textual analysis to construct firm-level industrial robot application indicators in China, we implement the methodology in Anderson et al. (2003) and Banker and Byzalov (2014) to estimate cost stickiness.
Findings
We argue that the industrial robot uses in China would increase firms’ labor adjustment costs by increasing the employment scale and upgrading the employment structure (i.e. by employing more high-skilled and high-educated labor). Consistent with our expectation through the channel of labor adjustment costs, the use of robotics increases firms’ labor cost stickiness. We further find that the positive impact is more significant among labor-intensive industries, and among state-owned enterprises with lower labor adjustment flexibility. We also find that industrial robot uses do not decrease the labor cost stickiness even when robots are more likely to substitute labor. Finally, we find that industrial robot uses significantly facilitate more efficient hiring practices by mitigating overinvestment in labor (i.e. over-hiring).
Originality/value
Against the backdrop of intelligent manufacturing worldwide, our study sheds new insight into the effects of new technologies on corporate labor cost behavior in developing countries. We contribute to scant studies examining how robotics, AI adoption or other automation technologies (e.g. specialized machinery, software, etc.) affect corporate cost behavior.
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Krishna Chauhan, Antti Peltokorpi, Rita Lavikka and Olli Seppänen
Prefabricated products are continually entering the building construction market; yet, the decision to use prefabricated products in a construction project is based mostly on…
Abstract
Purpose
Prefabricated products are continually entering the building construction market; yet, the decision to use prefabricated products in a construction project is based mostly on personal preferences and the evaluation of direct costs. Researchers and practitioners have debated appropriate measurement systems for evaluating the impacts of prefabricated products and for comparing them with conventional on-site construction practices. The more advanced, cost–benefit approach to evaluating prefabricated products often inspires controversy because it may generate inaccurate results when converting non-monetary effects into costs. As prefabrication may affect multiple organisations and product subsystems, the method used to decide on production methods should consider multiple direct and indirect impacts, including nonmonetary ones. Thus, this study aims to develop a multi-criteria method to evaluate both the monetary and non-monetary impacts of prefabrication solutions to facilitate decision-making on whether to use prefabricated products.
Design/methodology/approach
Drawing upon a literature review, this research suggests a multi-criteria method that combines the choosing-by-advantage approach with a cost–benefit analysis. The method was presented for validation in focus group discussions and tested in a case involving a prefabricated bathroom.
Findings
The analysis indicates that the method helps a project’s stakeholders communicate about the relative merits of prefabrication and conventional construction while facilitating the final decision of whether to use prefabrication.
Originality/value
This research contributes a method of evaluating the monetary and non-monetary impacts of prefabricated products. The research underlines the need to evaluate the diverse benefits and sacrifices that stakeholder face when considering production methods in construction.
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Jason Porter and Teresa Stephenson
This classroom activity helps students tie together the concepts of absorption costing for inventory, selling and administrative (SA) cost calculations, and sales price decisions…
Abstract
This classroom activity helps students tie together the concepts of absorption costing for inventory, selling and administrative (SA) cost calculations, and sales price decisions. It shows students how all costs fit together and are used to make business and pricing decisions, synthesizing discrete sections of most managerial or cost accounting books into a complete process. The activity is designed to be run in one 75-minute class session using an Excel template that allows students to focus on business decisions and less on the mechanics of completing calculations. The seven segments of the activity have students calculate target cost, allocate items of overhead into production and service departments, calculate absorption product cost, allocate SA to the production departments, determine the full cost, evaluate product viability, and calculate target price. At the end of the activity, students better understand how all these cost items fit together in a manufacturing setting.
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Babajide Oyewo, Mohammad Alta'any, Kolawole Adeyemi ALo and Negroes Tembo Dube
This study aims to investigate four internal (organisational structure, quality of information technology, business strategy and market orientation) and two external (competition…
Abstract
Purpose
This study aims to investigate four internal (organisational structure, quality of information technology, business strategy and market orientation) and two external (competition intensity and perceived environmental uncertainty) contextual factors affecting the use of production planning and control accounting techniques (PPC), as well as the impact of PPC usage on organisational competitiveness.
Design/methodology/approach
Seven major PPC techniques were investigated, namely: attribute costing, lifecycle costing, quality costing, target costing, value-chain costing, activity-based costing and activity-based management. By deploying a multi-informant strategy, a structured questionnaire was used to gather survey data from 129 senior accounting, finance and production personnel of publicly quoted manufacturing companies in Nigeria.
Findings
The results, using structural equation modelling, show that market orientation is the strongest determinant of PPC usage. The inability of competition intensity and perceived environmental uncertainty to notably affect PPC usage suggests that external environmental pressure to use PPC is weak. Although PPC can engender organisational competitiveness, their interactive usage yields optimal results.
Originality/value
The study contributes to knowledge by: (i) presenting evidence that although PPC techniques can engender organisational competitiveness, it is their interactive usage that yields optimal results; (ii) empirically demonstrating that contextual factors influence PPC usage in line with the contingency theory; and (iii) validating the diffusion of innovation theory that organisations will typically deploy PPC techniques because of their relative advantage of improving organisational competitiveness.
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This paper aims to explore how accounting is fostering neoliberal citizenship through the participants of Australia’s National Disability Insurance Scheme (NDIS). More…
Abstract
Purpose
This paper aims to explore how accounting is fostering neoliberal citizenship through the participants of Australia’s National Disability Insurance Scheme (NDIS). More specifically, this paper aims to understand how accounting discourse and the management accounting technique of budgeting, when intertwined with automated administrative processes of the NDIS, are giving rise to a pastoral form of power that directs people’s behaviour toward certain ends.
Design/methodology/approach
Publicly available data has been crafted into an autoethnographic case study of one fictitious person’s experiences with the NDIS – Mina. Mina is an amalgam created from material submitted to the Joint Parliamentary Standing Committee on the NDIS. Mina’s experiences are then analysed through the lens of Foucault’s concept of pastoral power to explore how accounting has contributed to marketising and digitising public disability services.
Findings
Accounting rhetoric appears to be a central part of rationalising the decision to shift to individualised disability funding. Those receiving payments are treated as self-governable, financially responsible subjects and are therefore expected to have knowledge of management accounting techniques and budgeting. However, NDIS’s strong reliance on the accounting concepts of funds, budgets, cost and price is limiting people’s autonomy and subjecting them to intervention and control.
Originality/value
This paper addresses calls to explore the interplay between accounting and current disability policies. The analysis shows that incorporating accounting into the NDIS’s algorithms serves to conceal the underlying ideology of the programs, subtly driving behaviours towards neoliberal objectives. Further, this research extends the Foucauldian accounting literature by revealing the contribution of accounting to reinforcing the authority of digital pastors in contemporary times.
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Rouhollah Khakpour, Ahmad Ebrahimi and Soroosh Saghiri
This paper aims to propose a stepwise method to improve the sustainability of manufacturing processes.
Abstract
Purpose
This paper aims to propose a stepwise method to improve the sustainability of manufacturing processes.
Design/methodology/approach
The proposed approach is based on an extensive literature review and research around the environmental, economic and social pillars of sustainability in manufacturing firms. Considering the lean approach, the manufacturing processes are mapped in a value stream and analyzed through the extensive identified sustainability criteria.
Findings
The findings reveal the consumption and waste of natural and nonrenewable resources, through going beyond the existing boundaries and focusing on relevant derived production pieces and tracing to their origins. The findings also present the effect of the time value of money on sustainability by using the cost–time profile as a sustainability criterion. This research finds out the employees’ impacts on sustainability improvement through an effective focus on technical, cultural and personal aspects.
Practical implications
The research outcomes provide operations managers and decision-makers in the field of sustainability with a practical platform to comprehend and assess the factors contributing to the manufacturing process sustainability and to plan relevant corrective actions accordingly.
Originality/value
The extended view of sustainability criteria in this research as well as its visual-analytical approach will help practitioners to assess and improve sustainability in their operations in a more holistic way.
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Siraj A. Bhayo, Nimra Gul Pathan, Ghulam Abbas, Narandar Kumar and Nazeer Ahmed
After completion of the case study, the students will be able to define and compute equivalent units of production, apply management accounting procedures for manufacturing…
Abstract
Learning outcomes
After completion of the case study, the students will be able to define and compute equivalent units of production, apply management accounting procedures for manufacturing businesses (Furqani Sugar Mills), calculate product cost and track product cost flows and prepare process cost summary using the weighted average method. By studying this case, learners will gain insights into the challenges and financial complexities faced by a sugar mill and how strategic decisions and economic analysis can impact the sustainability and profitability of such businesses.
Case overview/synopsis
This case study explained the problem Mr Zoraiz, chief financial officer (CFO) of Furqani Sugar Mill, was facing. The problems started in the month of November 2020. Mill’s owner Mr Jabbar asked him for suggestions that employees should not be laid off. So he was analysing and estimating the cost of production when increasing production. He was focusing on cost reduction in process or increasing production, and utilization of resources efficiently and effectively. This case study focused on the market segment of the sugar industry for process costing. Furqani Sugar Mill, founded in 1992 in Pakistan (Company Document), had a noble mission to improve the lives of local peasants by producing sugar and molasses. Pakistan heavily relied on agribusiness, particularly sugar production, which contributed significantly to manufacturing. However, Furqani Sugar Mill faced a dire situation despite its vital role. During the sugarcane season, it struggled due to a shortage of raw materials, primarily sugarcane. Zoraiz, the CFO, grappled with running the mill below total capacity in recent years due to two significant issues: government-fixed sugar prices and limited sugarcane supply from local farmers. The high cost of sugarcane hindered Zoraiz’s desire to operate at total capacity. Zoraiz, Furqani’s CFO, must decide what he can do so that the mill can operate at its total capacity. The future of Furqani Sugar Mill hung in the balance as Zoraiz navigated complex financial decisions while striving to uphold the mill’s legacy and commitment to the local community.
Complexity academic level
This case study is suitable for teaching in several modules, notably managerial accounting and control systems, management accounting decision-making and cost and management accounting. Specifically, it covers performance management and process costing in management accounts. It is appropriate for teaching at the undergraduate and postgraduate levels.
Supplementary materials
Teaching notes are available for educators only.
Subject code
CSS 1: Accounting and finance.
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Mahdi Salehi and Reza Khodabandeh Oghaz
This study aims to examine blockchain's effect on the accounting profession. In other words, this study seeks to answer whether blockchain can affect the accounting profession.
Abstract
Purpose
This study aims to examine blockchain's effect on the accounting profession. In other words, this study seeks to answer whether blockchain can affect the accounting profession.
Design/methodology/approach
The statistical population of this study comprises two groups. The first group includes accountants and external auditors working for Iranian audit firms, and the second group consists of accounting professors. Finally, 743 participants are selected as the research sample using the Cochran sample selection method. In this study, partial least square tests are used to examine the effect of the independent variable on dependent variables.
Findings
The results of this study demonstrate that blockchain has a positive and significant effect on the payroll system, risk management and financial systems. Moreover, the results indicate that blockchain does not affect the audit process.
Originality/value
As no research has yet examined the effect of blockchain on the accounting profession in Iran, the results of this study can provide the public with helpful information and add to the relevant literature.
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Elham Yousefi, Alireza Ahmadian Fard Fini and Santhosh Loganathan
This study aims to develop a production-oriented approach for optimal mass-customisation of floor panel layouts in cross-laminated timber (CLT) buildings. The study enables…
Abstract
Purpose
This study aims to develop a production-oriented approach for optimal mass-customisation of floor panel layouts in cross-laminated timber (CLT) buildings. The study enables meeting building clients’ unique floor plan requirements at an optimal cost and simultaneously enhances manufacturers’ profit by minimising material and manufacturing process waste.
Design/methodology/approach
The present research uses a hybrid approach consisting of field data collection, mathematical modelling, development of a Genetic Algorithm (GA) and scenario analysis. Field data includes engineered timber production information, design data and building code requirements. The study adopts the Flexible Demand Assignment (FDA) technique to formulate a mathematical model for optimising the design of mass timber buildings and employs GA to identify optimal production solutions. Scenario analysis is performed to validate model outputs.
Findings
The proposed model successfully determines the load-bearing wall placement and building spans and specifications of floor panels that result in optimal production efficiency and the desired architectural layout. The results indicate that buildings made of a single category of thickness of panels but customised in various lengths to suit building layout are the most profitable scenario for CLT manufacturers and are a cost-effective option for clients.
Originality/value
The originality of the present study lies in its mathematical and model-driven approach towards implementing mass customisation in multi-storey buildings. The proposed model has been developed and validated based on a comprehensive set of real-world data and constraints.
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Rohit Raj, Vimal Kumar, Ankesh Mittal, Priyanka Verma, Kuei-Kuei Lai and Arpit Singh
This study aims to identify and prioritize the key practices and strategies for effective global sourcing and supply chain management (SCM).
Abstract
Purpose
This study aims to identify and prioritize the key practices and strategies for effective global sourcing and supply chain management (SCM).
Design/methodology/approach
The study uses a combination of Pareto analysis and multi-objective optimization based on ratio analysis research methodology to analyze and establish the relationships among the identified key practices and strategies. Pareto analysis enables organization to prioritize organizational efforts and resources by focusing on the most critical factors.
Findings
The study shows that the “eco-friendly sourcing strategy”, “lean manufacturing” and “tool cost analysis” are the top critical practices and strategy variables for global sourcing and SCM, whereas the “risk management”, “procurement strategy” and “leverage digital solutions” are the critical practices and strategy variables.
Research limitations/implications
The findings of this research can also assist organizations in making informed decisions to optimize their global sourcing and supply chain operations.
Originality/value
By using these methods, this research paper gives valuable insights into the critical practices and strategies that can enhance efficiency, mitigate risks and drive success in global sourcing and SCM. The subjects and elements this study identified will serve as a framework and suggestions for further theoretical investigation and real-world implementations.
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