• Health Policy and Management
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• v.10 no.4
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• pp.116-143
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• 2000

Considerable attention has been devoted in the accounting literature to identify the factors that cause or drive the costs of overhead activities. This paper extends recent cost driver research to the health care provider. In various case studies, it has been suggested that overhead costs are driven by volume and complexity variables. This paper investigates the significance of these variables in determining hospital overhead costs, how they are structurally related and how the cost impacts of these variables can be estimated in practice. This paper analyzes the determinants of hospital costs using the sample of South Korea hospitals for seven year during the period 1952－1997. The paper focuses on the extent to which hospital overhead costs depend on complexity, efficiency in addition to depending on more conventional volume based measures of hospital activity. The results of regression analysis suggest that volume and complexity factors positively and significantly affect overhead costs in the hospital industry. The results show that the complexity-related cost drivers strongly affected on the overhead costs in tile health care provider industry more than manufacturing industry which is mainly affected by volume-related cost drivers. That means each Industry may have different cost structures. Therefore it Is Important to find their proper cost structures and cost drivers and use them. Futhermore identification of overhead or indirect cost drivers is likely to be particularly useful in heath care. The identification of cost drivers can be of benefit to all health care stakeholders because these facilitates more efficient management of the national resources devoted to health care. While this study has documented that the level of service complexity is a significant determinant of hospital overhead costs, caution should be exercised in interpreting this as supportive of the cost accounting procedures associated with ABC. It is an open question whether even a well-designed ABC system will provide suitable proxies for marginal costs for decision making purposes.

• Health Policy and Management
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• v.14 no.1
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• pp.89-120
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• 2004

The purpose of this empirical study is to test hypotheses in order to identify the cost drivers that drive indirect costs in general hospitals in Korea. In various cases' studies, it has been suggested that overhead costs are driven by volume and complexity variables, how they are structurally related and how the cost impacts of these variables can be A unique feature of the research is the treatment of complexity as an endogenous variable. It is hypothesized that level of hospital complexity in terms of the number of services provided(i.e., “breath" complexity) and the intensity of individual estimated in practice. overhead services(ie., “depth" complexity) are simultaneous determined with the level of costs needed to support the complexity. Data used in this study were obtained from the Database of Korean Health Industry Development Institute, Health Insurance Review Agency and analyzed using simultaneous equation model, path model. The results found those volume and complexity variables are all statistically signi-ficance drivers of general hospital overhead costs. This study has documented that the level of service complexity is a significant determinant of hospital overhead costs, caution should be exercised in interpreting this as supportive of the cost accounting procedures associated with ABC. with ABC.

• International conference on construction engineering and project management
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• 2009.05a
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• pp.1100-1106
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• 2009

General contractors' overhead costs are increasing relative to direct costs. However, it is difficult to apply the traditional activity-based costing directly to the construction site overhead costing because the resource consumption rate per each activity is varied depending on the attributes of activities. The research develops a methodology of hybrid cost allocation system when resources are assigned to cost objects unlike the traditional activity-based costing. The study also develops a database program and demonstrates how it can be applied to the construction projects using a case study.

• Korean Journal of Construction Engineering and Management
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• v.22 no.3
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• pp.79-90
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• 2021

In domestic public construction, disputes are increasing due to differences among stakeholders regarding contract price adjustment. In particular, the actual cost-plus fee for overhead costs due to the schedule extension cannot be agreed upon at the administrative phase, and most of them seek judicial judgment. Thus, this study aims to propose a 'sufficiently satisfactory' alternative to reach an agreement before disputes in order to minimize disputes related to the calculation of additional overhead costs. To this end, this study proposes three alternatives based on the rate method. Firstly, when calculating additional overhead costs, it is not calculated as an actual cost-plus-fee method, but as a rate compared to direct labor costs among net direct costs. Secondly, the calculated indirect labor costs are compensated for up to the legal maximum of legal limit costs such as general management costs, profits and so on. Thirdly, it reflects overhead costs increased or decreased due to change orders. Risks were analyzed by collecting expert opinions on the proposed methods and applying actual cases. Finally, as a result of investigating the level of consensus for each stakeholder, it was confirmed that all stakeholders could agree regardless of the size of the company. The result of this study is expected to as a useful tool among stakeholders in the construction fields that can be able to easily agreed upon.

• Proceedings of the KIEE Conference
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• 2004.05b
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• pp.148-151
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• 2004

When we have been estimated construction costs, till now, we are used to costs accumulating method of each items based on standard labors rates. But there are some problems of its methods. Our governments are applied to a historical construction costs estimation system fur building construction and civil engineering works from January 2004. The electrical construction works are forecasted that applied to historical construction cost estimation systems. This paper is supposed to reasonable estimation methods of overhead costs and profits.

• Korean Journal of Construction Engineering and Management
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• v.19 no.5
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• pp.43-52
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• 2018

Generally, research on construction cost has been done mostly regarding its direct cost, thus model regarding indirect cost lacks attention. This research seeks to introduce a model to predict on-site overhead cost for apartment construction projects, which constitutes a big portion in Korean construction industry. We devised an equation of 9th degree via curve-fitting, using multiple on-site actual expense data, which can be used to calculate per-progress rate, per-day on-site overhead cost. We further show prospective usage of the model by applying it on construction projects sizing about 30 billion won. Regarding the fact that previous studies could not recognize pattern changes of a total on-site overhead cost, this model is worthy of its conveniency and thoroughness, as well as providing reasonal ground for its derivation in predicting on-site overhead cost of apartment construction projects.

• Nuclear Engineering and Technology
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• v.38 no.6
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• pp.561-574
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• 2006

This study presents the results of an economic analysis for a comparison of the single layer and double layer alternatives with respect to a HLW-repository. According to a cost analysis undertaken in the Korean case, the single layer option was the most economical alternative. The disposal unit cost was estimated to be 222 EUR/kgU. In order to estimate such a disposal cost, an estimation process was sought after the cost objects, cost drivers and economic indicators were taken into consideration. The disposal cost of spent fuel differs greatly from general product costs in the cost structure. Product costs consist of direct material costs and direct labor and manufacturing overhead costs, whereas the disposal cost is comprised of construction costs, operating costs and closure costs. In addition, the closure cost is required after a certain period of time elapses following the building of a repository.

• Korea Journal of Hospital Management
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• v.4 no.2
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• pp.354-368
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• 1999

This research aims to compare between regression and neural network in terms of the predictive ability of the overhead costs in hospitals. For this purpose, this research uses the number of out-patients and complex medical treatments as explaining variables. Thirty-one hospitals were used for the empirical test The test result shows that the regression model has a more predictive ability than the neural network.

• Journal of Electrical Engineering and Technology
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• v.9 no.4
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• pp.1248-1257
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• 2014

Overhead transmission lines are crucial components in power transmission systems. Well-designed maintenance strategy for overhead lines is required for power utilities to minimize operating costs, while improving the reliability of the power system. This paper presents a maintenance priority index (MPI) of overhead lines for a reliability centered approach. Proposed maintenance strategy is composed of a state index and importance indices, taking into account a transmission condition and importance in system reliability, respectively. The state index is used to determine the condition of overhead lines. On the other hand, the proposed importance indices indicate their criticality analysis in transmission system, by using a load effect index (LEI) and failure effect index (FEI). The proposed maintenance method using the MPI has been tested on an IEEE 9-bus system, and a numerical result demonstrates that our strategy is more cost effective than traditional maintenance strategies.

• Journal of the Korea Safety Management & Science
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• v.7 no.1
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• pp.127-135
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• 2005

In general one can find an enormous number of studies about the productivity of land, labor and capital, very little has been done so far to communicate about the productivity of corporate information creating and information-consuming resources in ways that are useful to business executives. In view of the enormous share of corporate spending on information resources it would be useful in planning, budgeting, as well as in performance evaluation to measure how information resources are used in creating EVA(economic value-added). The effectiveness in deploying information resources has potentially a greater effect on corporate financial performance than any other economic influence. That in because corporate executives have greater discretion in directing what their information management staffs will do than in setting the terms for materials purchases, employee compensation, taxes or interest rates. The expenses for information are mostly in the form of overhead costs. Because expenses for information are mostly overhead costs and not for costs of goods, the prudent decision-maker should have a wide array of discretionary options available for allocating this resource. This study is intended for analysis the factors that having effects on the enterprise information productivity and is to description the factor using a foreign enterprise case study.