• Title/Summary/Keyword: operating expenses

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The Improved Device of Seoul Subway Fare System (서울 지하철의 운임제도 개선방안)

  • Lee, Tai-Sik;Jun, Young-Joon;Kwon, Ou-Chul;Chung, Jong-Ky;Lee, Dong-Wook
    • Journal of the Korean Society for Railway
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    • v.9 no.2 s.33
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    • pp.200-205
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    • 2006
  • Subway widely used as a major mean of public transportation both at home and abroad contributes to ease chronic traffic congestion in cities. However, subway operating expense is expected to increase continuously because subway requires vast amount of money at the construction stage, huge sum of maintenance cost is spent during operation, and passenger needs for more convenient facilities is increasing. on the contrary to enormous operating expenses, fare that is occupying most of operating income doesn't come up to its prime cost causing chronic operating deficit. It is urgent to prepare fare system improvement measures to increase operating income in order to resolve financial difficulty of a subway operating organization. Therefore, the current study analyzed present condition and problems of subway fare system, and suggested improvement measures such as improvement of fare adjustment procedure, improvement of free-ride system, diversification of ticket, etc.

Evaluation of Information Technology Impact on State-owned Commercial Banks' Efficiency: The Case of Bangladesh

  • BEGUM, Shakera;BATEN, Md. Azizul;ALI, Rahmat
    • Asian Journal of Business Environment
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    • v.12 no.1
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    • pp.1-9
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    • 2022
  • Purpose: This study measures the effect of Information Technology (IT) on both cost and profit efficiency of State-owned Commercial Banks (SOCBs) in Bangladesh. Research design, data and methodology: Yearly Non-IT and IT data are collected from the annual report of SOCBs of Bangladesh from 2008 to 2017. Variable Return to Scale (VRS) cost Data Envelopment Analysis (DEA) and Profit DEA are employed to measure the efficiency of SOCBs and Ordinary Least Square (OLS) is used to investigate the impacts of ICT components on operating cost and profit efficiency for SOCBs. Results: The average cost efficiency (74.4%) was noticed higher than the average profit efficiency (20.6%) for SOCBs. SOCBs were more affordable and less profitable for both cost and profit efficiency. Rupali bank was the most cost efficient while Sonali bank was the most profit efficient. IT Investment and IT personnel expenses were positively significant for cost efficiency. IT income, IT personnel, IT personnel expenses, ATM expenses, and Credit card expenses were negatively significant for profit efficiency. Conclusion: The further studies can combine DEA with machine learning algorithms to study the impact of IT on banks' performances. The results could aid government to remove the hindrance of progress in Bangladesh.

A Study on the cost allocation method of the operating room in the hospital (수술실의 원가배부기준 설정연구)

  • Kim, Hwi-Jung;Jung, Key-Sun;Choi, Sung-Woo
    • Korea Journal of Hospital Management
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    • v.8 no.1
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    • pp.135-164
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    • 2003
  • The operating room is the major facility that costs the highest investment per unit area in a hospital. It requires commitment of hospital resources such as manpower, equipments and material. The quantity of these resources committed actually differs from one type of operation to another. Because of this, it is not an easy task to allocate the operating cost to individual clinical departments that share the operating room. A practical way to do so may be to collect and add the operating costs incurred by each clinical department and charge the net cost to the account of the corresponding clinical department. It has been customary to allocate the cost of the operating room to the account of each individual department on the basis of the ratio of the number of operations of the department or the total revenue by each operating room. In an attempt to set up more rational cost allocation method than the customary method, this study proposes a new cost allocation method that calls for itemizing the operation cost into its constituent expenses in detail and adding them up for the operating cost incurred by each individual department. For comparison of the new method with the conventional method, the operating room in the main building of hospital A near Seoul is chosen as a study object. It is selected because it is the biggest operating room in hospital A and most of operations in this hospital are conducted in this room. For this study the one-month operation record performed in January 2001 in this operating room is analyzed to allocate the per-month operation cost to six clinical departments that used this operating room; the departments of general surgery, orthopedic surgery, neuro-surgery, dental surgery, urology, and obstetrics & gynecology. In the new method(or method 1), each operation cost is categorized into three major expenses; personnel expense, material expense, and overhead expense and is allocated into the account of the clinical department that used the operating room. The method 1 shows that, among the total one-month operating cost of 814,054 thousand wons in this hospital, 163,714 thousand won is allocated to GS, 335,084 thousand won to as, 202,772 thousand won to NS, 42,265 thousand won to uno, 33,423 thousand won to OB/GY, and 36.796 thousand won to DS. The allocation of the operating cost to six departments by the new method is quite different from that by the conventional method. According to one conventional allocation method based on the ratio of the number of operations of a department to the total number of operations in the operating room(method 2 hereafter), 329,692 thousand won are allocated to GS, 262,125 thousand won to as, 87,104 thousand won to NS, 59,426 thousand won to URO, 51.285 thousand won to OB/GY, and 24,422 thousand won to DS. According to the other conventional allocation method based on the ratio of the revenue of a department(method 3 hereafter), 148,158 thousand won are allocated to GS, 272,708 thousand won to as, 268.638 thousand won to NS, 45,587 thousand won to uno, 51.285 thousand won to OB/GY, and 27.678 thousand won to DS. As can be noted from these results, the cost allocation to six departments by method 1 is strikingly different from those by method 2 and method 3. The operating cost allocated to GS by method 2 is about twice by method 1. Method 3 makes allocations of the operating cost to individual departments very similarly as method 1. However, there are still discrepancies between the two methods. In particular the cost allocations to OB/GY by the two methods have roughly 53.4% discrepancy. The conventional methods 2 and 3 fail to take into account properly the fact that the average time spent for the operation is different and dependent on the clinical department, whether or not to use expensive clinical material dictate the operating cost, and there is difference between the official operating cost and the actual operating cost. This is why the conventional methods turn out to be inappropriate as the operating cost allocation methods. In conclusion, the new method here may be laborious and cause a complexity in bookkeeping because it requires detailed bookkeeping of the operation cost by its constituent expenses and also by individual clinical department, treating each department as an independent accounting unit. But the method is worth adopting because it will allow the concerned hospital to estimate the operating cost as accurately as practicable. The cost data used in this study such as personnel expense, material cost, overhead cost may not be correct ones. Therefore, the operating cost estimated in the main text may not be the same as the actual cost. Also, the study is focused on the case of only hospital A, which is hardly claimed to represent the hospitals across the nation. In spite of these deficiencies, this study is noteworthy from the standpoint that it proposes a practical allocation method of the operating cost to each individual clinical department.

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A Study on Estimating Construction Equipment Annual Standard Operating Hours (건설기계 연간표준가동시간 산정에 관한 연구)

  • Lee, Joong-Seok;Huh, Young-Ki
    • Proceedings of the Korean Institute Of Construction Engineering and Management
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    • 2007.11a
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    • pp.219-224
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    • 2007
  • As use of construction equipment has been increasing continuingly, the proportion of equipment expense to the total construction cost has become higher. However, there is a difference between the equipment expenses section in 'Poom-Sam' and practical data, because 'Poom-sam' does not consider non-working days due to weather conditions, legal holidays and management conditions. Therefore, 'Poom-Sam' does not present a reasonable standard for estimating construction equipment expenses. In this study, to estimate realistic construction equipment operating hours, firstly, construction equipment was classified according to work, and weather conditions, in which each work could not be executed, were established. Then, weather data on Seoul and Busan(2004${\sim}$2006) and legal holidays were analyzed to suggest annual standard operating hours. The annual standard operating hours of earthmoving & excavating, compaction, and drilling equipment was estimated to be 1,430 hours, and lifting equipment, concrete paving equipment, asphalt paving equipment, concrete equipment, and crushing & conveying equipment were estimated to be 2,124 hours, l,156hours, 1,188hours, 1,688hours, and 2,152hours respectively.

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A Study on the Analysis of Management Characteristics of Coastal Port Freight Transportation Business Using Panel Regression Analysis (패널회귀분석을 이용한 내항 화물운송사업체의 경영특성 분석에 관한 연구)

  • Kim, Suk;Park, Sung-Hoon;Yang, Tae-Hyeon;Yeo, Gi-Tae
    • Journal of Digital Convergence
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    • v.17 no.3
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    • pp.79-92
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    • 2019
  • This study analyzes the effects of freight transportation income, capital, asset, non-operating expenses, and debt ratio on the debts of inner port freight transportation businesses through the GLS of panel regression analysis and the estimation of fixed effects model. The factors and hypotheses were established through a theoretical background review, and the financial statement and profit and loss data of inner port freight transportation businesses for 10 years from 2006 to 2015 were analyzed. The results showed that assets had positive effects on debts, and negative effects on capital, non-operating expenses, and debt ratio, but no effect on freight transportation income. This result empirically demonstrates the tendency of inner port freight transportation businesses to secure assets by increasing debts, creation of debt reduction leverage effect using non-operating expenses such as interest expenses through bank borrowing, and the adoption of management characteristics and financial operation method to lower the debt ratio by reducing capital more than debts. In future studies, it is necessary to analyze coastal port freight transportation business by industry (oil tankers, cargo ships, and barge ships), and regions such as East, West and South sea.

The Influence on Enterprise Value of R&D Costs of KOSDAQ pharmaceutical companies (코스닥 제약기업의 연구개발비 무형자산화 비중이 기업가치에 미치는 영향)

  • Jo, Young-Ran;Lee, Sang-Won
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.20 no.11
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    • pp.487-493
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    • 2019
  • This study examines the ratio of R&D expenses in intangible assets for pharmaceutical companies, and determines whether these expenses affect the firm value among companies listed on the KOSDAQ. The research subjects included annual R&D expenses of 39 pharmaceutical companies listed on the KOSDAQ between 2011 and 2017. The survey was achieved via "Panel Data Model" with "Tobin Q" as an independent variable, and the ratio of R&D expenses in intangible as a dependent variable. Results of the study conclude that the ratio of R&D expenses in intangible assets of KOSDAQ pharmaceutical companies negatively influence the Tobin Q (Enterprise Value). A large proportion of intangible assets indicates increased R & D investment, and the operating profit is likely to be low due to the high debt ratio, thereby negatively impacting the enterprise value. This study further investigates whether the existing researches are based on researches that identify the total value of R & D expenditure. Results determine a significant relationship between enterprise value and R & D expenditure.

A study on actual condition and improvement plan of computer specialty and aptitude study in elementary schools of city and farm (도시와 농촌지역 초등학교 컴퓨터 특기.적성교육의 실태 비교 및 개선 방안 연구)

  • Lee, Hyung-Ho;Lee, Jae-In
    • 한국정보교육학회:학술대회논문집
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    • 2010.08a
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    • pp.169-177
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    • 2010
  • This study is to make a comparison with actual condition on the computer specialty and aptitude for elementary school of city and farm with questionnairing and to hit with improvement plan. They have several difference from supplying teachers, bankrolling educational expenses but several points of sameness on requiring professional ability, operating study and training, limiting the receiving. Accordingly, if leading the quality improvement of the computer specialty and aptitude by forming stable employing mood, operating various programs, bankrolling educational expenses, extending study and training opportunity in elementary school, students will get opportunities to develope their ability and aptitude.

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A Study on the Management Efficiency Effect Factor of Korean Ocean Carriers

  • Hong, Sog-Min;Ahn, Ki-Myung
    • Journal of Navigation and Port Research
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    • v.44 no.2
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    • pp.119-127
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    • 2020
  • In this study, the current state of management efficiency of ocean carriers in Korea and the factors affecting them were analyzed. The purpose of this research is to enhance global competitiveness of ocean carriers by presenting suggestions that can improve management efficiency based on the analysis results. The measurement of management efficiency was made using the DEA model. The results of testing the adequacy of the input and output variables used are as follows. Appropriate inputs are total assets, cost of goods sold, charter expenses, sales and general management expenses, and interest expenses. Appropriate variables are sales, operating income, and operating cash flow. According to the analysis results of the DEA model by these variables, inefficient carriers (78%) are nearly four times more than efficient carriers(22%). However, container carriers have the most improved management efficiency compared to 2016 and 2017. According to the panel regression analysis, the charter rate has the greatest negative impact on efficiency (CRS), and the debt rate has a significant negative impact. Thus, it appears that reducing the charter size and the debt-to-sale rate facilitate improvement of the management efficiency of ocean carriers. Additionally, the pre-sales tax return rate, value added rate, total asset turnover rate, and the scale variable and interest coverage rate have a positive (+) effect. Thus ocean carriers should restore their global competitiveness by improving management efficiency by securing stable cargoes increasing sales profitability from the cost management perspective, increasing productivity, and enhancing the efficiency of their total assets through efficient fleet management.

Analysis of BSC Adoption Effect by KOSPI listed Companies : Focus on Major Financial Ratios and Investment Scale (KOSPI 상장기업의 업종별 BSC 도입효과 분석 : 주요재무 비율 및 투자규모 중심으로)

  • Kim, Ju Eun
    • Korean Management Science Review
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    • v.34 no.3
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    • pp.15-41
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    • 2017
  • The purpose of this study is to analyze the effects of the BSCs of 642 firms excluding the financial and insurance companies listed on KOSPI. The analysis of financial performance through analysis of major financial ratios between BSC and non-BSC firms is compared with the input of human and material resources for business growth. We will promote the spread of BSC and examine the areas differentiated performance improvement. The analytical categories are manufacturing, service, wholesale and retail, and information and communications, which are 2,136 business years out of 2,378 final analytical samples. The results of the analysis are as follows. As a result of the analysis, among the four industries analyzed, the industries that showed the best performance were manufacturing. In the case of service industry, growth and activity were lower than those of non-adoption (NA) companies, but the operating margin was significantly different from manufacturing. However, market value was higher than that of NA companies, and R&D expenditures and advertising expenses were significantly higher than NA firms. On the other hand, there was no significant difference in profitability between the BSC and NA firms, but the market value was very significant. EPS is 5.22 times, BPS is 5.64 times, PBR is 1.3 times, and EVA is 35 times higher. In addition, R&D expenditure and advertising expenditure are more than twice as high as those of NA. In the case of the service industry, there is no significant difference in the growth performance from the NA firms. Activity indicators, BSC introduced companies are three times lower than both the total assets turnover and the capital turnover rate. The operating profit margin was high at 45.8% for introduced companies and 37.2% for non-introduced companies. In market value analysis, only BPS was 1.68 times higher. On the other hand, investment in welfare expenses is 0.2% of total assets, which is relatively low compared to NA firms. However, research and development expenses and advertising expenses are 2.1% and 1.02% of total assets, respectively, but they are relatively lower than those of NA firms. Unlike the manufacturing and service industries, wholesale and retail trade was significantly higher than the NA firms in terms of sales growth and total assets growth rate. In terms of market value, EPS and BPS were significantly higher, but the benefits, R&D expenditures, and advertising expenses were lower than those of NA firms. The information and communication industry showed lower level of performance than the NA firms in all indicators except cash liquidity, BPS, and EVA.

Relationship between Net working capital and Cash flows in General Hospitals, Hospitals (병원의 현금흐름 종류가 순운전자본에 미치는 영향)

  • Jung, Yong-Mo;Ha, Au-Hyun
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.18 no.6
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    • pp.312-318
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    • 2017
  • This study calculated the cash flow using the financial information by fiscal year for 25 general hospitals and 23 hospitals, and analyzed the relationship between cash flow and net working capital. The analysis results showed that 73.3% of general hospitals and 83.3% of hospitals did not secure funds required for operating activities by fiscal year. The cash flow types that affect net working capital were expenses not involving cash outflows and changes in borrowings in general hospitals, and expenses not involving cash outflows and income not involving cash inflows and changes in borrowings in hospitals. However, in case of shortage of funds required for operating activities, at general hospital, due to expenses not involving cash outflows being high and income not involving cash inflows being low and resulting in increased borrowing, at hospital, due to expenses not involving cash outflows being high and resulting in increased borrowing. Therefore, for the stability of cash flow in management activities, the adequacy and relevance of the expenses not involving cash outflows need to be reviewed, and it will be necessary to review the appropriate internal policy measures to systematically and rationally manage cash flow in consideration of cash flows.