In a traditional system of costing, the costs of services and products are not accurate as overhead costs are allocated through cost centers or departments. On the other hand, activity-based costing purports to costing technique in which products or services are assigned costs on the basis of their consumption of resources caused by activities and provides effective tool for activity based management system (ABMS). The cost assignment is done on specific activities like planning, design, engineering, production or dispatch and thereafter the activities in the value chain are associated with different products or services. The implementation of ABMS facilitates proper decision-making by management and result in improvement of business process in terms of effectiveness and efficiency. In other words, by the process of determination of the real cost of products and services by ABC methodology, it becomes easy to identify the products and services which are economically non-viable, break-even or economically viable. Eventually, the economic break-even point can be determined and thus it is possible to compare the different options and explore opportunities for cost control by strategic decision-making. Evidently, ABMS, in a business, endeavours to analyse the information base of activity-based costing and identifies activities in order to eliminate those which do not add to the useful value of the product and focus on those activities which contribute to useful value and support the improvement of product to satisfy the consumer demands. The paper attempts to examine the efficacy of activity-based management system in underground coal mine through case analysis of a selected operating coal mine in India. To determine the cost of mining, all activities in the mine are identified first. The available resources for the activities and actual consumption based on activity cost drivers have been determined by field investigation and analysis. The costs derived by ABC method and traditional system are compared and analysed for managerial decision-making. The case study unfolds non-value added activities andinadequate capacity of underground coal transportation entailing managerial action.
Keywords: Activity-based costing; activity-based management system; coal mining; activity cost driversRead more
As is well-known, hydrocarbons resources are finite and once extracted they are put to use and cannot be replaced. So, what do governments do when faced with geological data that tells them their resources might reach a peak in only a few years or worse, that they have already began to decline?Read more
The relationship between physico-mechanical properties of tuff and penetration rate of air percussion drilling was investigated during an exploratory well drilling work at Southern Johor Bahru.Read more
The paper describes the study carried out to determine the relationships between the amount of vibrations that happen inside the rock at the time of failure under tensile loading and different rock properties such as uniaxial compressive strength, uniaxial tensile strength, Young’s modulus, cohesion, angle of internal friction and density. It is then tried to interpret what are the factors that affect the vibrations and the time to failure. To capture the vibrations piezoelectric sensors are used which capture the acoustic signals and convert them into electric signals. With the help of Picoscope, it was then possible to recover the acoustic signals. At the time of failure, the peak voltage (h) was recorded along with the span of time the rock took to fail (w). The h/w ratio was then obtained and used to relate it with different rock properties. h/w ratio is the measure of how much vibrations happen inside the rock and for what amount of time. It was observed to be highly related to uni axial tensile strength, angle of internal friction and rock density.
Keywords: Rock properties, tensile loading, rock vibrations, piezoelectric sensors, PicoScope.Read more