Cost modelling of the product mix from mining operations using the activity-based costing approach

Cremonese, Dennis Travagini; Tomi, Giorgio de; Neves, Manoel Rodrigues

doi:10.1590/0370-44672015690137

Cited by 7 publications

(5 citation statements)

References 10 publications

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“…However, as with other costing methods, ABC is not exempt from its limiting characteristics, which include: (I) the subjectivity in the relationship of fixed costs of activities with products through their drivers; (II) the little interest in the dichotomy of fixed and variable costs, simply appropriating these expenses to products and/or services, so that in doing so, the method would calculate high unit costs in a production period below the normal capacity of the company and (III) the method does not consider in its analysis advanced measurement concepts, such as opportunity cost and capital equivalence, hence, the costing objects are measured in a way that does not express their economic values (Cremonese;De Tomi;Neves, 2016;Kampf et al, 2016;Kastanioti et al, 2016;Pokorná, 2016;Stasova;Bajus, 2015).…”

Section: Activity-based Costingmentioning

confidence: 99%

Tools for cost management

Silva,

Leite

2024

Revista PO: R. Eletr. de Eng. de Produção e Correlatas

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This article aims to provide an overview of the literature in which cost assessment methods are currently used, and their characteristics and limitations are also pointed out. To achieve the proposed objectives, a Systematic Literature Review (RSL) was conducted. It was possible to identify the tools discussed in the bibliographic portfolio studied, namely: life cycle costing, target costing, the total cost of ownership, activity-based costing, variable costing, and mathematical models, as well as the difficulties in implementing these tools in different application contexts. It has also been noted that multiple tools are often employed in integrated methodologies to mitigate the inherent limitations of individual models when treated in isolation. The significance of this article resides in its contribution to the discourse on the evolution of cost management tools and their application within integrated approaches, particularly in addressing the typical challenges encountered in emerging business models.

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Section: Activity-based Costingmentioning

confidence: 99%

Tools for cost management

Silva,

Leite

2024

Revista PO: R. Eletr. de Eng. de Produção e Correlatas

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“…The selling price of loss-making or low-profit items can be improved by lowering production or improving their quality by adding economical processes. The study of Cremonese et al (2016) indicates that an activity-based costing (ABC) approach is efficient for analyzing the selling costs of mining product mix. Steinberg and De Tomi (2010) observed in the most developed nations, the grades of mineral/ore have fallen due to protracted mining operations.…”

Section: Commercial Issues In Miningmentioning

confidence: 99%

Impact of commercial, financial and corporate affairs on operational excellence of the Indian mining industry

Mishra¹,

Panigrahi

Samantaray

2022

IJLSS

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Purpose This study aims to identify the impact of commercial issues (CIs), financial issues (FIs) and corporate affairs (CAs) on operational excellence (OE) of the mining industry. Design/methodology/approach A purposive sample of size 321 was collected from Indian mining executives with more than ten years of exposure to the mining field. Factors are identified and confirmed with the use of confirmatory factor analysis. The structural equation modeling technique was then applied to understand the unique as well as the complex relationships between FI, CI, CA and OE. Findings The results indicate that all three issues, CI, FI and CA, have an influence on OE in the Indian mining industry. Among the variables of the issues considered in this study, marketing products and size and quality of products (from CI); scale of economies (from FI); risk management (from CA); and transportation and machine operation (from OE) are the highest influencing variables. Research limitations/implications This study has its limitations in sampling, the timing of sample collection and their mode. The samples were collected from only massively deposited large mines. Practical implications Business managers of the mining industry will be more vigilant and aware of those indirect variables such as marketing products, size and quality of products, scale of economies and risk management, which can influence OE apart from major influencing variables such as transportation and machine operations and production scheduling. Originality/value To the best of the authors’ knowledge, this is the first study in the mining industry to evaluate the impact of these three issues on OE. The originality of this research lies in testing the CI, FI and CA of the mining industry with OE, which is completely new to this field.

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“…According to [14], realistic distribution of the actual costs of each product to a mining company is one of the main challenges. The assessment of each product's profitability may be impaired when incorrect information is provided and affect strategic decisions.…”

Section: Fuel Consumption In Iron Ore Miningmentioning

confidence: 99%

Analysis of the Energy Efficiency of Diesel Oil Consumption in the Brazilian Iron Ore Mining Company

Fernandes¹,

Leal²,

Figueiredo³

et al. 2018

JPEE

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This paper aims to evaluate the diesel oil consumption between 2008 and 2015 in the production of iron ore in Brazil, creating correlations between energy intensity (production), economy and checking the impact of fuel prices on the commodity. During the analyzed period, the years 2008-2009 indicated economic crises, which interfered in the price and the commercialization of iron ore products. The physical intensity was 0.2% higher than the economic intensity. In the period from 2010 to 2014, economic activity remained more stable, with a decreasing trend, mainly due to the increase of iron ore prices. The physical intensity is much higher than the economic intensity influenced by the expansion of the Chinese economy. The year of 2014 indicated the end of the high iron ore price cycle and the beginning of supply and demand stabilization with consequent reduction in prices. In 2015, the market entered the stabilization phase, with a continuous reduction in unit production costs and transportation logistics. There was an abrupt change due to the strong increase of the economic intensity due to the fall of the international prices of iron ore. The diesel oil consumption plays a vital role in the scenario of cost reduction in iron ore production and a deeper analysis must be done in order to discover some options to change the energy matrix.

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Cost modelling of the product mix from mining operations using the activity-based costing approach

Cited by 7 publications

References 10 publications

Tools for cost management

Tools for cost management

Impact of commercial, financial and corporate affairs on operational excellence of the Indian mining industry

Analysis of the Energy Efficiency of Diesel Oil Consumption in the Brazilian Iron Ore Mining Company

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