Costing Systems and the Spare Capacity Conundrum: Avoiding the Death Spiral

We hear how firms have to become lean, eliminate non-value added activities and strive to maximise asset utilisation, but there are inevitably firms with excess capacity that need relevant information to manage the cost of the under utilisation of resources. In this paper we question whether cost system designers have been taking appropriate account of the capacity issue, and ask whether the costing systems employed are sufficiently adaptable for fluctuating levels of capacity utilisation. We note that the capacity issue has received diminishing attention in the literature since the 1960s, and identify the dangers of not identifying the cost of spare capacity. We demonstrate how improper cost system design or usage can draw the firm into the death spiral. This danger not only exists when moving into a recession but also when recovering and resuming growth. We describe two cases that demonstrate potential pitfalls and alternative approaches to the capacity issue. The manufacturing case is an SME with a traditional costing system that was hindering management‟s pricing and product mix decisions. Fortunately the death spiral was avoided as it was recognised that significant spare capacity was distorting costs and prices when the firm continued to base overhead absorption on budgeted production volumes. The service case relates to a large financial services company that implemented a complex activity based costing system and gained a much greater understanding of resource consumption and capacity utilisation, and hence established more effective cost control in their back office operations

The incidence and perceived managerial merit of customer accounting in New Zealand

Purpose – Two prior survey papers on the use and perceived merit of customer accounting practices, one in Australia and one in New Zealand, disclosed contrasting results with confusing elements. This survey replicates and extends the previous research to update and clarify our understanding of the use and perceived merit of Customer Accounting (CA) practices in New Zealand. Design/methodology/approach – A mail questionnaire survey was sent to 136 companies quoted on the New Zealand Stock Exchange, resulting in 44 useable responses (32.4%). Findings – This survey finds that mean scores for the usage and perceived merit of CA practices in New Zealand in 2009 are similar to those found in Australia in 2002, and much higher than those found in New Zealand in 2007. Also, a relationship between the use of activity-based costing (ABC) and the perceived merit of CA practices was found, but no relationship with actual CA usage. The research also found a strong positive relationship between the adoption of the customer concept of marketing management and the usage of customer profitability analysis at an individual customer level. Research limitations/implications – The survey method prevents follow-up questions and clarification of ambiguities, but the survey results point to several areas warranting further research. Originality/value – This survey provides academic researchers, teachers, and firms using, or considering the use of CA practices, improved understanding of the extent of current usage and perceived managerial merit of CA practices in New Zealand companies. Keywords: Customer Accounting (CA); Customer Profitability Analysis (CPA); Customer Lifetime Value (CLV); Customer Equity (CE); Customer concept; Marketing concept; New Zealand

The incidence and perceived managerial merit of customer accounting in New Zealand

Purpose - Two prior survey papers on the use and perceived merit of customer accounting (CA) practices, one in Australia and one in New Zealand (NZ), disclosed contrasting results with confusing elements. The purpose of this paper is to replicate and extend previous survey research in order to update and clarify our understanding of CA practices in NZ. Design/methodology/approach - Within a contingency theory framework, a mail questionnaire survey is used to measure the use and perceived merit of CA practices in NZ and investigate their relationship with six contingent factors: competitive strategy, market orientation, environmental uncertainty, costing methodology, company size and industrial sector. Findings - Mean CA usage and perceived merit scores in NZ in 2009 are much higher than was found in NZ in 2007 and similar to those found in Australia in 2002. A significant gulf between usage rates of historical and forward-looking CA measures is now found in NZ. There is strong evidence for a positive contingent relationship between the marketing concept of marketing management and both the use and perceived merit of historical CA measures. Also found is a significant positive relationship between the customer concept of marketing management and the use and perceived merit of customer profitability analysis at the individual customer level. Research limitations/implications - The survey method used prevents follow-up questions and clarification of ambiguities, but the survey results do provide new insights and potential avenues for further research. Originality/value - This survey provides researchers, teachers and firms using or considering using CA practices, with an improved understanding of current usage and perceived merit of CA practices in NZ companies

Freeze branding cattle

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Genetic improvement of meat quality and fertility using the national nucleus

Knowledge is power and the National Swine Registry (NSR) is the only source of complete, publicly available, genetic records on nucleus populations. NSR has offered STAGES \u27, a BLUP genetic improvement program with bio-economic indexes for over 17 years. NSR members submit information on 3 sow productivity traits and 3 postweaning performance traits and in return receive across-herd Expected Progeny Deviations (EPDs) for these traits along with indexes for Sow Productivity, Maternal Line (sow productivity and postweaning performance) and Terminal (postweaning traits only) to be used in genetic selection. Not only is this genetic information available to members but genetic values and trends for these traits are also available to any commercial producer or genetic advisor. This program has led NSR members to make substantial genetic improvement for these traits within all four breeds. In addition, this transparent system allows commercial producers to design programs and select animals that allow them the greatest potential for their situation. As the pork industry continues ro change, multiple pork chains are forming to meets distinct specifications desired by subsets of consumers. To continue to meet the demand of these dissimilar pork chains, differentiated genetic lines are necessary to provide products that match their specifications. In addition, as profit per pig continues to decline pork producers must be able to increase product sold per unit of investment. To facilitate this key profitability indicator, the fertility of breeding females must improve. To address these two key drivers in today\u27s pork industry, the NSR has updated their genetic improvement program in these two areas

Genetic Knock-Down of Hdac3 Does Not Modify Disease-Related Phenotypes in a Mouse Model of Huntington's Disease

Huntington's disease (HD) is an autosomal dominant progressive neurodegenerative disorder caused by an expansion of a CAG/polyglutamine repeat for which there are no disease modifying treatments. In recent years, transcriptional dysregulation has emerged as a pathogenic process that appears early in disease progression and has been recapitulated across multiple HD models. Altered histone acetylation has been proposed to underlie this transcriptional dysregulation and histone deacetylase (HDAC) inhibitors, such as suberoylanilide hydroxamic acid (SAHA), have been shown to improve polyglutamine-dependent phenotypes in numerous HD models. However potent pan-HDAC inhibitors such as SAHA display toxic side-effects. To better understand the mechanism underlying this potential therapeutic benefit and to dissociate the beneficial and toxic effects of SAHA, we set out to identify the specific HDAC(s) involved in this process. For this purpose, we are exploring the effect of the genetic reduction of specific HDACs on HD-related phenotypes in the R6/2 mouse model of HD. The study presented here focuses on HDAC3, which, as a class I HDAC, is one of the preferred targets of SAHA and is directly involved in histone deacetylation. To evaluate a potential benefit of Hdac3 genetic reduction in R6/2, we generated a mouse carrying a critical deletion in the Hdac3 gene. We confirmed that the complete knock-out of Hdac3 is embryonic lethal. To test the effects of HDAC3 inhibition, we used Hdac3+/− heterozygotes to reduce nuclear HDAC3 levels in R6/2 mice. We found that Hdac3 knock-down does not ameliorate physiological or behavioural phenotypes and has no effect on molecular changes including dysregulated transcripts. We conclude that HDAC3 should not be considered as the major mediator of the beneficial effect induced by SAHA and other HDAC inhibitors in HD

SP701-A-Growing and Harvesting Switchgrass for Ethanol Production in Tennessee

Switchgrass is a warm-season perennial grass native to North America. The plant can reach heights up to 10 feet with an extensive root system. Once established, switchgrass well-managed for biomass should have a productive life of 10-20 years. Within the stand, switchgrass is an extremely strong competitor. However, it is not considered an invasive plant. Switchgrass adapts well to a variety of soil and climatic conditions. It is most productive on moderately well to well-drained soils of medium fertility and a soil pH at 5.0 or above. The high cellulosic content of switchgrass makes it a favorable feedstock for ethanol production. It is anticipated that switchgrass can yield sufficient biomass to produce approximately 500 gallons of ethanol per acre. While the Tennessee Biofuels Initiative includes a demonstration plant to make ethanol from switchgrass, the market for switchgrass as an energy crop remains limited. Producers will likely need to be located within 30 to 50 miles of a cellulosic ethanol plant. Producing switchgrass for energy generally occurs under some form of contractual arrangement with the end-user. To reap potential benefits from using switchgrass for cellulosic ethanol production, the system of production must be profitable for farmers and energy producers, as well as cost effective for consumers

Social Interactions of Juvenile Brown Boobies at Sea as Observed with Animal-Borne Video Cameras

While social interactions play a crucial role on the development of young individuals, those of highly mobile juvenile birds in inaccessible environments are difficult to observe. In this study, we deployed miniaturised video recorders on juvenile brown boobies Sula leucogaster, which had been hand-fed beginning a few days after hatching, to examine how social interactions between tagged juveniles and other birds affected their flight and foraging behaviour. Juveniles flew longer with congeners, especially with adult birds, than solitarily. In addition, approximately 40% of foraging occurred close to aggregations of congeners and other species. Young seabirds voluntarily followed other birds, which may directly enhance their foraging success and improve foraging and flying skills during their developmental stage, or both

The MyD88+ phenotype is an adverse prognostic factor in epithelial ovarian cancer

The prognosis of epithelial ovarian cancer is poor in part due to the high frequency of chemoresistance. Recent evidence points to the Toll-like receptor-4 (TLR4), and particularly its adaptor protein MyD88, as one potential mediator of this resistance. This study aims to provide further evidence that MyD88 positive cancer cells are clinically significant, stem-like and reproducibly detectable for the purposes of prognostic stratification. Expression of TLR4 and MyD88 was assessed immunohistochemically in 198 paraffin-embedded ovarian tissues and in an embryonal carcinoma model of cancer stemness. In parallel, expression of TLR4 and MyD88 mRNA and regulatory microRNAs (miR-21 and miR-146a) was assessed, as well as in a series of chemosensitive and resistant cancer cells lines. Functional analysis of the pathway was assessed in chemoresistant SKOV-3 ovarian cancer cells. TLR4 and MyD88 expression can be reproducibly assessed via immunohistochemistry using a semi-quantitative scoring system. TLR4 expression was present in all ovarian epithelium (normal and neoplastic), whereas MyD88 was restricted to neoplastic cells, independent of tumour grade and associated with reduced progression-free and overall survival, in an immunohistological specific subset of serous carcinomas, p<0.05. MiR-21 and miR-146a expression was significantly increased in MyD88 negative cancers (p<0.05), indicating their participation in regulation. Significant alterations in MyD88 mRNA expression were observed between chemosensitive and chemoresistant cells and tissue. Knockdown of TLR4 in SKOV-3 ovarian cells recovered chemosensitivity. Knockdown of MyD88 alone did not. MyD88 expression was down-regulated in differentiated embryonal carcinoma (NTera2) cells, supporting the MyD88+ cancer stem cell hypothesis. Our findings demonstrate that expression of MyD88 is associated with significantly reduced patient survival and altered microRNA levels and suggest an intact/functioning TLR4/MyD88 pathway is required for acquisition of the chemoresistant phenotype. Ex vivo manipulation of ovarian cancer stem cell (CSC) differentiation can decrease MyD88 expression, providing a potentially valuable CSC model for ovarian cancer