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  • 24 Sep 2018
  • Research & Ideas

How Cost Accounting is Improving Healthcare in Rural Haiti

Medical records at a healthcare clinic in Lascahobas, Haiti. Ryan McBain A few years ago, the Boston-based nonprofit health care organization Partners in Health (PIH) set out to quantify the cost of primary care for its... View Details
Keywords: by Carmen Nobel; Health
  • August 1988 (Revised November 1988)
  • Case

Texas Instruments: Cost of Quality (A)

By: Robert S. Kaplan
Texas Instruments implements a Cost of Quality (COQ) system as part of a company-wide "Total Quality Thrust." After several years of operation, group management questions whether or not the COQ system should be updated to make it more useful in identifying areas for... View Details
Keywords: Quality; Performance Improvement
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Kaplan, Robert S. "Texas Instruments: Cost of Quality (A)." Harvard Business School Case 189-029, August 1988. (Revised November 1988.)
  • May–June 1991
  • Article

Profit Priorities from Activity-Based Costing

By: Robin Cooper and Robert S. Kaplan
Keywords: Activity Based Costing and Management; Profit
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Cooper, Robin, and Robert S. Kaplan. "Profit Priorities from Activity-Based Costing." Harvard Business Review 69, no. 3 (May–June 1991): 130–135.
  • December 1993 (Revised April 1994)
  • Case

Polaroid: Managing Environmental Responsibilities and Their Costs

Costs relating to companies' impact on the environment are increasing at a dramatic rate. Thus, managing, measuring, and reporting of these costs has become an important issue for managers. Accounting for environmental responsibilities is one of the largest and most... View Details
Keywords: Cost; Corporate Social Responsibility and Impact; Accounting; Environmental Sustainability
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Barth, Mary E., Marc J. Epstein, and Richard D.R. Stark. "Polaroid: Managing Environmental Responsibilities and Their Costs." Harvard Business School Case 194-052, December 1993. (Revised April 1994.)
  • October 1994
  • Case

Yokohama Corporation, Ltd. (B): Cost Management System

Illustrates the budget planning process at a Japanese firm. Also describes a highly traditional cost accounting system, and shows how variances are used for performance measurement. View Details
Keywords: Cost Accounting; Performance Evaluation; Budgets and Budgeting; Japan
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Cooper, Robin, and Takeo Yoshikawa. "Yokohama Corporation, Ltd. (B): Cost Management System." Harvard Business School Case 195-108, October 1994.
  • Article

High Cost of Liquidity

By: Amar Bhidé
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Bhidé, Amar. "High Cost of Liquidity." Financial Times (December 13, 1994).
  • 13 Jun 2018
  • Sharpening Your Skills

That Costs HOW Much?

graphicola Price is important to consumers not just because it determines whether they can afford to purchase that purse or patio set. The cost of an item sets the buyer's expectations as to how the product or service will perform and... View Details
Keywords: by Sean Silverthorne; Retail
  • 2023
  • Article

Comparison of COVID-19 Hospitalization Costs across Care Pathways: A Patient-level Time-driven Activity-based Costing Analysis in a Brazilian Hospital

By: Ricardo Bertoglio Cardoso, Miriam Allein Zago Marcolino, Milena Soriano Marcolino, Camila Felix Fortis, Leila Beltrami Moreira, Ana Paula Coutinho, Nadine Oliveira Clausell, Junaid Nabi, Robert S. Kaplan, Ana Paula Beck da Silva Etges and Carisi Anne Polanczyk
The COVID-19 pandemic raised awareness of the need to better understand where and how patient-level costs are incurred in health care organizations. This study used time-driven activity-based costing to estimate COVID-19 patient-level hospital costs in a Brazilian... View Details
Keywords: Health Care and Treatment; Cost; Health Industry; Brazil
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Cardoso, Ricardo Bertoglio, Miriam Allein Zago Marcolino, Milena Soriano Marcolino, Camila Felix Fortis, Leila Beltrami Moreira, Ana Paula Coutinho, Nadine Oliveira Clausell, Junaid Nabi, Robert S. Kaplan, Ana Paula Beck da Silva Etges, and Carisi Anne Polanczyk. "Comparison of COVID-19 Hospitalization Costs across Care Pathways: A Patient-level Time-driven Activity-based Costing Analysis in a Brazilian Hospital." BMC Health Services Research 23, no. 198 (2023).
  • February 1996 (Revised November 2003)
  • Case

Indianapolis: Activity-Based Costing of City Services (A)

By: Robert S. Kaplan
A new administration in the City of Indianapolis is initially determined to privatize many municipal services. Before taking this action, however, the city managers want to know the current cost of performing these services with the municipal workers. Existing... View Details
Keywords: Cost Management; Public Sector; Activity Based Costing and Management; Service Delivery; Privatization; City; Indianapolis
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Kaplan, Robert S. "Indianapolis: Activity-Based Costing of City Services (A)." Harvard Business School Case 196-115, February 1996. (Revised November 2003.)
  • July–August 2013
  • Article

The Costs of Racial 'Color Blindness'

By: Michael I. Norton and Evan P. Apfelbaum
The article looks at research on people's attitudes and behaviors with respect to noticing and referring to a person's race. It explains the 2013 study, in which participants played a "Guess Who?" style game of asking yes-or-no questions about a group of faces... View Details
Keywords: Prejudice and Bias; Behavior; Race; Attitudes
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Norton, Michael I., and Evan P. Apfelbaum. "The Costs of Racial 'Color Blindness'." Harvard Business Review 91, nos. 7/8 (July–August 2013): 22.
  • November 2009
  • Background Note

Business Valuation and the Cost of Capital

By: Timothy A. Luehrman
This note is an introduction to the cost of capital as used in discounted cash flow valuation analyses. The note covers basic financial economic principles and practical problems encountered in calculating the cost of capital, especially WACC. It concludes with... View Details
Keywords: Economics; Capital Budgeting; Cash Flow; Cost of Capital; Valuation
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Luehrman, Timothy A. "Business Valuation and the Cost of Capital." Harvard Business School Background Note 210-037, November 2009.
  • July 1978
  • Article

On the Cost of Deposit Insurance When There Are Surveillance Costs

By: Robert C. Merton
Keywords: Cost; Insurance; Banking Industry
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Merton, Robert C. "On the Cost of Deposit Insurance When There Are Surveillance Costs." Journal of Business 51, no. 3 (July 1978): 439–452. (Chapter 20 in Continuous-Time Finance.)
  • May 2016 (Revised August 2022)
  • Case

RegionFly: Cutting Costs in the Airline Industry

By: Susanna Gallani and Eva Labro
RegionFly is a small, private airline specializing in ultra-premium services. Founded shortly after the "Golden Age of airline travel," RegionFly's financial performance had been strong for several decades. More recently, however, the results have taken a downward... View Details
Keywords: Recession; Downsizing; Profitability; Cost Management; Profit; Luxury; Competitive Strategy; Mergers and Acquisitions; Business Divisions; Logistics; Decision Making; Strategic Planning; Air Transportation Industry
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Gallani, Susanna, and Eva Labro. "RegionFly: Cutting Costs in the Airline Industry." Harvard Business School Case 116-047, May 2016. (Revised August 2022.)
  • 04 Nov 2013
  • Research & Ideas

The Real Cost of Bribery

that launch anticorruption efforts grow their businesses more slowly than firms that don't, especially in regions where bribery is the expected norm. “If you think of the cost [of bribery] as just fines and regulatory actions, you're... View Details
Keywords: by Carmen Nobel
  • September 2001
  • Background Note

Accounting for Computer Software Development Costs

By: Robert S. Kaplan and Tatiana Sandino
Summarizes the debate on accounting for computer software development costs. Provides a historical description of the development of standards on accounting of computer software development costs, both in the United States and internationally. Describes how, after much... View Details
Keywords: Accounting; Information Technology Industry; Accounting Industry; United States
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Kaplan, Robert S., and Tatiana Sandino. "Accounting for Computer Software Development Costs." Harvard Business School Background Note 102-034, September 2001.
  • 2010
  • Chapter

Cost Structure Patterns in the Asset Management Industry

By: Dennis Campbell and Frances X. Frei
This chapter examines patterns in the cost structure of asset management firms and establishes two important trends in cost behavior. First, when revenues are growing, "indirect" costs related to sales, distribution, marketing, personnel, technology, and occupancy are... View Details
Keywords: Financial Crisis; Asset Management; Cost Management; Financial Services Industry
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Campbell, Dennis, and Frances X. Frei. "Cost Structure Patterns in the Asset Management Industry." Chap. 8 in Operational Control in Asset Management: Processes and Costs, edited by Michael Pinedo, 154–168. Denmark: SimCorp StrategyLab, 2010.
  • August 1994
  • Case

Komatsu Ltd. (B): Profit Planning and Product Costing

Describes Komatsu's profit planning and product costing systems. Komatsu can boast a high degree of employee dedication to achieving its profit plan. Also explores the logic behind the design of a new cost system at Komatsu that is less accurate at the product level... View Details
Keywords: Cost Accounting; Cost Management; Profit
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Cooper, Robin. "Komatsu Ltd. (B): Profit Planning and Product Costing." Harvard Business School Case 195-061, August 1994.
  • 07 Oct 2014
  • Working Paper Summaries

Lifting the Veil: The Benefits of Cost Transparency

Keywords: by Bhavya Mohan, Ryan W. Buell & Leslie K. John; Retail
  • Article

Comparative Costs of Advanced Proton and Photon Radiation Therapies: Lessons from Time-driven Activity-based Costing in Head and Neck Cancer

By: Nikhil G. Thaker, Steven J. Frank and Thomas W. Feeley
Time-driven activity-based costing (TDABC) is an innovative costing tool in healthcare that can be used to directly compare the true cost of competing technologies over the full care cycle. Rather than only comparing therapeutic effectiveness over a limited number of... View Details
Keywords: Head And Neck Cancer; IMRT; Proton Therapy; Time-Driven ABC; Information Technology; Activity Based Costing and Management; Medical Specialties
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Thaker, Nikhil G., Steven J. Frank, and Thomas W. Feeley. "Comparative Costs of Advanced Proton and Photon Radiation Therapies: Lessons from Time-driven Activity-based Costing in Head and Neck Cancer." Journal of Comparative Effectiveness Research 4, no. 4 (2015): 297–301.
  • Research Summary

Cost Management and Management Control Systems in Hospitals

By: V.G. Narayanan

 Hospitals tend not to have very good cost accounting and control systems. More broadly,  there is enormous opportunity for managing costs and aligning incentives in the health care industry. I am studying how cost accounting methods can be used to... View Details

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