The Main Determinants of the Use of the Cost Accounting System in Portuguese Local Government

This paper explores the main determinants of the use of the cost accounting system (CAS) in Portuguese local government (PLG). Regression analysis is used to study the fit of a model of accounting changes in PLG, focused on cost accounting systems oriented to activities and outputs. Based on survey data gathered from PLG, we have found that the use of information in decision-making and external reporting is still a mirage. We obtain evidence about the influence of the internal organizational context (especially the lack of support and difficulties in the CAS implementation) in the use for internal purposes, while the institutional environment (like external pressures to implement the CAS) appears to be more deterministic of the external use. Results strengthen the function of external reporting to legitimate the organization’s activities to external stakeholders. On the other hand, some control variables (like political competition, usefulness and experience) also evidence some explanatory power in the model. Some mixed results were found that appeal to further research in the future. Our empirical results contribute to understand the importance of interconnecting the contingency and institutional approaches to gain a clear picture of cost accounting changes in the public sector.

Determinantes da adopção e desenvolvimento do Sistema de Contabilidade de Custos nos municípios Portugueses

The present study envisages to analyse and perceive change within the Portuguese local governments’ accounting information system. This change has occurred in recent years due to the development of the Cost Accounting System (CAS). Are there divergences between those that adopted and those that did not the CAS? As of today, to what extent is the CAS implemented? What factors do determine the level of development of the CAS amongst Portuguese local governments? This study has analysed several factors like the current legal framework, the local governments’ size, the financial independence and the level of political competitiveness. The empirical analysis focus upon the results as obtained by means of questionnaire which was applied to all the Portuguese Local Government (308). Although one may consider that its development is rather shallow, evidence unfolds that about 48% of the respondents have already adopted the CAS. It highlights that the pressure exerted by the current legal framework, namely the POCAL (Plano Oficial de Contabilidade das Autarquias Locais – Local Government Accounting Official Plan), the NLFL (Nova Lei das Finanças Locais – Local Finances New Law) and the RGTAL (Regime Geral de Taxas das Autarquias Locais – Local Government General Regime of Taxes), justifies that most of the local governments has adopted the new system of control and accounting information in recent years.The importance of information stemming from the CAS, thus bettering and refining the decision making process, is consistent with the positive evolution of this system, in the short-run. The institutions’ size as well as the level of financial independence and political competitiveness may also be pondered as most significant variables within this empirical analysis.

A creative solution for rapid and inexpensive model-making in product design processes

Rapid prototyping (RP) is an approach for automatically building a physical object through solid freeform fabrication. Nowadays, RP has become a vital aspect of most product development processes, due to the significant competitive advantages it offers compared to traditional manual model making. Even in academic environments, it is important to be able to quickly create accurate physical representations of concept solutions. Some of these can be used for simple visual validation, while others can be employed for ergonomic assessment by potential users or even for physical testing. However, the cost of traditional RP methods prevents their use in most academic environments on a regular basis, and even for very preliminary prototypes in many small companies. That results in delaying the first physical prototypes to later stages, or creating very rough mock-ups which are not as useful as they could be. In this paper we propose an approach for rapid and inexpensive model-making, which was developed in an academic context, and which can be employed for a variety of objects.

The internationally standardized process of public accounting: the perspective of different stakeholders in Portugal

New Public Management (NPM) led to great pressures for to introduce and adapt businesslike accounting in the public sector (Hood, 1995; Lapsley, 2008; Lapsley et al., 2009), specially the transition from cash basis to accrual-based accounting. In consequence, since the last 20 years we assist to a movement towards internationally standardized of public sector accounting that led to the publication of 32 International Public Sector Accounting Standards (IPSAS) for all public sector entities from national central governments to local governments (IFAC, 2008). These standards are accrual-basis and they emphasize the balance sheet approach, the fair value measurement and the revenue-expense approach (Hints, 2007). The main innovations are associated with the use of the balance sheet approach and the fair value measurement because, traditionally, public accounting systems are mainly focused on the revenue-expense approach and on historical cost valuation (Oulasvirta, 2014).

SUPPLIER INVOLVEMENT IN NEW PRODUCT DEVELOPMENT: A CASE STUDY FROM THE SEMICONDUCTOR INDUSTRY

Global competition requires that the companies adapt themselves to technological changes rapidly, develop new products, reduce the cost, shorten the time to market, and increase the quality. In this context, supplier involvement in New Product Development (NPD) is determinant for a company to respond to the requirements of the increasingly dynamic markets. The main purpose of the paper is to demonstrate the importance of supplier involvement in NPD, buyer-supplier relationships and their effects on buyer’s NPD process, highlighting the benefits of supplier involvement, the barriers, the strategic aspects and industry aspects. These issues are addressed with a case study from the semiconductor industry. Besides helping to understand NPD in the semiconductor industry, the contribution and fi ndings of this work are clear: the results achieved confirm the findings of studies referred in the literature review, and confirm that the semiconductor industry sector requires a closer and more complex relationship structure with suppliers, given the specificities and challenges of the sector, such as rapid technological changes, permanent innovation, global competition, reduction of cost and time-to-market cycle, increased capacity, among other. The main contribution of the paper to the scientific literature and to managers is the better understanding of the buyer-supplier relationships in NPD in the semiconductor industry.

Integrating environmental and economic life cycle analysis in product development: a material selection case study

Purpose Achieving sustainability by rethinking products, services and strategies is an enormous challenge currently laid upon the economic sector, in which materials selection plays a critical role. In this context, the present work describes an environmental and economic life cycle analysis of a structural product, comparing two possible material alternatives. The product chosen is a storage tank, presently manufactured in stainless steel (SST) or in a glass fibre reinforced polymer composite (CST). The overall goal of the study is to identify environmental and economic strong and weak points related to the life cycle of the two material alternatives. The consequential win-win or trade-off situations will be identified via a Life Cycle Assessment/Life Cycle Costing (LCA/LCC) integrated model. Methods The LCA/LCC integrated model used consists in applying the LCA methodology to the product system, incorporating, in parallel, its results into the LCC study, namely those of the Life Cycle Inventory (LCI) and the Life Cycle Impact Assessment (LCIA). Results In both the SST and CST systems the most significant life cycle phase is the raw materials production, in which the most significant environmental burdens correspond to the Fossil fuels and Respiratory inorganics categories. The LCA/LCC integrated analysis shows that the CST has globally a preferable environmental and economic profile, as its impacts are lower than those of the SST in all life cycle stages. Both the internal and external costs are lower, the former resulting mainly from the composite material being significantly less expensive than stainless steel. This therefore represents a full win-win situation. As a consequence, the study clearly indicates that using a thermoset composite material to manufacture storage tanks is environmentally and economically desirable. However, it was also evident that the environmental performance of the CST could be improved by altering its End-of-Life stage. Conclusions The results of the present work provide enlightening insights into the synergies between the environmental and the economic performance of a structural product made with alternative materials. Further, they provide conclusive evidence to support the integration of environmental and economic life cycle analysis in the product development processes of a manufacturing company, or in some cases even in its procurement practices.

The quest for a sustainable product: An environmental study of tyre recyclates

The main objective of the present study is to assess the environmental advantages of substituting aluminium for a polymer composite in the manufacture of a structural product (a frame to be used as a support for solar panels). The composite was made of polypropylene and a recycled tyres’ rubber granulate. Analysis of different composite formulations was performed, to assess the variation of the environmental impact with the percentage of rubber granulate incorporation. The results demonstrate that the decision on which of the two systems (aluminium or composite) has the best life cycle performance is strongly dependent on the End-of Life (EoL) stage of the composite frame. When the EoL is deposition in a landfill, the aluminium frame performs globally better than its composite counterpart. However, when it is incineration with energy recovery or recycling, the composite frame is environmentally preferable. The raw material production stage was found to be responsible for most of the impacts in the two frame systems. In that context, it was shown that various benefits can accrue in several environmental impact categories by recycling rubber tyres and using the resulting materials. This is in a significant part also due to the recycling of the steel in the tyres. The present work illustrates how it is possible to minimize the overall environmental impact of consumer products through the adequate selection of their constitutive materials in the design stage. Additionally it demonstrates how an adequate EoL planning can be an important issue when developing a sustainable product, since it can highly influence its overall life cycle performance.

Organizational and accounting change within the context of the environmental agenda: evidence from Portugal

Purpose – The purpose of this paper is to explore the process of organizational change undergone by a large Portuguese business group within the context of the environmental agenda and the role of accounting as a mechanism for change. Design/methodology/approach – The paper reports the results of a case study conducted between 2006 and 2009. Information was obtained from semi-structured interviews and secondary sources. Organizational changes were analyzed using Laughlin’s model in order to identify which category reflected most of the changes introduced to address environmental matters. Findings – This paper offers evidence that change is not a homogeneous phenomenon. Additionally, it confirms previous studies’ findings which found that accounting did not play a significant role in the process of organizational change within the context of the environmental agenda. Originality/value – This paper seeks to complement the research in this area by integrating observations from a case study into an existing model of levels of organizational change according to how a Portuguese business group incorporated environmental issues into its processes, policies and corporate culture.

A creative solution for rapid and inexpensive model-making in product design processes

Innovative Developments in Virtual and Physical Prototyping

Accounting and the “Doctor-Manager Relationship”

The adoption of the “new public management” in the hospital sector brought about greater presence and power to professional managers in hospitals, thus increasing the risk of conflict in the doctor-manager relationship. Aiming to enrich the discussion on the factors that could be the bases for this conflict and considering the role of accounting, the study presented here corresponds, basically, to what we call “content analysis” of qualitative studies. The results demonstrate that the Portuguese doctors as the sample studied accept, in essence, the principles of enterprise management and recognize the use of accounting information in the scope of their functions as long as they are called to participate as legitimate actors, and authorities respect their desires to preserve a practice which they consider of quality.

The international harmonization process of public accounting in Portugal: the perspective of different stakeholders

This paper investigates the reform of public accounting in Portugal through the IPSAS adoption highlighting the perception of different stakeholders. Two competing theories (NPM and the institutional theory) are used to understand public accounting changes within the Portuguese context. In general, different stakeholders agree with the favorable moment and the context of the reform. The context of financial crises and the great external pressures to cut public deficits and to improve the quality of financial information seem to be the most important factors to stimulate changes in public accounting. In addition, stakeholders recommend the use of different strategies to ensure success.