BNET Business Dictionary
Business Definition for: Cost Function
- a mathematical function relating a firm's or an industry's total cost to its output and factor costs
Wiktionary Definition for: Cost Function
- Any mathematical relationship between an activity and its cost
Additional Resources
- Privatization, Foreign Bank Entry and Bank Efficiency: A Fourier-Flexible Function Stochastic Cost Frontier Analysis
- This paper estimates a Fourier-flexible frontier cost function. Specification tests indicate that the stochastic frontier model with a Fourier- flexible form with a truncated normal distribution of the inefficiency term allowing for time varying technical efficiency is preferred. The results show that new private and privatized banks, contrary to some...
- White papers 2002-11-01
- Regulation And Measuring Cost Efficiency With Panel Data Models
- This paper examines the application of different parametric methods to measure cost efficiency of electricity distribution utilities. The cost frontier model is estimated using four methods: Displaced Ordinary Least Squares, Fixed Effects, Random Effects and Maximum Likelihood Estimation. Different specifications are compared with regards to the estimation of cost frontier...
- White papers 2003-01-01
- Delta's new song: a case on cost estimation in the airline industry.
- ABSTRACT: This case provides the opportunity to use various empirical techniques (i.e., high-low method, simple regression, and multiple regression) in the estimation of cost functions. The case uses the airline industry as the setting for this analysis and, in particular, focuses on the efforts of Delta...
- Research articles 2004-08-01
- No Such Thing As A Free Safe Lunch: The Cost Of Food Safety Regulation In The Meat Industry
- This study develops theoretical and econometric cost function models for the meat industry to test the hypothesis of safety exogeneity, i.e., that product safety does not affect productive efficiency. Using plant-level data from the Census of Manufactures, this hypothesis is rejected. Estimates of the impacts of food safety regulation on...
- Research articles 2000-05-01
- Holding Company Cost Economies in the Global Advertising and Marketing Services Business
- This paper assesses size and scope-related economies in the global advertising and marketing services business. A translog cost function is employed wherein a firm's costs vary according to its scale and two dimensions of the scope of its operations. One dimension of firm scope relates to how its output is...
- White papers 2005-04-18
- Model Reference Control in Inventory and Supply Chain Management: The Implementation of a More Suitable Cost Function
- A method of model reference control is investigated in this study in order to present a more suitable method of controlling an inventory or a supply chain. The problem of difficult determining of the cost of change made in the control in supply chain related systems is studied and a...
- White papers 2004-06-21
- New Options for the Finance Function
- Companies are searching for any advantage to remain competitive, but cost cutting alone can leave them vulnerable regardless of where it takes place within an organization. As executives turn their attention to the finance function, they should consider outsourcing—not only as a means to cut costs but also to fundamentally...
- White papers 2002-11-19
- Macrs Depreciation With A Spreadsheet Function: A Teaching And Practice Note
- ABSTRACT While Excel[TM] and Quattro Pro[TM] do not have a function MACRS(cost, class life, year), they do have a variable declining balance function, VDB, that can be used to compute annual MACRS depreciation amounts. A literature search of journals and texts did not find examples using this function nor...
- Research articles 2001-06-22
- The Regulatory Environment, Relative Price Efficiency And The Egyptian Private Manufacturing Sector
- This paper explains the impact of regulatory and institutional distortions, and reforms instituted to remedy them on the private manufacturing sector of Egypt. We undertake this study using a generalized cost function, which subsumes the standard neoclassical cost function as a special case. This approach allows us to assess the...
- White papers 2003-09-01
- High-temperature polyamide offers cost-effective bobbin solution
- Offering a cost-effective means of improving the function of the component and reducing rejects, DSM's high temperature polyamide 46 Stanyl has been specified by Philips Electronics for a critical bobbin component in its new third brake light system.Offering a cost-effective means of improving the function of the...
- Research articles 1996-04-01
- After a streamlined cost comparison, HHS's administration on aging has decided to outsource its Center for Communications and Consumer Services/Public Inquiries function in Rockville, MD.(Procurement Watch)(Brief Article)
- After a streamlined cost comparison, HHS's Administration on Aging has decided to outsource its Center for Communications and Consumer ... After a streamlined cost comparison, HHS's Administration on Aging has decided to outsource its Center for Communications and Consumer Services/Public Inquiries function in Rockville, MD....
- Research articles 2003-09-19
- National Semiconductor Introduces New Single Function PCMCIA Interface Chips
- SANTA CLARA, Calif.--BUSINESS WIRE--Aug. 20, 1996--National Semiconductor CorporationR today announced two new Single Function PCMCIA Interface Chips, the PCM16C010 and the PCM16C011. Both chips are fully compliant with the PC Card Standard and offer designers a simple-to-use, off-the-shelf solution to PCMCIA single function interface technology. The new devices...
- Research articles 1996-08-20
- Quality Function Deployment (QFD)
- Quality Function Deployment QFD is a way of making the 'voice of the customer' heard throughout an organization. It is a systematic process for capturing customer requirements and translating these into requirements that must be met throughout the 'supply chain'. QFD is particularly valuable when design trade-offs are necessary to...
- White papers 2003-01-01
- Sharp presents new 16/32- and 32-bit SoCs with Ethernet and USB function; BlueStreak models LH79524 and LH79525 based on the ARM720T core round off the System-On-Chip palette by highly integrated, low-cost devices.
- M2 PRESSWIRE-30 March 2004-Sharp Microelectronics Europe: Sharp presents new 16/32- and 32-bit SoCs with Ethernet and USB function; BlueStreak models LH79524 and LH79525 based on the ARM720T core round off the System-On-Chip palette by highly integrated, low-cost devicesC1994-2004 M2 COMMUNICATIONS LTD RDATE:03302004 ...
- Research articles 2004-03-30
- Cost 'counts more than function or technology'.
- Byline: Melanie Wold When banks decide on IT strategies the cost of ownership is more important than features, function or technology, says Till Guldimann, vice-chairman of SunGard, a financial IT solutions group.Guldimann says that there has been a fundamental shift in financial IT since...
- Research articles 2003-02-09
- Internet Security Systems Selected by Hyatt Hotels as Preferred Network Security Provider; Hyatt Hotels & Resorts To Replace Existing Security Software with Integrated, Multi-Function Security Appliance from ISS
- ATLANTA -- Internet Security Systems, Inc. ISS (NASDAQ: ISSX), the worldwide leader in preemptive, enterprise security, today announced that Hyatt Hotels & Resorts will replace its existing security software with ISS' ProventiaR Network Multi-Function Security appliance in all of its hotels in the United States. Proventia Multi-Function Security appliances are...
- Research articles 2006-06-27
- Interactive Data Corporation Q3 2007 Earnings Call Transcript
- Question-and-Answer SessionOperator Operator Instruction Your first question comes from the line of Randy Hugen with Piper Jaffray. Randy Hugen - Piper Jaffray Hi. Great quarter. Stuart Clark Hello Randy. Andy Hajducky Hello Randy. Randy Hugen - Piper Jaffray I was just wondering, how should we think about operating margins,...
- Earnings calls 2007-10-25
- The Value Of Setup Cost Reduction And Process Improvement For The Economic Production Quantity Model With Defects
- This paper investigates the effect of imperfect yield on economic production quantity decisions. The production system is assumed to produce some time-varying proportion of defective parts which can be repaired at some unit cost. For a general defect rate function, the authors develop results that characterize the optimal run length...
- White papers 2004-11-29
- Chain Indices Of The Cost Of Living And The Path-Dependence Problem: An Empirical Solution
- This paper proposes an empirically feasible method for correcting the path-dependence bias of chain indices of the cost of living. Chain indices are discrete approximations to Divisia indices and it is well known that the latter are path-dependent: the level of a Divisia index is affected not just by the...
- White papers 2007-05-01
- Ethicon Reduces Cost of Medical Device by 63%. Here's How.
- By Joseph Ogando, Senior Editor Fewer parts, new joining techniques and smarter part design add up to big cost savings. With all their regulatory and technical requirements, medical devices don't always lend themselves to aggressive cost reduction. ...
- Research articles 2006-10-09
