fe a t u r e a r t i c l e Figen Öker and Hümeyra AdıgüzelA ctivity-based costing (ABC) was developed in the 1980s to solve the problems caused by inaccurate allocation of overhead costs using traditional cost accounting systems. Although ABC can lead to a better picture of profitability, implementing ABC can be fraught with problems. To address these problems, time-driven activity-based costing (TDABC) was developed. It links general ledger costs directly to departments rather than activities, allocating overhead and indirect costs to products or services according to the actual work demanded from the departments by the products or services.This article discusses how TDABC can be used in a manufacturing company. TDABC may be more appropriate and easier to implement for service companies than manufacturing companies, yet it can still prove appropriate and useful for manufacturing companies in which capacity commonly can be expressed as a time measure.

This article demonstrates the implementation of time‐driven activity‐based costing (TDABC) in a manufacturing company, showing how it can provide far more relevant information about product profitability and capacity utilization than standard costing. © 2016 Wiley Periodicals, Inc.

Traditional cost systems cause cost distortions because they cannot meet the requirements of today's businesses. Therefore, a new and more effective cost system is needed. Consequently, time-driven activity-based costing system has emerged. The unit cost of supplying capacity and the time needed to perform an activity are the only 2 factors considered by the system. Furthermore, this system determines unused capacity by considering practical capacity. The purpose of this article is to emphasize the efficiency of the time-driven activity-based costing system and to display how it can be applied in a health care institution. A case study was conducted in a private hospital in Cyprus. Interviews and direct observations were used to collect the data. The case study revealed that the cost of unused capacity is allocated to both open and laparoscopic (closed) surgeries. Thus, by using the time-driven activity-based costing system, managers should eliminate the cost of unused capacity so as to obtain better results. Based on the results of the study, hospital management is better able to understand the costs of different surgeries. In addition, managers can easily notice the cost of unused capacity and decide how many employees to be dismissed or directed to other productive areas.

During the first commitment period of the Kyoto Protocol, many developed countries were forced to restrict carbon emissions. Flexible mechanisms were initiated to reduce carbon emissions and support clean energy projects. Regulated carbon markets were established to trade carbon premiums produced by these projects by signatory countries, while carbon premiums produced by nonsignatory countries were traded in voluntary markets. Following limited participation in the Kyoto Protocol, by the leadership of European Union, 195 countries presented contributive ideas in Paris Agreement, which is the first-ever universal, legally binding global climate deal. Kyoto Protocol sets commitment targets that have legal force, while the Paris Agreement emphases on consensus building and allows for voluntary and nationally determined targets. Another key difference between Paris Agreement and the Kyoto Protocol is its scope. It does not provide a specific division between developed and developing nations. By means of these changes, trading in voluntary carbon markets is expected to increase due to the higher demand to offset unavoidable carbon emissions. There has been no authoritative guidance published on carbon accounting by the International Accounting Standards Board or the Financial Accounting Standards Board. This study proposes how to measure and report the carbon allowances and carbon credits.

Turkey has a relatively short history of accounting in the modern sense. However, it has been rapidly developing since the 1980s in reference to accounting education, laws and institutions. Following the establishment of the Turkish Republic in 1923, a state oriented policy was initially implemented, followed by the experimentation of a mixed economic model after the mid-1940s and the imposition of a more liberal economic policy after the 1980s. The latter alterations have naturally increased the amount of international capital movements into Turkey and thus the portion of foreign capital has increased. As a result of these developments, reliable, accurate and comparable financial information has gained importance. Today, Turkey needs to prepare the required institutional and legislature system in order to better maintain the growing international financial relationships. Besides needing to integrate within the world, Turkey being in the process of gaining EU membership has brought about significant progress for convergence in the fields of international financial reporting standards and auditing standards. This study intends to assess the legislative arrangements, related institutions and professional education in the fields of accounting and auditing, in order to determine the point that Turkey achieved international convergence in the fields of accounting and auditing.