Activity-Based Costing (ABC) and Time-Driven Activity-Based Costing (TDABC): Applicable Methods for University Libraries?

Abstract

Objective – This article provides an overview of how university libraries research and adapt new cost accounting models, such as “activity-based costing” (ABC) and “time-driven activity-based costing” (TDABC), focusing on the strengths and weaknesses of both methods to determine which of these two is suitable for application in university libraries.
 
 Methods – This paper reviews and summarizes the literature on cost accounting and costing practices of university libraries. A brief overview of the history of cost accounting, costing, and time and motion studies in libraries is also provided. The ABC and the TDABC method, designed as a revised and easier version of the ABC by Kaplan and Anderson (Kaplan & Anderson 2004) at the beginning of the 21st century, as well as the adoption and adaptation of these methods by university libraries are described, and their strengths and weaknesses, as well as their suitability for university libraries, are analyzed.
 
 Results – Cost accounting and costing studies in libraries have a long history, the first of these dating back to 1877. The development of cost accounting and time and motion studies can be seen as a natural evolution of techniques which were created to solve management problems. The ABC method is the best-known management accounting innovation of the last 20 years, and is already widely used in university libraries around the world. However, setting up an ABC system can be very costly, and the system needs to be regularly updated, which further increases its costs. The TDABC system can not only be implemented more quickly (and thus more cheaply), but also can be updated more easily than the traditional ABC, which makes the TDABC the more suitable method for university libraries.
 
 Conclusion – Both methods are suitable for university libraries. However, the ABC method can only be implemented in collaboration with an accounting department. The TDABC method can be tested and implemented by separate departments, and thus can contribute to the provision of better and more effective library services at lower costs. However, the involvement of experts in costing and accounting is recommended.

Análise Da Percepção Dos Docentes Quanto Aos Métodos Baseados Em Atividades

“…As premissas relacionadas ao TDABC têm sido estudadas por diferentes autores. (GUZMAN et al, 2014;KONT;JANTSON, 2011;STOUTHUYSEN et al;. Estes estudos corroboram alguns dos benefícios apontados por Kaplan e Anderson (2004), pois demonstram que esta nova abordagem é mais rápida, fácil e menos onerosa do que o método ABC tradicional.…”

“…No entanto, uma análise detalhada da literatura desperta questionamentos relevantes sobre estes métodos. Especialmente, sobre tópicos como subjetividade ANDERSON, 2007;TSAI et al, 2012;SCHOUTE, 2011), custo/benefício (BYRNE, 2011; MAIGA; NILSSON; JACOBS, 2014; SCHULZE; SEURING; EWERING, 2012; LIN , 2012), complexidade de implantação e manutenção (SANTANA; AFONSO, 2015;SOUZA et al, 2010;EVERAERT et al, 2008;CAMPANALE;CINQUINI;TENUCCI, 2014;GUZMAN et al, 2014;KONT;JANTSON, 2011;STOUTHUYSEN et al, 2010), informação para tomada de decisão (TSAI et al, 2012;SCHOUTE, 2011;BALAKRISHNAN, LABRO, SIVARAMAKRISHMAN, 2012), aplicabilidade (SANTANA;AFONSO, 2015;SOUZA et al, 2010), e até mesmo sobre suas origens (GUNASEKARAN;MCNEIL;SINGH, 2000;KACIUBA;SIEGEL, 2009;ISMAIL, 2010;GOSSELIN, 1997;CAPUSNEANU;MARTINESCU, 2010;PHAN;BLAIRD, 2014).…”

Application of the TDABC model in the logistics process using different capacity cost rates

“…3926/jiem.2086 activities. Thus, it is a model that assigns resource costs directly to cost objects (Homburg, 2005;Kaplan & Anderson, 2007;Kont & Jantson, 2011).…”

Development a new costing structure using time driven activity-based costing for palm oil plantation

“…Work by [19] also did similarly but applied the TDABC in library service. [20] and [21] solely used capacity cost rate to find the true cost in library sector. In a nutshell, this total research gap was constructed compliance to the current data as it was based on legit research findings.…”