Fuzzy Time-Driven Activity-Based Costing

Mortaji, Seyed Taha Hossein; Bagherpour, Morteza; Mazdeh, Mohammad Mahdavi

doi:10.1080/10429247.2013.11431983

Cited by 20 publications

(17 citation statements)

References 11 publications

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“…They found that, the results of TDABC provide valuable information to managers for reducing waste in their business endeavors. Mortaji, Bagherpour, & Mazdeh (2013) have proposed a new mechanism for the TDABC by utilizing the triangular fuzzy number. They have employed fuzzy logic to estimate inputs required for TDABC.…”

Section: Time-driven Abc (Tdabc)mentioning

confidence: 99%

Implementation of TDABC in SME: A Case Study

Ganorkar¹,

Lakhe²,

Agrawal³

2018

J Corp Accounting Finance

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This article describes a procedure that allows small‐scale manufacturing industries to easily adapt time driven activity based costing system. This model is of two stages, the first stage consists of seven steps and the second step consists of three steps. The model was developed on the basis of an intensive case study conducted at a small‐scale furniture manufacturing industry. The model assigns the cost of overhead expenses such as building rent, building maintenance, power consumption, machine maintenance cost, and chemical consumable on the activities. Thereafter, the cost of activity is assigned to the product. The complete process is explained using matrices. This makes the cost‐related calculations easy and overhead costs are traced without difficulty. The ease of use of the proposed procedure is illustrated using actual data from a small manufacturing industry located in central India. Further, based on this model a generalized equation is developed. Results of the case study help the firm's strategic decision making and identify the opportunities for profitability improvement. © 2018 Wiley Periodicals, Inc.

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Section: Time-driven Abc (Tdabc)mentioning

confidence: 99%

Implementation of TDABC in SME: A Case Study

Ganorkar¹,

Lakhe²,

Agrawal³

2018

J Corp Accounting Finance

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“…To overcome these situations, without entirely abandoning the ABC concept, Kaplan and Anderson proposed a new approach called Time-Driven Activity-Based Costing (Kaplan and Anderson, 2004, 2007a, 2007bDalci et al, 2010;Mortaji et al, 2013).…”

Section: From Abc Pitfalls To Tdabcmentioning

confidence: 99%

“…In trying to resolve this problem, more activities were added to the model, generating a kind of snowball effect Anderson, 2007a, 2007b). This led to increasingly complex ABC models (Anderson et al, 2002;Anderson, 2007a, 2007b;Mortaji et al, 2013).…”

Section: Literature Review 21 From Abc Pitfalls To Tdabcmentioning

confidence: 99%

“…To overcome these situations, without entirely abandoning the ABC concept, Kaplan and Anderson proposed a new approach called time-driven activity-based costing (Kaplan and Anderson, 2004, 2007a, 2007bDalci et al, 2010;Mortaji et al, 2013). Unlike ABC, TDABC does not require regular in-depth employee surveys, which makes the costing process more straightforward and accurate as well as less expensive Anderson, 2007a, 2007b;Namazi, 2009;Reddy et al, 2012).…”

Section: Literature Review 21 From Abc Pitfalls To Tdabcmentioning

confidence: 99%

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Time-driven activity-based costing

Barros

Ferreira

2017

QRAM

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Purpose By designing a pilot time-driven activity-based costing (TDABC) model, this study aims to examine in depth the suitability and the complexity of TDABC in a manufacturing company. Design/methodology/approach To obtain a deeper understanding on the matters to analyse, this research adopts an interventionist approach. The host organisation is GP, a Portuguese company in the frozen food sector. Findings The authors’ experience allows them to assert that TDABC is suitable for a manufacturing company and it is able to deal with the variability of the industrial processes. Nonetheless, through a comparison with the models presented in the literature, TDABC appears to be more complex for manufacturing. The authors argue that this happens for two reasons. First, the two types of resources (human labour and machinery) used in production areas create a need to split tasks and to create two equations for each process, something that does not happen in service companies. Second, times are difficult to individualise for certain highly automated procedures, which could also give rise to some errors. Research limitations/implications The designed model is compared to other models presented in the literature. Practical implications This study shows a real example of TDABC in manufacturing and the procedural innovation of the time equations. Originality/value As the TDABC literature has been mostly focused on examples of service companies, the authors examine the technical suitability and the complexity of TDABC in manufacturing companies.

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“…Therefore, errors can result in a domino effect (Dejnega, 2011). In addition, data estimation (times) is based on historical averages or judgments, and its high variation can affect the quality of information (Mortaji et al, 2013). Other studies, as Öker and Adigüzel (2010) reveal specific difficulties in the practical application of TDABC in a manufacturing company that produces sheet metal and plastic parts due to restriction to measure capacity in terms of labor time.…”

Section: Introductionmentioning

confidence: 99%

Time-Driven Activity-Based Costing in the Assembly Industry

Vedernikova¹,

Siguenza-Guzmán²,

Pesantez³

et al. 2020

AABFJ

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Costs and their determination play a critical role in all manufacturing companies. The traditional costing system has received criticism resulting from the arbitrary allocation of indirect manufacturing costs. As an important initiative to address its weaknesses, new costing methods such as the Time-Driven Activity-Based Costing (TDABC) have emerged. Unfortunately, up to our knowledge, no investigations have been applied in analyzing assembly companies thoroughly nor considering all the processes necessary to obtain the final products. This article explores the TDABC application in the assembly industry through comparison with traditional volume-based costing by focusing on manual and semi-automatized production. Since the research is descriptive, a multiple-case study design was implemented in the assembly of televisions, motorcycles, and printed circuit boards. The developed methodology allowed determining the existence of factory overhead and direct labor cost variances between two different cost accounting systems, which also affected the unit cost of the products. Findings also highlight the benefits of TDABC application in the assembly industry, along with the shortcomings and future potential of research in this area.

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Fuzzy Time-Driven Activity-Based Costing

Cited by 20 publications

References 11 publications

Implementation of TDABC in SME: A Case Study

Implementation of TDABC in SME: A Case Study

Time-driven activity-based costing

Time-Driven Activity-Based Costing in the Assembly Industry

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