Time-Driven Activity-Based Costing

Kaplan, Robert S.; Anderson, Steven R.

doi:10.2139/ssrn.485443

Cited by 628 publications

(1,053 citation statements)

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“…The low utilization rates found in the reviewed studies may be related to the various criticisms already stated about the ABC, namely: the complexity of the method, due to the need to interview the company employees in order to identify the activities and their respective labor times (Hoozée and Bruggeman, 2010;Kaplan and Anderson, 2004;Stout and Propri, 2011;); and the time and cost spent in creating and maintaining the method (Kaplan and Anderson, 2007).…”

Section: -Literature Reviewmentioning

confidence: 99%

“…In response to these criticisms, Kaplan and Anderson (2005) proposed a new approach by activities, the Time Driven Activity Based Costing (TDABC). It is a simpler, cheaper and more powerful approach than the ABC, because it allows the costs of the resources to be assigned to the processes, products, services and clients in a simple and precise way (Kaplan and Anderson, 2005).…”

Section: -Literature Reviewmentioning

confidence: 99%

“…It is a simpler, cheaper and more powerful approach than the ABC, because it allows the costs of the resources to be assigned to the processes, products, services and clients in a simple and precise way (Kaplan and Anderson, 2005). The main advantages of the TDABC are the following: it is not necessary to conduct interviews with the employees, because the identification of the activities and their respective labor times is achieved by direct observation; is easier to computerize, which allows for a more rapid and economic maintenance; it allows to identify the cost of the unused capacity; and it increases the ability to forecast the demand for resources (Kaplan and Anderson, 2007;Pineno, 2012).…”

Section: -Literature Reviewmentioning

confidence: 99%

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Quality in management accounting: approach by activities in large companies

Machado

Alves

2017

IJPQM

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This study intends to contribute to the knowledge about the approach by activities, a management accounting method that promotes the quality of information. As specific objectives we have identified the following: to analyze the knowledge rate regarding the approach by activities, and identify whether there is a link between it and the financial officers' characteristics; to analyze the utilization rate of the approach by activities, and the factors conditioning it; to analyze whether there is a link between a company's features, and the use of the approach by activities. The data collection method used was the application of a survey to the financial officers of the largest Portuguese companies, which yielded 61 valid responses. The results found allowed us to conclude the following: the Time Driven Activity Based Costing is very little known and used in Portugal; there is a link between the knowledge of the approach by activities and the financial officers' gender, age and educational background; there is a link between the use of the approach by activities and two company features: the legal form and the capital holding.

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Section: -Literature Reviewmentioning

confidence: 99%

Section: -Literature Reviewmentioning

confidence: 99%

Section: -Literature Reviewmentioning

confidence: 99%

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Quality in management accounting: approach by activities in large companies

Machado

Alves

2017

IJPQM

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“…ABC techniques have been able to enable accounting of the activity cost that contribute to the production of good or service. Kaplan and Anderson (2007) identified the following issues with ABC when applied to medium sized organizations; especially when there are small changes to the operations or they want to obtain regular monthly reports from the model:  The interviewing and surveying process was time-consuming and costly. …”

Section: Literature Reviewmentioning

confidence: 99%

Time-Driven Activity Based Costing for the Improvement of IT Service Operations

Adioti¹,

Valverde²

2013

IJBM

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This study aims to show that application of Time-Driven Activity Based Costing (TDABC) to the management of cost of Information Technology (IT) Services operations and how it can be used to achieve significant cost reduction. To achieve this; a case study organization was used and the scope of activities was limited to Technical Services department Operations units. Interviews were conducted with the unit managers and their operations staff. These units are the Network Operations Centre, Data Centre, Service Desk and Field Services units. These units provide support to existing services and satisfy requests that involve modification of these services. From the interview, a list of services were developed and linked to activities and time to execute each was provided by the operational staff. Time equations were developed from the activity groups that supported each type of service. Capacity cost rates were derived per unit by obtaining a ratio of the monthly cost of running each unit and the practical time resource capacity of each unit. A TDABC model was then simulated with Microsoft Excel; which incorporated the activities, the time to deliver each and the capacity cost rate to derive the cost of delivering a service. Data for six months of service request, incident and change orders were obtained to simulate a test scenario. The result of the test showed that two variations (out of six) of that incident type cost more than 75% of the overall cost of that incident type, though they constitute about 30% of the incident type. This study showed that TDABC is an effective tool in identification of costly processes which may then allow IT operations managers and supervisors to take critical decisions about cost control, charge-back or costing of services.

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“…Following the explanation of our choice, we present ''Take Five,'' in which the editor goes behind the discovery with a oneon-one interview with an author of the article featured in ''Editor's Spotlight. ' The developers, therefore, modified their approach to emphasize the time needed for a given activity [3]. TDABC requires estimates of only two parameters: The cost per time unit of supplying resource capacity and the unit times of consumption of resource capacity by products, services, and customers.…”

mentioning

confidence: 99%

Editor's Spotlight/Take 5: Time-driven Activity-based Costing More Accurately Reflects Costs in Arthroplasty Surgery

Manner

2016

Clinical Orthopaedics &Amp; Related Research

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Time-Driven Activity-Based Costing

Cited by 628 publications

References 0 publications

Quality in management accounting: approach by activities in large companies

Quality in management accounting: approach by activities in large companies

Time-Driven Activity Based Costing for the Improvement of IT Service Operations

Editor's Spotlight/Take 5: Time-driven Activity-based Costing More Accurately Reflects Costs in Arthroplasty Surgery

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