Can Innovation of Time Driven ABC System Replace Conventional ABC System?

Tan Ming Kuang, - (2013) Can Innovation of Time Driven ABC System Replace Conventional ABC System? In: 10th Ubaya International Annual Symposium on Management, 16 Maret 2013, Surabaya.

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The purpose of this paper is to analyze the differences between Conventional Activity-Based Costing System (CABC) and Time Driven Activity-Based Costing System (TDABC). Analyzing is conducted in terms of the method that they use when assign costs to products. The CABC consist of two stages of cost assignment to cost objects that make the process is more expensive and time-consuming than TDABC. However, in the first stage, costs of resources assigned to activities have two advantages: Firstly, it is critical step to calculate cost of product accurately. Secondly, it gives information about cost of activities that can be extremely useful to manage costs. On the other hands, TDABC introduced by Kaplan and Andersen (2007) is claimed easier and faster than CABC because costs of resources are assigned directly to cost objects. Although TDABC can be applied easily, they tend to ignore the process of determining activity costs which is conducted in the first stage of CABC. Though there is limitation, this innovation can change the way management manage and determine the cost of products.

Item Type: Conference or Workshop Item (Paper)
Uncontrolled Keywords: Conventional Activity-Based Costing System, Time-Driven Activity-Based Costing System, First-stage allocation.
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Depositing User: Perpustakaan Maranatha
Date Deposited: 09 Dec 2013 04:52
Last Modified: 09 Dec 2013 04:52

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