Time-driven activity-based costing
By: Robert S. Kaplan, Steven R. Anderson
Contributors: Anderson, Steven R.; Harvard Business School. Division of Research
Series: Working paper / Division of Research, Harvard Business School -- 04-045; Working paper (Harvard Business School. Division of Research) -- 04-045
Publisher: Division of Research, Harvard Business School
Published: 2004
Place of publication: Boston
Language: eng
Number of pages: 18
Description: The traditional ABC model has been difficult for many organizations to implement because of the high costs incurred to interview and survey people for the initial ABC model, the use of subjective and costly-to-validate time allocations, and the difficulty of maintaining and updating the model as (i) processes and resource spending change, (ii) new activities are added, and (iii) increases occur in the diversity and complexity of individual orders, channels and customers. Time-driven ABC requires estimates of only two parameters: (1) the unit cost of supplying capacity and (2) the time required to perform a transaction or an activity.
Notes: "November 2003"--Added t.p.

Includes bibliographical references.