Simplified forms of ABC use time-driven elements for service companies that are well aligned with the resources deployed in terms of units of time of labor.

Question

Quizplus · Accepted Answer

Time-driven activity-based costing (TDABC) simplifies the traditional ABC method by using time as the primary driver of costs, which aligns well with how service companies deploy resources, particularly in terms of labor hours.

Simplified Forms of ABC Use Time-Driven Elements for Service Companies