Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins

Exercise 16

How does the use of a time-driven activity-based costing (TDABC) system facilitate the preparation of budgets for an organization?

Step 1 of 2

Time driven activity-based costing (TDABC) is a substitute to old-style ABC. To build TDABC managers essentially offer only two estimates for the individual department.

1. The full cost and resources supplied for the period.

2. The quantity of resources capacity, measured in time, that is used up by the organization cost object.