METHOD TIME DRIVEN ACTIVITY BASED COSTING – LITERATURE REVIEW

This article presents a literature review of the method Time Driven Activity Based Costing, like an instrument to better assignment of costs to activities and their comparison with antecedent method Activity Based Costing. Paper shows the implementation of this method in the condition of manufacturing corporations, distribution centres, agriculture, but also in the field of services, especially in the hospitality. The article is trying to point out the benefits of this method for whole range of companies without difference to branch classification, determine base presumptions for implementation, but also disclose some drawbacks in the application of this new method in the practice with help of case studies, which have been published until this time. The aim of paper is to find out the base principles of method Time Driven Activity Based Costing in its right application.Activity Based Costing, Time Driven Activity Based Costing, time equations, customer profitability analysis, costs of processes

The importance of activity-based costing method (ABC) In Romania's business environment changes

The purpose of this paper is to present the importance of Activity-Based Costing method (ABC) in Romania's business environment changes. We analyzed the possibilities to adapt to a modern management accounting method and managerial accounting organization assumptions of the ABC (Activity-Based Costing) method in Romanian enterprises. The article ends with the authors' conclusions about the changes of the ABC method in the Romanian’s business environment.Activity-Based Costing; management accounting; entity; implementation; business environment

Strategies for implementing activity-based costing in the UK manufacturing industry

The purpose of this paper is to report the findings with a case study on why activity based costing lacks impact in the UK manufacturing industry. Activity based costing was performed on selected MT range subsystems of an electrical power generator to compare with the current UNN UK’s conven-tional costing system. The results have found that the current costing system works well for the MT products and thus change of costing system is not necessary for these products. The activity based costing system can be partially implemented in UNN UK for areas requiring detailed costing infor-mation such as new renewable products. Based on the result of the case study, this paper also high-lights the strategies need to be considered in order to adopt activity based costing within a typical manufacturing environment

Activity-Based Costing and Its Derivatives and Significance in the Cutting-Edge Environment

The purpose of this article is to explore activity-based costing with its derivative, that is time-driven activity-based costing and fuzzy time-driven activity-based costing via some relevant researches and observe significance of this systems in sophisticated business environment. Activity-based costing is a costing system with two phases that track cost from activity to product. The emergence of activity-based costing is driven by irrelevance calculation of traditional costing system that cause information distortion. Therefore, activity-based costing emerges as a alternative problem solving of this distortion. But activity-based costing as a system has its drawbacks. These drawbacks try to be covered later with the emergence of model development of former activity-based costing. Through time-driven activity-based costing, activity-based costing that previously complex and expensive become simpler and more economic. Subsequently, through uzzy time-driven activity-based costing, calculation of time-driven activity-based costing that previously in-absolute and ambiguity become less. Through three tradeoff analysis, that is cost-benefit, complexity-simplify, and first-secondary, it is known that activity-based costing and its derivative still have a great significance in business environment that full of sophistication and recency

ACTIVITY BASED COSTING FOR BETTER COST MANAGEMENT

Implementing change in management, successfully and profitably, is the greatest challenge for modern enterprises. Innovation in strategies, marketing performance, role of competition, change in technology, change in customer needs, management initiatives are all facts of life in the global environment today. Cost management works with its customer to manage change more profitably. Activity-Based Costing (ABC) is a new methodology of product costing which measures the cost of products more accurately. Overhead allocation is much more sophisticated under this system. This paper attempts to highlight the need, importance and methodology of ABC for better Cost Management in modern enterprises.Cost management; Cost and activity drivers; Activity based costing (ABC); ABC implementation; ABC applications

Analisis Penentuan Tarif Rawat Inap Dengan Metode Activity Based Costing Pada RSUD Hapsari Medika Kota Lubuklinggau

The background of this research is Hapsari Medika Hospital who calculate hospitalization room rates on the basis of unit cost, although the calculation of rates of hospitalization has been regulated by the government based on the unit cost, but the hospital will be able to apply a calculation based onActivity Based Costing System for consideration. The research objective is to increase knowledge about the determination of Tariff Inpatient by using Activity Based Costing as well as being one of the inputs which provideinformation on the Activity Based Costing, especially in setting of a hospital. Data collection techniques are documentation, and data analysis used is quantitative analysis and Kualitatif.Hasil calculations showed that the hospitalization rates by using activity based costing, when compared with the rates used by the hospital, the activity based costing deliver greater results for VIP class, Class II and Class III, as well as providing smaller yieldfor Class I. This is because loading the overhead on each product. On activity based costing, overhead on each product charged to the many cost driver. So in activity based costing, has been able to allocate costs accurately kam kesetiap activity based on consumption respectively

Cost measurement in laparoscopic surgery: results from an activity-based costing application

Activity Based Costing (ABC) techniques are designed to support advanced cost analysis in different organizations. Centred on organization activities and processes, it provides more accurate cost information on cost objects using appropriate cost drivers and constitutes a powerful costing model to improve efficiency and effectiveness in delivering products and services. ABC can be successfully applied also in Health Care organizations, where the patient is the main “object” of the activities performed. In addition, in can be fruitfully used in costing the resource consumption of new medical technology devices or surgery processes to assess their economic impact on health care costs. The purpose of this paper is to describe an Activity based costing model designed to measure and control resources consumption and cost when a new technology is applied in health care processes. An ABC model has been defined in relation to laparoscopic technologies applied to surgical cases, designing a health care “activity hierarchy” based on the processes of a specific local unit organization. The output of the application has been a full cost of laparoscopic surgery to be compared with the correspondent DRG current value. As a further result, the paper shows how the ABC model is able to generate different cost figures referred to activity levels or aggregations able to support decision making especially when the introduction of a new surgical technology has to be economically assessed. Propositions are finally made to generate discussion about the effectiveness of the existing cost accounting systems in the health care organizations and on the need for the wider diffusion of ABC techniques in this service sector.Activity-Based Costing, Economic assessment of surgery techniques

Analisis Activity Based Costing System (ABC System) Sebagai Dasar Menentukan Harga Pokok Kamar Hotel (Studi Kasus Pada Hotel Selecta Kota Batu Tahun 2014)

The enterprise can implement Activity Based Costing System (ABC System) to determine the cost of the base or service price. This method is used to make a good decision regarding the cost of the base or service price in the hotel's diversity in providing products or services. This study is aim to determine the calculation and the differences of the base price of renting the hotel's room in Selecta Hotel (traditionally) and the calculation by using abc system. The results showed there were some differences between the method applied by Selecta Hotel and ABC System. Based on the result of calculations, there were differences between a lower price (undercosting) for six types of rooms namely Family, Deluxe, Superior, Executive, Suite and Exclusive type which were Rp 225.007,15, Rp 218.510,72, Rp 292.523,33, Rp 66.426,15, Rp 250.638,78, and Rp 132.460,68. While the two types of rooms had a higher price (overcosting) Cottage I and Cottage VII type. They are Rp 857,601.79 and Rp. 171,568.28

Activity-based Management in France: A focus on the information systems department of a bank

The aim of the paper is to describe the Activity-based Costing and Management methods applied in France. For that purpose, we use a literature review and a case study. In a first time, we analyse the origins of the methods and their diffusion. Then we present the French situation. Finally, we propose a case study that takes place in a French bank. Our paper shows that the ABC and ABM methods are as developed in France as in the Anglo-Saxon countries and that the methods are strategically oriented.Activity based costing; activity-based management; case study; bank