Time-Driven Activity-Based Costing: A Simpler and More Powerful Path to Higher ProfitsIn the classroom, ABC looks like a great way to manage a company’s resources. But many executives who have tried to implement ABC on a large scale in their organizations have found the approach limiting and frustrating. Why? The employee surveys that companies used to estimate resources required for business activities proved too time-consuming, expensive, and irritating to employees. This book shows you how to implement time-driven activity-based costing (TDABC), an easier and more powerful way to implement ABC. You can now estimate directly the resource demands imposed by each business transaction, product, or customer. The payoff? You spend less time and money obtaining and maintaining TDABC data—and more time addressing problems that TDABC reveals, such as inefficient processes, unprofitable products and customers, and excess capacity. The authors also show how to use TDABC to link strategic planning to operational budgeting, to enhance the due diligence process for mergers and acquisitions, and to support continuous improvement activities such as lean management and benchmarking. In presenting their model, the authors define the two questions required to build TDABC: 1) How much does it cost per time unit to supply resource capacity for each business process? 2) How much resource capacity (time) is required to perform work for a company’s many transactions, products, and customers? The book demonstrates how to develop simple, valid answers to these two questions. Kaplan and Anderson illustrate the TDABC approach with a wealth of case studies, in diverse settings, based on actual implementations. |
Contents
| 3 | |
The Role of Time Equations | 23 |
The Practical Issues | 41 |
Launching a Project | 67 |
Forecasting | 85 |
Creating the New DueDiligence | 107 |
New Applications | 123 |
TIMEDRIVEN ACTIVITYBASED COSTING | 149 |
Guiding Profitable Growth | 197 |
Financial | 209 |
Forecasting | 219 |
Introducing Business Concepts into | 231 |
Transforming Unprofitable Customers | 245 |
Frequently Asked Questions | 251 |
| 259 | |
About the Authors | 265 |
Other editions - View all
Time-driven Activity-based Costing: A Simpler and More Powerful Path to ... Robert S. Kaplan,Steven R. Anderson No preview available - 2007 |
Common terms and phrases
Acorn Systems activities activity-based budgeting actual analysis assigned ATB Financial Balanced Scorecard benchmarking branches build Business Performance Management calculated capacity cost rate capacity utilization capture Citigroup clients company’s complex Compton conventional ABC model cost and profitability cost driver cost objects cost system customer order customer profitability customer relationships customer service delivery departmental EBITDA employees enterprise resource planning equation estimates example expenses facilities FIGURE forecast identify implementation Jackson State University Kemps lean management line items machine million month monthly operating P&Ls packaging pallets percent perform personnel practical capacity process improvements product and customer product lines production runs profit model project team quantity resource capacity resource costs revenue Sanac setup Sippican strategy SuperValu suppliers supply supply-chain TDABC model Time-Driven ABC model tion tomer units unprofitable unused capacity Value Stream Map vendors warehouse