What is time-driven activity based management (TDABC)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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What is time-driven activity based management (TDABC)?  How is it different from activity based costing (ABC) & why would TDABC be used instead of ABC?

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TDABC stands for time-driven activity-based costing. It is a costing method based on activity and driven by time. It is the most effective way of cost. TDABC requires less amount of data, it only requires two things:

  1. The capacity and cost of resources
  2. Unit times for performing transactional activities.

 

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