
38 ◾ Implementing SAP
®
CRM
Table 1.4 Conventional ABC versus Time-Driven ABC
Conventional Activity-Based Costing Time-Driven Activity-Based Costing
Tedious, costly, and time consuming to
build a model that is error prone, difcult
to validate, and localized model.
Easier, inexpensive, and faster to build an
accurate and enterprise-wide model
Drives cost rst to the activities performed
by a department and then assigns the
activity costs down to orders, products, and
customers on the basis of subjective
estimates (based on interviewing and
surveying process) of the quantity of
departmental resources consumed by
various activities.
Drives costs directly ...