February 2007
Intermediate to advanced
266 pages
7h 11m
English
Content preview from Time-Driven Activity-Based Costing
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APPENDIX B
FREQUENTLY ASKED QUESTIONS
1. Is implementing Time-Driven Activity-Based Costing (TDABC) worthwhile, even for a small company, with few departments and transactions? In our experience, all organizations benefit from the discipline of building a TDABC model. But some companies benefit more than others. What governs the fit has less to do with company size than with other factors, such as these:
- Standardization of processes: The more repeatable the process, the easier it is to model with a time equation.
- Diversity of products and customers: If you have only a few products or customers, and they are relatively similar to each other, then the accuracy of a standard cost system or conventional ABC may be sufficient. If, however, you ...
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