The Study On The Time-driven Activity-based Costing Management

In 1988, Robert. Kaplan and Steven. Anderson put forward Activity-based Costing which set off a wave of research and application in Business and academic circles at home and abroad. Subsequently, Activity-based Costing theory has developed to the Activity-based management theory. The proposition of the activity and the resulting Activity-based management has developed our understanding of business activities in depth and the enterprise costing management deep into the activity level. But since 1996, the trend of Activity-based Costing declining again. The enormous amount of computation and the complexity of traditional Activity-based Costing, makes the operation too difficult to implement in the practical world. Traditional Activity-based Costing face great difficulties. Kaplan, in 2004, founder of Activity-based Costing published his latest achievement:Time-driven Activity-based Costing.This paper first described the basic theory of Activity-based Costing and the basic principle of Time-driven Activity-based Costing, and the theory of Costs-feature applied to Time-driven Activity-based Costing.Then,the paper compares, the Time-driven Activity-based Costing and traditional Activity-based Costing the similarities and differences, analysis the advantages of Time-driven Activity-based Costing.Subsequently, a thorough study on accounting and management of unused capacity under Time-driven Activity-based Costing has been done, an accounting method and analytic management method has been proposed. On this basis, further research has been given on how to measure customer profitability under Time-driven Activity-based Costing, and cite instances to describe customer profitability analysis and management.Then the thesis made a detailed analysis on the Time-driven activity-based Costing in the application of cost accounting in the enterprise,specifically discussed with the example of WeiJia company how to implement Time-driven Activity-based Costing in the business cost accounting.The final analysis of this costing the implementation of our current situation and the reasons put forward my application Time-driven Activity-based Costing response.