Case Study On Time-driven ABC Using By Andritz Limited

In today’s world, with the rapid economic development, all kinds of enterprisesare facing increasingly fierce market environment and intense competitive pressure,so the companies have attached great importance to the accuracy of the product cost.The accuracy of the product cost information determines the pricing decisions of theenterprise products to enable enterprises in an invincible position in market economicactivities.This paper established a standardized research and case studies combiningresearch framework, first, the use of normative research to study the basic principlesof activity-based costing and time-driven activity-based costing accounting methods,accounting system updates and equation of time, Compared the similarities anddifferences between the time-driven activity-based costing and the traditionalactivity-based costing. Then use the field survey to study the Andritz (China) Co.,Ltd.’s(hereinafter referred to as ‘Andritz Ltd’.) application of the original costaccounting system, and application analysis. Finally, The articles detailed analyzedthe Andritz Limited implementation of time-driven activity-based costing (forexample to the production sector), in accordance with the actual situation of thecompany, determined the application of the general principles and basic ideas, theaccounting steps, and comparative analyzed time-driven activity-based costing andtraditional activity-based costing results.The main conclusions of this paper are:time-driven activity-based costing is flexible, costing small amount of work, thecalculation result is objective and better reflects the idle production capacity,strengthen the management of production. Businesses can use time-drivenactivity-based costing study conducted for the accurate measurement of the enterpriseproduct cost, strengthen the management of the cost of doing business is important.This is the first detailed time-driven activity-based costing in the successfulapplication of the domestic medium-sized high-tech machinery enterprises, and givesthe revelation of the successful application of time-driven activity-based costing andallocation of indirect costs based on cost form other domestic enterprises drivenactivity-based costing is an important reference significance.