Research On Application Of Time Driven Activity-Based In Manufacturing Companies

Since the2008, it’s no secret that all types of enterprises have taken a beating in thefinancial crisis，especially the domestic manufacturing enterprises. They are not only facedwith increasing raw material costs and a complex marketing environment, but also facedwith the diversity of customer demand and the uncertainty brought by rapidly productreplacement. Manufacturing companies extremely focus on cost control.So that they canhave the core competitive ability by controlling the accuracy of the product cost to do thepricing decisions of the product.First, I used the normative research to study the basic principle, the counting processof time-driven activity-based costing accounting method. Secondly this paper established acost accounting model, and then compared the differences and similarities betweenactivity-based costing accounting method and time-driven activity-based costingaccounting method. Next this paper conducted necessity and feasibility analyses for Scompany applying time-driven activity-based costing accounting method by a fieldinvestigation. Then established and designed a detailed plan about how to make sure themain steps, analyse working flow of the production plant, get the activity center andshow the calculating process of the method is given by excel.After that, this papercontrasted the two methods, and drew the conclusion through the actual case of Scompany. Time-driven activity-based costing accounting method is convenient with highcalculation efficiency and cost information is accurate.So that this method can betterreflect the idle capacity to support production decision. At last, I summarized the wholepaper and gave some suggestions on the solution of manufacturing companies how toapply time-driven activity-based costing accounting method.