Research On Application Of Time-driven Activity Based Costing In Survey And Design Enterprises

It has been one of the most difficult and important thing to allocate indirect labor cost in the cost management of China's survey and design enterprises,and it's also the vital problem for them to improve management efficiency.Meanwhile,traditional activity-based costing method is faced with problems of being inefficient and inaccurate.Time-driven activity based costing serves as an optimization and improvement of traditional activity-based costing.By calculating cost driven rate and building time equation,Time-driven activity based costing managed to achieve scientific,efficient and accurate distribution of indirect labor costs.The purpose of this study is that through case analysis of A Survey and Design Institute,find out time-driven activity based costing application methods in its allocation of indirect costs,thus building the system of time driving activity based costing application in our survey and design enterprise.Literature research,case studies,comparative research methods and data analysis methods are used.Through two case studies on indirect labor cost distribution of survey and design projects and R&D projects,shortcomings of traditional costing method are found out and basic framework and idea of time-driven activity based costing are constructed,which in turn improve the theoretical system of activity-based costing.Based on case study and data analysis,practical recommendation for improving cost management for A Survey and Design Institute are came up with at organizational level,technical level,specific implementation level and industry level.Specific measures includes strengthen departmental communication and build up propulsion mode of “lead by chief accountant and coordinated by all departments with pilot departments”;hire professional software design team to achieve suitable labor hour management system;clear implementation steps of time-driven activity based costing;strengthen industry communication and absorb experience from successful enterprises.