Creating The Profit Focused Organization Using Time-Driven Activity Based Costing
Year: 2008
Type: preprint
Abstract: The competition conditions increasing with globalization, economic developments and high customer expectations; complicate sustaining and increasing of market share of the firms in the sectors. Increasing importance of digitalization, human, information and effective management; being unavoidable of transformation, also make difficult to manage the change in the competitive environment. Therefore, the firms looking for solution for sustaining existence. To overcome these difficulties the firms; changing the working manner; from regular markets to irregular markets and from split product to composite product; shortly there is a big change towards perfect competition market. Furthermore, only production isn’t enough. Quality, speed, decreasing cost and productivity; constitute the bases of unconditional customer satisfaction and success. If we are looking the event for increasing the profit; because of price is set by the market dynamics in the perfect competition market, therefore there are two ways increasing the profits; productivity and cost reduction. Activity based costing is a method that developed for firms to reach true cost, more effectively making decision information. Since firstly developed, it supplied the firms reaching the true information, but because of difficulties of applying, just 50% of firms applied. Because of necessity of more practice tools, Time Driven Activity Based Costing is developed. TDABC simpler, lower cost, and more speed of applying. TDABC enable measuring and managing as sustainable of costs and profits of the firms; customer, product also many factors like orders at the bottom level, therefore allows more effectively managing the institutional performance. In these paper; at he competition conditions of today’s being accepted as a effective method for supplying highly importance true cost information; Time Driven Activity Based Costing that more useful forms of Activity Based Costing method; explained and exposed how to use as a tool for creating profit focused organization.
Source: SSRN Electronic Journal
Author: Rıfat Yılmaz
Institution: Bilecik Şeyh Edebali Üniversitesi
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2184102837