ORGANIZATIONAL AND METHODOLOGICAL ASPECTS OF TIME-DRIVEN ACTIVITY BASED COSTING
ORGANIZATIONAL AND METHODOLOGICAL ASPECTS OF TIME-DRIVEN ACTIVITY BASED COSTING

Summary/Abstract: The specific organizational and methodological framework of Time-Driven Activity Based Costing (TDABC) includes calculation of two parameters. The first is the capacity cost rate. This rate is calculated as the quotient of the cost of the capacity supplied and practical capacity of the resources supplied. The practical capacity is expressed as the actual time of using the resources for the realization of a business activity. In order to adequately allocate the costs of resources to the cost objects based on the capacity cost rate, it is necessary to determine the time required for the realization of the business activities. The time variable is the basic cost driver and the second key parameter of TDABC. It is determined using time equations. Therefore, the general aim of this paper is to analyze the key organizational and methodological aspects of the implementation and functioning of TDABC, in particular, the ways and the importance of determining the practical capacity, but also the role, importance and the process of creating time equations.

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