The integration time-driven Activity-Based Costing (TDABC) and events approach: Their role in decisionmaking and their effect on tourism.

Abstract

The importance of using modern techniques in providing cost-effective information has been demonstrated. The current study reveals that the administration can trust these techniques via measuring the real-time product costs per each activity achieved. It copes with the problems caused using the ABC system in the treatment of industrial allocation of indirect costs and distribution to the product unit process. Activity-based costing (ABC) is then a costing method that recognizes activities in an organization and allocates the cost of each activity to all products and services according to the actual consumption of each. This model assigns more indirect costs (overhead) into direct costs compared to conventional costing. The price of the product per unit is calculated according to the integration of TDABC and the events approach in a factory. The outcomes of the current research showed that the combination of both an Events approach and Time-Driven Activity-Based Costing have an impact on the economic entity to distribute costs (TDABC). Time driven ABC reduces the amount of data required, and only needs estimates of: (1) the real-world capacity of dedicated resources and their cost, and (2) unit times for accomplishing transactional activities. The cost allocation to activities with higher accurate consequences by relying on the time spent on these activities and the share of each product from the time were studied.

Keywords

• Cost-allocation
• technology
• events
• ABC