Time-driven activity-based costing : a simpler and more powerful path to higher profits / Robert S. Kaplan, Steven R. Anderson

Includes bibliographical references and index.

P1 : the fundamentals of time-driven activity-based costing -- Time-driven ABC: introduction -- Estimating process time: the role for time equations -- Capacity cost rates: the practical issues -- Implementing time-driven ABC models: launching a project -- What-if analysis and activity-based budgeting: forecasting future demands -- Fast track profit model: creating the new M&A process -- Enhancing business process improvements: applications for time-driven ABC -- P2 : Time-driven activity-based costing in action -- Kemps LLC: handling product, distribution, and customer variety -- Sanac chemicals: time equations to capture complexity in logistics processes -- Lowes home improvement: applying TDABC to high volume transactions -- Charles Schwab: using TDABC to accomplish a profit turnaround -- ATB financial: guiding profitable growth -- Global insurance company private client group: optimizing staffing in the insurance industry -- Jackson state university: making a business out of education -- Appendix a : transforming unprofitable customers -- Appendix b: frequently asked questions -- Index.

n the classroom, ABC looks like a great way to manage a company’s resources. But many executives who have tried to implement ABC on a large scale in their organizations have found the approach limiting and frustrating. Why? The employee surveys that companies used to estimate resources required for business activities proved too time-consuming, expensive, and irritating to employees.

This book shows you how to implement time-driven activity-based costing (TDABC), an easier and more powerful way to implement ABC. You can now estimate directly the resource demands imposed by each business transaction, product, or customer. The payoff? You spend less time and money obtaining and maintaining TDABC data—and more time addressing problems that TDABC reveals, such as inefficient processes, unprofitable products and customers, and excess capacity. The authors also show how to use TDABC to link strategic planning to operational budgeting, to enhance the due diligence process for mergers and acquisitions, and to support continuous improvement activities such as lean management and benchmarking.