Summary |
This book introduces time-driven activity-based costing (TDABC), an easier and more powerful approach for measuring cost and profitability that exploits the data now available from ERP systems. With TDABC, managers spend less time and money gathering and maintaining data and more time addressing the problems that TDABC reveals-such as inefficient processes, unprofitable products and customers, and excess capacity.
The authors show how managers can build a TDABC system by answering two fundamental questions:
• How much does it cost to supply resource capacity for each business process in our organization?
• How much resource capacity (time) is required to perform work for each of our company’s transactions, products, and customers?
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