ESCP Europe

This book shows how to implement time-driven activity-based costing (TDABC), an easier and more powerful way to implement ABC. It 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. In presenting their model, the authors define the two questions required to build TDABC : how much does it cost per time unit to supply resource capacity for each business process ; how much resource capacity (time) is required to perform work for a company's many transactions, products, and customers. They demonstrates how to develop simple, valid answers to these two questions.