Implementation of time-driven activity-based costing in weaving service company
LTReikšminiai žodžiai: Cost management; Activity-based costing; Time-driven activity-based costing; Weaving services.
ENThe feasibility of the application of the Time-Driven Activity-Based Costing (TDABC) method have been investigated in practice for a while now. However, there has been no research conducted in companies providing weaving services. The object of the research is the implementation of TDABC system. The aim of the research is to assess the process of implementation of TDABC in weaving service company. The paper uses cases analysis as a research method. The implementation of TDABC required different measures, while different interviews were carried out and historical data was used. The project team for TDABC implementation was created and the plan of TDABC implementation was prepared. In order to have smooth implementation of TDABC it was revealed that it is critical to evaluate challenges encountered by enterprises starting to apply the TDABC system. The main challenges which are encountered by the enterprise in the course of installing the TDABC system appeared to be: major resistance from the staff was encountered when recording the duration of each particular function. The core advantages provided by the TDABC system appeared: the analysis helped the enterprise identify the processes which should be improved by decreasing the factual time of the service for the cost drivers. The profitable products were disclosed. Herewith, the additional unused capacity was revealed. [From the publication]
