پاورپوينت Activity based costing system (ABC) & time driven activity based costing system به زبان انگليسي
Activity-based costing (ABC) is a costing method that assigns overhead and indirect costs to related products and services. This accounting method of costing recognizes the relationship between costs, overhead activities, and manufactured products, assigning indirect costs to products less arbitrarily than traditional costing methods. However, some indirect costs, such as management and office staff salaries, are difficult to assign to a product.ABC became a popular costing tool amongst manufacturing companies in the 1980s.
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•Activity Based Costing
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•Using TDABC metrics and key performance indicators in your business can help you see how much money your company spends on wasted time, lost value and outdated processes, and it can show you how to reduce these unnecessary expenses.
•TDABC gives owners of business alike a clear understanding of the actual cost of product production, delivery of service offerings and individual tasks performed inside their companies. To accomplish this, TDABC focuses on the relationship between time and cost measurement to determine costs for the products or services a company produces.
•Using TDABC, business owners can calculate the cost of one unit of time for an activity in the business, whatever that unit is. For example, a unit of time could be as small as one minute of performing a credit check on a client. For most service businesses and non-profits, however, that unit is usually defined as a client or a job.
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•The accuracy of TDABC calculations directly depends on the approach to calculation and how measurements are taken within a company.
•With traditional activity-based costing models, many businesses attempt to estimate time spent on particular activities by surveying employees regarding the amount of time they spend or would expect to spend on certain tasks throughout the day. For example, an individual working in a service business might report spending 45% of their time on Client A, 30% on Client B and 25% on Client C. Although this might appear like an accurate estimate of time expenditure, this employee’s reported time on work adds up to 100%.
•In reality, most employees (even the hardest workers), on average, only spend 80% to 85% of paid hours on revenue generating related tasks (this is called productive time or practical capacity). The other 10% to 15% of the time workers might spend in training, staff meetings, paid time off, transitioning between tasks, talking with co-workers, clarifying instructions, responding to email or handling other non-specific tasks.
•The difference between productive time and non-productive time is referred to as the utilization rate, which shows the amount of time employees generate revenue for the company. The utilization rate also reveals where margins shrink and profit loss occurs.
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