Research On Establishment Of Time-Driven Activity-Based Costing In Company JZ

Accurate cost information is essential for enterprise management,which is not only the starting point of cost analysis and profitability evaluation for investors,but also the basis of cost control,profitability improvement,and product pricing.Most of the domestic enterprise conduct cost accounting with the traditional cost method,which,however,is so subjective and rough to distribute indirect product cost.Therefore,results in the inaccuracy of cost summary.To deal with this issue.Professor Robert S.Kaplan develop Time-driven Activity-based Costing,also called TDABC.which not only improve the accuracy of indirect cost allocation,but also reveal and analyze the process cost of the production.TDABC is an improved method from traditional Activity-based Costing(ABC),which is feasible and practical compared with ABC.TDABC can also provide better suggestions for production capacity analysis and process improvement.This paper is focused on TDABC.It illustrates the development of TDABC,compares it to traditional cost method and Activity-based Costing(ABC)to figure out the advantages and its applicable conditions.By applying TDABC model in company JZ,analyzing the calculated results of traditional cost method and TDABC,Test if the TDABC method is more compatible and reliable than traditional methods in product cost accounting,profitability analysis and quality cost control.In the end of this paper,it give application strategy analysis in applying TDABC of Chinese military-industrial company.