Importance of Time-Driven Activity-Based Costing in McPherson’sLtd

HI 5017 Managerial Accounting
1

Table of Contents
Introduction....................................................................................................................................3
Suitability of the TDABC..............................................................................................................4
a) A description of your firm’s client.......................................................................................4
b. A description of the TDABC and its features.....................................................................5
c. In what ways TDABC is different from Activity-Based Costing and traditional costing
systems........................................................................................................................................7
d. A discussion on whether the TDABC is suitable to your firm’s client.............................9
Conclusion....................................................................................................................................11
References.....................................................................................................................................12
2

Introduction
The Assignment includes a brief about the McPherson’sLtd which is an Australian based
company working in the Health and beauty industries. The assignment consists of the Time
driven Activity-based costing details and the features of it. There is also a comparison of the
differentiation between the Time-driven ABC, ABC Analysis and Traditional costing systems
that are being followed by the organization. The difference between these costing techniques is
stated in the assignment. The assignment also includes the suitability of the Time-driven ABC in
McPherson’sLtd and the benefit that is going to be achieved by the implementation of this
technique. The assignment includes the factors that are being taken by different techniques in
order to fulfill the need of the organisations and the way the data is used to provide the results to
the company.
3

Suitability of the TDABC
a) A description of your firm’s client
The Macpherson’s is an Australian based company established in 1860 having headquarters in
South Wales, Australia. It is having many subsidiaries such as Cosmic International Pty Ltd,
Multix Pty. Ltd, McPherson’sHong Kong Limited, Footcare International etc. The company
provides various health, beauty, and wellness products along with the home appliances products
in Australia, New Zealand, Asia and another region internationally. It is registered in the ASX
and has around 10000 retail outlets in which the company is serving their products. It is having a
Market Cap of $ 120M and $104M of equity shares (Investsmart, 2018). The stock price of the
company has been fluctuating over the time. The substantial shareholders of the company are the
Investor mutual fund, Microequities Asset Management Pty Ltd and Dimensional Entities
having 22.43% of the holding.
4