Paper on Business Management

Added on - 28 May 2020

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Running Head: Business Management1Business Management
Business Management2Executive summary:This paper defines the meaning and other aspects of the time-driven activity based costing, and itfurther states the reliability of this method of costing in the private organizations. For preparingthis report and for analyzing the reliability of this costing technique, we use BHP Billiton as thecase study. It is the simple technique which helps the organization in achieving its target in moreeffective manner by removing the necessity of surveys and interviews for distributing the costrelated to resources to the activities. This technique of costing removes the faults of the originalmodel of activity based costing and also allocating the cost related to resources directly to theobject of the costs.
Business Management3ContentsIntroduction:...............................................................................................................................................3Client Information:......................................................................................................................................4About TDABC:..............................................................................................................................................5Features of TDABC:..................................................................................................................................5Differences between TDABC & other costing models:.................................................................................6TDABC & ABC:..........................................................................................................................................6Traditional costing system & TDABC:.......................................................................................................7TDABC for Client:.........................................................................................................................................8Conclusion:..................................................................................................................................................9
Business Management4Introduction:There are number of elements which creates unnecessary burden for the business unitssuch as providing quality of goods and services at lower cost to the consumers. These elementsincludes high cost related to information, high demand in context of services related to digital,economic slowdown, etc.. It becomes necessary for the management of the organization tounderstand the aspects related to costs and other participation of costs in the organization forevaluating the role of these elements in the organization and use these elements in the favor ofthe organization (Kaplan & Anderson, 2003).Cost management introduces various techniques, and one of the most reliable techniquesof the cost management is the Time-Driven Activity-Based Costing (TDABC). TDABC isconsidered as important technique of the cost management because it helps the businessorganization in the development of the exact cost information related to various activitiesperformed in the business unit. TDABC is not a new technique but it is the improved version ofthe original model of the costing that is Activity based costing (ABC). Business organizationsrequired this improved version because of the shortcomings of the original ABC model. Itbecomes difficult for the management to apply this traditional model of costing in theirorganizations as it involves the high cost in context of interviews and surveys of the people.
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