Time-Driven Activity-Based Costing System - Report

Added on - 28 May 2020

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Running head: MANAGERIAL ACCOUNTINGManagerial AccountingName of the Student:Name of the University:Author’s Note:Course ID:
1MANAGERIAL ACCOUNTINGExecutive Summary:In this current report, the effective of Time-Driven Activity-Based Costing System(TDABC) is discussed from the viewpoint of a graduate consultant employed in a consultancyfirm.It is assumed that a main client of the consultancy firm is Sonic Healthcare, which is one ofthe leading healthcare service providers of Australia. It has been found that the TDABC systemis suitable to Sonic Healthcare due to greater visibility to capacity usage and efficacies andability to anticipate future resource demands. Sonic Healthcare has been facing competition,which necessitates the need for minimising production. The management of the organisationcould obtain an appropriate insight of the overhead costs, since it provides details about theactivities associated with providing both online and conventional services.
2MANAGERIAL ACCOUNTINGTable of ContentsIntroduction:....................................................................................................................................31. Description of Sonic Healthcare:.................................................................................................32. Explanation of Time-Driven Activity-Based Costing System (TDABC) and its features:.........33. Differences between traditional, ABC and TDABC costing systems:........................................54. Suitability of TDABC to Sonic Healthcare:..............................................................................10Conclusion:....................................................................................................................................11References:....................................................................................................................................12
3MANAGERIAL ACCOUNTINGIntroduction:In this current report, the effective of Time-Driven Activity-Based Costing System(TDABC) is discussed from the viewpoint of a graduate consultant employed in a consultancyfirm.It is assumed that a main client of the consultancy firm is Sonic Healthcare, which is one ofthe leading healthcare service providers of Australia. The report provides a brief overview of thebusiness operations of Sonic Healthcare. The second report deals with a closer investigation ofthe definition and features of TDABC. The latter part focuses on analysing the points ofdifferences between the three types of costing systems prevalent in the global business firms.Finally, the report sheds light on evaluating the suitability of implementing TDABC systemwithin Sonic Healthcare.1. Description of Sonic Healthcare:Sonic Healthcare is an Australian organisation providing pathology, laboratory servicesand radiology services with an employee base of around 32,000 (Sonichealthcare.com 2018).Ithas global presence in New Zealand, USA, UK, Switzerland, Germany, Ireland and Belgium. Itis one of the biggest medical firms listed on ASX and the strategy of the organisation in order toensure growth is through acquisition of cross-border firms. This is because the opportunity of theorganisation is limited to diversify further in the Australian market. The organisation hasgenerated nearly 60% of its revenue from business operations outside Australia.2. Explanation of Time-Driven Activity-Based Costing System (TDABC) andits features:It has been identified that there are certain issues involved with ABC system. In order tocover these loopholes, TDABC system is developed due to its cheap, simple and powerful
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