Managerial Accounting Report: Time-Driven ABC for Sonic Healthcare

This report, written from the perspective of a graduate consultant, examines the effectiveness of the Time-Driven Activity-Based Costing (TDABC) system, focusing on its application within Sonic Healthcare, a leading Australian healthcare provider. The report begins with an overview of Sonic Healthcare's operations and then delves into the specifics of the TDABC system, highlighting its features and advantages over traditional and ABC costing methods. It emphasizes TDABC's ability to provide greater visibility into capacity usage, improve efficiency, and anticipate future resource demands. The analysis further explores how TDABC can help Sonic Healthcare minimize production costs, gain a competitive edge, and make informed decisions regarding customer base expansion, cost reduction, and service improvements. The report concludes that TDABC is a superior model, providing cost-effective and accurate information, making it highly suitable for Sonic Healthcare's strategic goals.