An application of time-driven activity based costing method in the mold manufacturing industry

Abstract

Purpose: The purpose of this study is to analyze in detail one of the new cost approaches, time driven activity-based costing (TDABC), and in this context the cost of a mold manufacturing company is analyzed.

Methodology: For this research, we used primary and secondary sources. Direct observation, interviews with relevant departments and computer analysis methods were used as data collection method. A software and online database especially developed for the project was used in order to ease data collection.

Findings: Different than traditional volume-based cost methods, with TDABC, based on data analysis, we have identified idle capacities for each department. Which means, TDABC method can be used as an effective management tool as well as for financial reporting purposes.

Originality/Value: This paper aims to provide empirical evidence in the implementation of TDABC in project-based manufacturing industry, especially in mold sector and give a contribution to researchers in this field.