The purpose of this article is to explore activity-based costing with its derivative, that is time-driven activity-based costing and fuzzy time-driven activity-based costing via some relevant ...researches and observe significance of this systems in sophisticated business environment. Activity-based costing is a costing system with two phases that track cost from activity to product. The emergence of activity-based costing is driven by irrelevance calculation of traditional costing system that cause information distortion. Therefore, activity-based costing emerges as a alternative problem solving of this distortion. But activity-based costing as a system has its drawbacks. These drawbacks try to be covered later with the emergence of model development of former activity-based costing. Through time-driven activity-based costing, activity-based costing that previously complex and expensive become simpler and more economic. Subsequently, through uzzy time-driven activity-based costing, calculation of time-driven activity-based costing that previously in-absolute and ambiguity become less. Through three tradeoff analysis, that is cost-benefit, complexity-simplify, and first-secondary, it is known that activity-based costing and its derivative still have a great significance in business environment that full of sophistication and recency.
In today's competitive environment, the analysis of activities is not just about looking at the overall report of profit and loss but more in understanding which of the activities add value and which ...are identified as wastes. This study examines the implementation of Time-Driven Activity-based Costing (TDABC) to analyze the operations of restaurants and also explores its validity as an approach for mapping the value streams of the operational activities. For this purpose, a case study is planned to reprocess both direct and indirect costs of a restaurant using TDABC. Thus, an observation process is performed to gather the relevant data, besides investigating the case restaurant's cost accounting system. In this paper, two analytical techniques (TDABC & VSM) are combined to identify both the true costs of the operational activities as well as distinguishing the non-value-added activities. The results have revealed that TDABC appears to be a very feasible approach for both setting the correct cost of operations in restaurants and mapping the source of value-added activities.
Summary
Time‐driven activity‐based costing (TDABC) is increasingly used to establish more accurate and time‐dependent costs for complex health care pathways. We propose to extend this approach to ...detect the specific improvements (eg, lean methods) that can be introduced into a care process. We analyzed a care trajectory in radiation oncology for breast cancer patients at major Canadian urban hospital.
This approach allowed us to identify the activities and resource groups related to the execution of each activity, and to estimate the execution time for each. Based on the model, we were able to extract financial data with which we could evaluate process costs. The total cost of the care trajectory was $2383.82 for 2015 to 2016. Out of a total of 1389 trajectories, only 268 were completed.
The implementation of TDABC gives users a clearer idea of costs and encourages managers to understand how they break down over the course of a care trajectory. Once these costs are understood, decisions can be made regarding resource allocation and waste elimination, enabling lean methods to be implemented. The result is better reorganization of work by allocating resources differently, optimizing the care trajectory, and thereby reducing its costs.
Objectives
The aim of this study was: (1) to adapt the time‐driven activity‐based costing (TDABC) method to emergency department (ED) ambulatory care; (2) to estimate the cost of care associated with ...frequently encountered ambulatory conditions; and (3) to compare costs calculated using estimated time and objectively measured time.
Methods
TDABC was applied to a retrospective cohort of patients with upper respiratory tract infections, urinary tract infections, unspecified abdominal pain, lower back pain and limb lacerations who visited an ED in Québec City (Canada) during fiscal year 2015–2016. The calculated cost of care was the product of the time required to complete each care procedure and the cost per minute of each human resource or equipment involved. Costing based on durations estimated by care professionals were compared to those based on objective measurements in the field.
Results
Overall, 220 care episodes were included and 3080 time measurements of 75 different processes were collected. Differences between costs calculated using estimated and measured times were statistically significant for all conditions except lower back pain and ranged from $4.30 to $55.20 (US) per episode. Differences were larger for conditions requiring more advanced procedures, such as imaging or the attention of ED professionals.
Conclusions
The greater the use of advanced procedures or the involvement of ED professionals in the care, the greater is the discrepancy between estimated‐time‐based and measured‐time‐based costing. TDABC should be applied using objective measurement of the time per procedure.
Although there are many studies in the literature that explain modern costing approaches including activity-based costing (ABC), the number of studies that present real life applications is very few. ...This is especially true for logistics and transportation applications. One of the main difficulties in land transportation companies is to determine and evaluate true cost of their operations and services. If used and implemented properly, ABC can be very helpful for transportation companies to determine cost of their operations with higher correctness. In this paper, an application of ABC to a land transportation company that is located in Turkey is presented in detail. In order to improve the effectiveness of the ABC an integrated approach that combines ABC with business process modeling and analytical hierarchy approach is proposed. It is figured out that the proposed approach is quite effective in costing services of the land transportation company compared to the existing traditional costing system which is in use.
Background: Considering the importance and position of the health sector in socio-economic development programs, it is necessary to be aware of the current situation and to recognize its issues and ...problems. Determining costs and the amount of profit or even loss in the health sector helps in managing costs. The purpose of this study was to evaluate the cost of common laboratory services and compare them with the tariffs approved by the Ministry of Health and Medical Education in the selected hospital of Tehran University of Medical Sciences. Materials and Methods: The present study was a cross-sectional and retrospective study. In this study, activity-based costing technique was used. The study population was the laboratory of the selected hospital of Tehran University of Medical Sciences. Data collection tools were information forms, software, interviews and direct observation. The analysis was performed using Excel 2016 software and finally, the cost price was compared with the approved tariff. Results: The findings indicated that the highest and lowest costs were related to the cost of manpower and energy carriers, respectively. The highest cost was related to the urine analysis test and the lowest was related to the sodium and potassium tests. Conclusion: The results of this study showed that the cost of conventional laboratory services in the selected hospital of Tehran University of Medical Sciences and the tariffs approved by the Ministry of Health and Medical Education in 2019 were different.
This study investigates the potential complementarity between ISO 9000 and Activity Based Costing (ABC). This is undertaken by examining associations between the extent of ISO 9000 implementation and ...the extent of ABC use and by examining the impact on organizational performance of the extent of ISO 9000 implementation in organizations that have adopted both ISO 9000 and ABC (ABC Firms) as compared to those that have only adopted ISO 9000 (Non-ABC Firms). Correlation analysis and a multi-group analysis in structural equation modelling (SEM) are employed using quantitative data from a cross-sectional mail survey of 601 Thai ISO 9001-registered organizations. The results indicate that there are significant positive correlations between ISO 9000 and ABC activities, and that the impact of ISO 9000 implementation on organizational performance is significantly stronger for ABC Firms than that for Non-ABC Firms. The results generate new evidence that advances knowledge of complementarity between ISO 9000 and ABC and the effects of ISO 9000 on organizational performance. The findings have significance for researchers evaluating the use of ISO 9000 and ABC in concert with other organizational initiatives and for practitioners who could consider the benefits of concurrent implementation of both systems in reviewing/designing performance improvement systems.
The cost of health is a recurrent topic that has generated much research, as it affects all of society. Both public and private agents need to know the real cost of treatments, services, and products ...for decision-making. This article aims to compare the use and research impact of two cost systems widely used in health: ABC and TDABC, which is an evolution of ABC. For doing so, a bibliometric review in Scopus and Medline was carried out encompassing the years 2009-2019. The results show a great increase in publications using TDABC, while publications on ABC stabilized. On the other hand, the TDABC articles presented higher research impacts in traditional and alternative metrics. Articles on TDABC are more frequently cited, published in better journals, and more visible in academic social networks. The findings suggest that scholars and practitioners should focus on TDABC rather than ABC for addressing cost in health for its simplicity, projection, and research opportunities.
To respond to the increasingly serious problems of a lack of workers, the need to control costs, and environmental issues such as carbon emissions, the footwear industry must change its production ...model to produce highly competitive products. This research aimed to solve the problem of the lack of workers and ameliorate environmental issues by using the activity-based costing (ABC) approach and the theory of constraint to effectively track related costs with the green production decision model (GPDM). This study used knitted footwear production as a case for effectively integrating the advantages of shoemaking and textiles with the ABC approach. These changes could help footwear companies to effectively control costs and increase productivity. From the literature and the sensitivity analysis of carbon tax rates, it could be reasoned that companies will have the motive to implement the low-carbon technologies with higher cost at the higher level of carbon tax rates.
The COVID-19 pandemic raised awareness of the need to better understand where and how patient-level costs are incurred in health care organizations, as health managers and other decision-makers need ...to plan and quickly adapt to the increasing demand for health care services to meet patients' care needs. Time-driven activity-based costing offers a better understanding of the drivers of cost throughout the care pathway, providing information that can guide decisions on process improvement and resource optimization. This study aims to estimate COVID-19 patient-level hospital costs and to evaluate cost variability considering the in-hospital care pathways of COVID-19 management and the patient clinical classification.
This is a prospective cohort study that applied time-driven activity-based costing (TDABC) in a Brazilian reference center for COVID-19. Patients hospitalized during the first wave of the disease were selected for their data to be analyzed to estimate in-hospital costs. The cost information was calculated at the patient level and stratified by hospital care pathway and Ordinal Scale for Clinical Improvement (OSCI) category. Multivariable analyses were applied to identify predictors of cost variability in the care pathways that were evaluated.
A total of 208 patients were included in the study. Patients followed five different care pathways, of which Emergency + Ward was the most followed (n = 118, 57%). Pathways which included the intensive care unit presented a statistically significant influence on costs per patient (p < 0.001) when compared to Emergency + Ward. The median cost per patient was I$2879 (IQR 1215; 8140) and mean cost per patient was I$6818 (SD 9043). The most expensive care pathway was the ICU only, registering a median cost per patient of I$13,519 (IQR 5637; 23,373) and mean cost per patient of I$17,709 (SD 16,020). All care pathways that included the ICU unit registered a higher cost per patient.
This is one of the first microcosting study for COVID-19 that applied the TDABC methodology and demonstrated how patient-level costs vary as a function of the care pathways followed by patients. These findings can be used to develop value reimbursement strategies that will inform sustainable health policies in middle-income countries such as Brazil.
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