Customer profitability analysis with time drivern activity based costing: A case study in an educational institution

Time Driven ABC is a simple system that is created to remove the shortages of Activity Based Costing and get better results by considering the time consumption of activities. The method needs only two parameters as the cost of supplying resources to activities and the time required to perform these activities. By this system, total amount of the time required for activities and the need for resources will be determined thus the amount of unused capacity and the difference between activity time consumption and required time to carry out activities will be determined. In this wise, the cost of the activities will be determined accurately, updated and sustained easily. By this way, it enables the use of correct and updated data for strategic decision making. The aim of this study is to apply customer profitability analysis in an educational institution and to determine the differences between Traditional ABC and Time Driven ABC. In this framework, a case study was applied. During the case study, interviewing technique was used to reach the data about the institution and its activities; and then related data is collected and analized to show how the Traditional ABC and the Time Driven ABC affected the results.