Time driven activity based costing system and application of a manufacturing enterprise

In recent years, the cost structure of products and services of the enterprises which endeavor to proceed their activities in global competition environment has been changed. As a consequence of the technological evolution, machines have substituted laborer; thus labor costs of products have been decreasing in the favor of overhead costs. In this context, allocating overheads costs accurately to cost objects has become very important. Traditional costing systems had been developed for the requirement of traditional manufacture environment; therefore they can not provide accurate cost information under new circumstances. Inaccurate cost information produced by traditional costing systems leads enterprises faulty and precarious strategical management decisions. The main objective of this study is to explore feasibility of "Activity-Based Costing" (ABC) and "Time-Driven Activity-Based Costing" (TDABC) by using case study method in a marble manufacturing enterprise. Research indications have shown that both two modern costing systems can be performed in marble manufacturing enterprises; nevertheless TDABC offers more accurate cost information in comparison with ABC.