The Application of Time-Driven Activity-Based Costing Method: A Case Study in an Albanian Restaurant
Abstract
Objectives: This study is focused on identifying activities and resources for a restaurant and then allocating resources into activities for achieving a better performance. Also, through this study are identified activities that are value added and which not.
Prior Work: TDABC was introduced to simplify ABC, by making time the main factor in the cost calculations so that it provided a more flexible method. The method remains the same, but TDABC employs time as a driver, which makes a difference.
Approach: For this paper a case study methodology is used to achieve the goal of the paper. This methodology helps to observe in detail the case and analyze activities for improving operational efficiency.
Results: Through this study we were able to identify all activities and resources involved in the process and identifying activities that add value and the ones that do not, which need improvements in the future in order to help with operational efficiencies improvements, menu pricing, customer demand and balancing cost-quality through managing costs.
Implications: This study is a work in progress regarding papers for TDABC and helps managers in cost management issues.
Value: The conducted study is to value for identifying activities and resources in a restaurant and deciding which are an added value and which not that shows areas for improvements and cost reducing for the restaurant manager.
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