Magazine article University Business

The ABCs of TDABC

Magazine article University Business

The ABCs of TDABC

Article excerpt

Universities face a conundrum: Funding for higher education is on the decline, but enrollment is at an all time high--how can they do more with less? One answer may be Time-Driven Activity-Based Costing (TDABC). It's a system to discern and analyze costs and compare this to what is driving demand. For example, a finance officer may know how much certain departments spend on which vendors, but not have the ability to align shared services (duplicate services or programs) between those departments. Robert Kaplan and Steven Anderson, creators of this costing model, claim TDABC accurately estimates cost and demand through measuring the unit cost of supplying capacity and the time required to perform a transaction or an activity.

Implementing a TDABC model will help universities take control of:

* Financial Reporting: Universities can reduce costs while gaining efficiency through financial planning with real-time budget visibility and consolidated financial reporting. They'll streamline cash-flow activities and optimize financial transactions.

* Cost Transparency: Schools will be able to gather insight into departmental activity cost details, which produce a more accurate and holistic representation of a department's overall cost, capacity, and consumption level. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.