Speaker
Description
This study explores the philosophical concept of time and its application in the management accounting through the Time-Driven Activity-Based Costing method. Time can be the fundamental element for cost allocation over products, services, and periods. In the management accounting, time is the most common denominator used for allocating the costs. Our research presents various philosophical interpretations of time, from Plato’s metaphysical perspectives to Heidegger’s existential approach, and identifies the eternalism as the most relevant view to the Time-Driven Activity-Based Costing method. Additionally, the existentialist approach highlights the importance of the individual meaning, resonating with the firms' pursuit of profits within their operational objectives. The Time-Driven Activity-Based Costing method, developed by Kaplan and Anderson in 2004, simplifies the cost allocation by focusing on time as a singular driver, offering a more flexible and accurate alternative to the traditional Activity-Based Costing method. Our paper also includes a practical case study of a company, showcasing the method's efficiency in calculating the costs based on time estimates, improving the operational transparency, and the decision-making processes. This approach demonstrates the advantages of the use of the Time-Driven Activity-Based Costing method in the modern business environments, particularly for the optimization of the cost management and the resource allocation processes.
