AN ANALYSIS OF THE APPLICABILITY OF TIME-DRIVEN ACTIVITY-BASED COSTING IN ADMINISTRATIVE DEPARTMENTS: A CASE STUDY

Abstract

This paper presents the results of a research that aimed at studying the applicability of time-driven activity-based costing (TDABC) in administrative departments in a company located in the metropolitan area of Belo Horizonte/MG. The research was qualitative and exploratory and it was carried out during the first semester of 2009. Four different techniques were used do collect data: semi-structured interview, non-structured interview, documental analysis and direct observation. It was verified that the TDABC seems to adequately represent the costs of the administrative departments. The results of the empirical research allowed the identification of some TDABC benefits presented by Kaplan e Anderson (2004; 2007a), such as the easiness of using the time equations with purpose of modeling the complex activities like the ones performed in the studied departments. It was possible to measure the unused capacity in the studied departments. However, some difficulties were perceived, such as the difficulty in estimating time equations for non-structured activities. Difficulties like this one have already been reported in the literature.