Healthcare Acronyms

Time-Driven Activity Based Costing

A methodology explored by Robert Kaplan and Steven Anderson in their 2007 book which expands upon Activity Based Costing (ABC)/traditional cost accounting and outlines what may be a more practical approach to implementation. Their book discusses two primary questions:

1. How much does it cost per time unit to supply resource capacity for each business process?
2. How much resource capacity (time) is required to perform work for a company's many transactions, products, and customers?