Journal of Engineering, Project, and Production Management, 2022, 12(2), 116-125
Time-Driven Activity-Based Cost Expansion Model
1Accountant,
Department of Finance, Changsha Normal University, 9, Teli Road,
Changsha, China. E-mail: 464064245@qq.com
2Professor,
School of Management, Shandong University, 27, Shanda South Road, Ji’nan,
China. E-mail: 12498303@qq.com (corresponding author).
3Professor,
School of Economic & Management, Changsha Normal University, 9, Teli
Road, Changsha, China.
Engineering Management
Received September 14, 2021; revised December 3, 2021; accepted December 12, 2021
Available online December 27, 2021
Abstract: The classic Cost-Volume-Profit (CVP) model cannot meet the needs of accurate decision-making under the new cost structure, and the time-driven activity-based costing can accurately and timely respond to rising overhead costs through accurate identification of time-related resource consumption. By relaxing the constraints of the CVP model, based on the time-driven activity-based costing method, this paper reclassifies and divides the cost behavior, constructs an extended CVP analysis model, and uses the operating data of Hunan Gongsheng Fengsheng Equipment Manufacturing Co., Ltd (GSFS) to conduct the empirical analysis. The results show that the extended model is reliable and effective.
Keywords: Cost volume profit analysis, time-driven activity-based costing, model construction, empirical analysis.
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Citation: Zhao, L. and Yang, Z. (2022). Time-Driven Activity-Based Cost Expansion Model. Journal of Engineering, Project, and Production Management, 12(2), 116-125.
DOI:
10.32738/JEPPM-2022-0011
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