On November 25th and 26th took place in Óbidos, Portugal, the XXXII Plastics Conference.
Organized by APIP (the Portuguese Association for the Plastics Industry), this event gathers every year hundreds of employers and managers. As usual, the occasion turned out to be a valuable opportunity for sharing technical and management groundbreaking know-how.
Actio Consulting was once more invited to participate and delivered a presentation on Time-Driven Activity-Based Costing (TDABC).
TDABC is a costing methodology for allocating overheads that has been flourishing in recent years. Nowadays it is regarded as the most flexible, rigorous and beneficial costing model.
Contrarily to the traditional approaches in which the total amount of overheads is split among discrete drivers (such as the number of manufactured units), TDABC advocates that cost pools should be allocated to the correspondent resources according to their utilized capacity.
By doing so, TDABC gives managers the data they need to evaluate and compare the real profitability of each product family, each market segment or each process, while, at the same time, assessing resource utilization. That’s why it is more than just another reporting instrument and it is better described as a decision-making tool applicable to both services and industries.
In order to engage with the audience, Actio Consulting went beyond the obvious theoretical explanation and presented the roadmap for implementing a TDABC model, as well as a successful case study.