Journal The American Society Of Nephrology -Myassignmenthelp.Com

Question: Discuss About The Journal The American Society Of Nephrology? Answer: Introduction A significant role is played by cost accounting in those business organizations which undertake manufacturing operations. The process of cost accounting includes classifying, analyzing, allocating, recoding and evaluation various option regarding course of action so that organizational cost can be controlled. Controlling the cost helps the organization to enhance profitability by reducing the operational cost. There are different kinds of costing systems which are preferred to be implemented by the companies which includes traditional costing system, Activity based costing (ABC) system and other. Another form of costing system is being implemented by the organizations in the contemporary situation, this is known as the Time Driven Activity Based Costing (TDABC). However according to (ker Ad?gzel 2016) one of the most popular method among the organization in relation to cost accounting is the traditional costing method. It has also been stated by Kaplan et al (2014) that the organiza tion are subjected to significant shortcomings in the contemporary period in relation to the application of the Traditional method. Therefore the TDABC had been developed by Robert S. Kaplan and Steven R. Anderson in 2004 for the purpose of addressing the difficulties which are initiated through the Traditional method. The primary objective of the report is to evaluate and analyze the different aspects of TDABC and also suggest whether the implementation of TDABC is suitable or not. According to Cooper (2017) the management consultancy firm has the responsibility of suggesting the client an appropriate approach towards TDABC. The report also suggests features, comparison and description in relation to the diffident types of cost accounting methods (Weygandt, Kimmel Kieso 2015) Client Background Biopharm Australia is a pharmaceutical organization which operates in Australia. The organization has been established in the year 1980 (Schnsleben, 2016). The organization indulges in manufacturing of sulfated polysaccharides which is used for the purpose of making veterinary medicine. These products are used for treating joint diseases in dogs and horses which are non-infectious in nature (Zeng et al., 2014). The organization is licensed through Therapeutic Goods Administration (TGA) who is the official regulator of veterinary goods. In addition the company also indulges in the manufacturing of other supplies in relation to animal treatment (Cohen, 2014). The organization has to undergo large scale manufacturing process in order to make profit in the competitive market (Bing.com, 2018). Description of TDABC It is depicted through the above description that the process of TDABC has been initiated for the purpose of addressing the short coming of the traditional costing system and the ABC. With respect to the functioning of TDABC the assignment of cost resources is done directly in relation to cost objects through the support of two kinds of estimates. The first estimation is in relation to the cost per time unit towards resources supply capacity with respect to cost activities (Warren Jones 2018). The second estimation is in relation to the time units needed towards performing an activity (Johnson, 2014). There are six steps which have to be complied with in relation to the calculation of cost activities in TDABC. These steps are as follows 1st step- here the activities and services are identified 2nd step- here the total cost in relation to each resource group is estimated 3rd step- here the practical time capacity in relation to each resource group is done 4th step- here the unit cost of each resource group is calculated 5th step- here the time required for every activity is estimated 6th step- here the unit cost is multiplied in relation to every resource group to the estimated time in the activity Features of TDABC In relation to TDABC there are some specific features as it is a particular approach of costing. These are as follows With respect to the process of TDABC it is actually easy for the accountant in order to do the assignment of cost towards the different manufacturing activities. Moreover, the time required in relation to the process is significantly less (ker Ad?gzel, 2016). TDABC can be very easily integrated within the companys available or existing Enterprise Resource Planning (ERP) system which is a huge boost to the process of manufacturing within the firm (Siguenza-Guzman et al., 2014). Through the help provided by the TDABC the monthly income is accurately generated by the production managers in relation to operations (ker Ad?gzel, 2016). The system of costing with respect to TDABC is regarded is having more efficiency as compared to the traditional costing system and the ABC as the manufacturing capacity in relation to the firm is properly utilized by the system (Siguenza-Guzman et al., 2014). Where the TDABC is implemented the production manger is able to effectively forecast the resource demands (ker Ad?gzel, 2016). Fast as well as inexpensive changes can be brought to the costing model through the implementation of TDABC (Siguenza-Guzman et al., 2014). Although small but significantly important sources of information is made available through the integration of TDABC to the managers which is required to address different problems arising from the process of manufacturing (ker Ad?gzel, 2016).. The methods can be implemented with easy and can be put to use in any form of industry (Siguenza-Guzman et al., 2014). The features which have been discussed above clearly depicts that the system of costing is superior to other forms of costing systems. Distinction According to Hardan Shatnawi (2013) there are major differences which the TDABC has is relation to the traditional costing method. In the same way the TDABC also have significant differences with ABC approach. The difference is depicted though the following discussion TDABC v ABC approach In response to an inaccurate method of the American Accounting Standards the ABC had been brought into the system. The major area of concern which is raised in relation to ABC is that its approach considers what has been done instead of which are the expenses (Rajabi Dabiri, 2012). To the contrary the primary area on which the TDABC works is in relation to identifying each departments or process capacity of allocating cost to the capacity of resource group over the cost objective derived from time needed for each activitys performance. With respect to the ABC, different types of cost drivers along with the total cost associated with activities can be depicted. The total cost which is related to an activity is considered as the cost pool and in addition the features through which the performance and cost of cost activities is affected is the cost driver feature of ABC (Hardan Shatnawi, 2013). When it comes to TDABC, where a decline is work demand has been identified in relation to a specific department, the organizational managers are provided support through the process of TDABC towards making an estimation of released quantity of resources (Hill et al., 2015). Therefore through the above discussion it can be implied that various characteristics of cost can be captured by the TDABC with support from the time equation. To the contrary under ABC approach the assignment of indirect cost is done towards the cost activities and subsequently on the cost objectives. Additionally with support from the cost drivers the allocation of indirect expenses is done on the cost activities. The TDABC approach helps the developed equation towards the assignment of time and cost in activities by emphasizing on each activities objective (Emblemsvg Bras, 2012). However where ABC and TDABC are involved the six stage process is used to carry out the calculations. Thus is evident that both the ABC and TDABC are entirely different. Traditional Costing Approach v TDABC The primary point of distinction between Traditional Cost Approach and TDABC is that the former is much more simple as compared to the latter. On one hand with respect to the TCS there is a need of used up resources and cost objectives towards the evaluation of different activities and in the other had when it comes to the TDABC the activities used un cost objective depends upon various cost activities (Rumble, 2012). An organization uses the TDABC system where there is a presence of high number of overheads as well as high amount of miscellaneous products. A need for accurate and highly reliable method in relation to operational cost management exists. On the other hand when it come to the TCS a single overhead pool is used which cannot be utilized for actual cost calculation. The process of TCS includes random cost objects allocation based on machine or labor hours (Cooper, 2017). The situation acts a primary difference between the two systems. The TDABC provides for the inclusion of identifiable products which include the arbitral collection of expenses like depreciation, salaries and others which are identifiable in the TCS. Moreover when to comes to TCS after the production of products have been completed the cost of production is derived by the accountants. On the other hand in TDABC pocket range and feedback from customers is used to determine the production cost. The cost of production is reduced through the implementation of TDABC which enhances the productivity (Cohen, 2014). TDABC application and Suitability The following discussion depicts the suitability of the TDABC in relation to manufacturing companies. One more primary advantage of applying the TDABC is the difference between capacity supplied and capacity used. The way of calculating the time required for continuing different activities and to establish a connection with clear calculation of cost giver strong insight to the mangers towards cost management. Thus in relation to this unused capacity can be reused and the organization may increase its work load (Rumble, 2012). The creation of proper insight is done by the application of TDABC in relation to various cost activities done through the company. A significant role is played towards the strategic decision making process by TDABC for the best results in manufacturing process as compared to the cost associated with the TCS. Thus where TDABC is not present organization would not be able to evaluate the effect of single activities on profitability. In addition the management is helped by the approach towards making an accurate and informed decision. The organization is able to identify complex process of businesses with TDABC support which make negotiation which customers possible (Carli Canavari, 2013). All areas of enterprise resources planning are covered by the system of TDABC and thus every transaction of the company is followed by accurate cost. Therefore an precise and correct picture in relation to the process of distribute cost to particular customers is shown by the approach (Hooze, 2013). The TDABC model can be updated easily with respect to the requirements of the company. The identification of cost opportunities is supported by the model of TDABC which leads to the enhancement of the overall process of production and well as the production capacity of organizations (Namazi, 2016). Form the above discussed point the feasibility of the TDABC is clearly shown. Where the TDABC is implemented in Biopharm Australia it will enhance the companys output and the production process through production cost reduction. The management of the company will be therefore provided with a proper insight in relation to companys nature of cost. Thus it can be evidently stated that the approach woud be suited to Biopharm Australia. Conclusion It is depicted through the above discussion that the process of TDABC has been initiated for the purpose of addressing the short coming of the traditional costing system and the ABC. The TDABC approach helps the developed equation towards the assignment of time and cost in activities by emphasizing on each activities objective. The TDABC provides for the inclusion of identifiable products which include the arbitral collection of expenses like depreciation, salaries and others which are identifiable in the TCS. An organization uses the TDABC system where there is a presence of high number of overheads as well as high amount of miscellaneous products. A need for accurate and highly reliable method in relation to operational cost management exists References Bing.com. 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