Posted: May 25th, 2022

Information gathering and processing capabilities


Kaplan and Anderson (2005) notes that activity-based costing (ABC) systems are not as effective in practice as they are on paper. Among the grievances that Kaplan notes with respect to ABC, the system is not very scalable, losing power as the company gets larger. The textbook version is usually a very simple company with a handful of activities, but in the real world companies can have hundreds of products, thousands of activities and tens of thousands of customers. This presents a challenge, because activity-based costing requires a substantial amount of information in order to be effective. Past a certain scale of organization, activity-based costing does not deliver a good return on investment because of the costs associated with gathering and analyzing this information. Kaplan wrote this in 2005, mind you, when perhaps information gathering and processing capabilities were somewhat worse than they are today. Certainly doing ABC manually is likely to fail to yield a healthy return on investment. Similarly, Kaplan also notes that it is complex and difficult to implement ABC. Even if today’s processing capability was brought to ABC, it would be a challenge to set up the systems to gather the needed information and again there is a cost-benefit element to this.

Don't use plagiarized sources. Get Your Custom Essay on
Information gathering and processing capabilities
Just from $13/Page
Order Essay


Kaplan prefers an adapted approach to activity-based costing that instead of assigning resource costs to activities and then to products or customer instead “managers directly estimate the resource demands imposed by each transaction, product or customer.” Two parameters are required: “the cost per time unit of supplying resource capacity and the unit times of consumption of resource capacity by products, services and customers.” He argues that this approach addresses several issues with ABC, including that it “provides more accurate cost-driver rates by allowing unit times to be estimated even for complex, specialized transactions.”

This approach is simpler, Kaplan argues, and it is an accurate reflection of costs. He argues the case that only two cost parameters are necessary, time or cubic meters, depending on the type of business. Where traditional activity-based costing may not be scalable, with appropriate software such as enterprise resource planning systems, this new approach to activity-based costing is scalable, removing one of the major issues with activity-based costing that Kaplan had identified.


Time-driven ABC, Kaplan argues, it closely tied with enterprise resource planning. Intuitively, this makes sense because enterprise resource planning simply focuses on making the right resources available at the right times. In part, it does this by carefully measuring the enterprise’s resources. In TDABC, the key resources are either time or space, so an enterprise resource planning system that measures these things with respect to either product, customer or transaction will inevitably be more effective. The two therefore work together to allow the enterprise to understand the input resources for each activity and schedule activities accordingly, but also to ensure that the right resources are in place through the ERP. The latter can, for example, allow products or customers with a low return on investment to be dropped in favor of those with a higher ROI, in order to facilitate better organizational outcomes.

TDABC is something that Kaplan argues would not have been possible in the early 1980s when he was developing the original concept for activity-based costing. The information systems could not have supported it. Today, however, ERP systems gather a large amounts of sophisticated data and this allows for success of TDABC to now be possible.


TDABC resolves a couple of issues of ABC. Well, ERP resolves to some extent the cost of acquiring information, though it must still be used and processed to implement in an activity-based costing system. The complexity of ABC as organizations increase in size is cited as a major drawback of the system, rather than any philosophical problem. TDABC does succeed in simplifying the measurement of data, if through no other mechanism than simply applying data that the organization already uses to the ABC concept, rather than seeking out new data. This lowers the cost and therefore should increase the return on investment from ABC to TDABC. Gilbert (2007) notes that Kaplan claims size does not matter in successfully implementing TDABC, in contrast to the more traditional form of ABC. It is interesting that Kaplan does not think a full-fledge ERP is necessary for the benefits of TDABC to be realized, since lower cost of information acquisition is one of the most obvious benefits.

TDABC does not change from ABC in that it seeks to provide managers with better information regarding costs so that managers can then make better decisions on how they run their companies, what products to produce, what customers and suppliers to work with and other such decisions. Both systems deliver similar outputs, though Kaplan prefers his newer idea to his old one.

Kaplan acknowledges that neither ABC nor TDABC takes into account what customers value. This can be a weakness of the system, because it might orient the enterprise’s managers to make decisions that do not play to the company’s strengths in the market. The company might actually make decisions that weaken its competitive position. So it is important to remember that the company needs to make decisions based not only on this internally-focused information but on external considerations as well, in order to be at its most effective, a fact that remains unchanged regardless of whether or not the enterprise has adopted TDABC.


Gilbert, S. (2007). Adding time to activity-based costing. Working Knowledge. Retrieved March 15, 2014 from

Kaplan, R. & Anderson, S. (2005). Rethinking activity-based costing. Working Knowledge. Retrieved March 15, 2014 from

Get Professional Assignment Help Cheaply

Buy Custom Essay

Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?

Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.

Why Choose Our Academic Writing Service?

  • Plagiarism free papers
  • Timely delivery
  • Any deadline
  • Skilled, Experienced Native English Writers
  • Subject-relevant academic writer
  • Adherence to paper instructions
  • Ability to tackle bulk assignments
  • Reasonable prices
  • 24/7 Customer Support
  • Get superb grades consistently

Online Academic Help With Different Subjects


Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.


Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.

Computer science

Computer science is a tough subject. Fortunately, our computer science experts are up to the match. No need to stress and have sleepless nights. Our academic writers will tackle all your computer science assignments and deliver them on time. Let us handle all your python, java, ruby, JavaScript, php , C+ assignments!


While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.


Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.


In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.


Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.


We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!


We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.


Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.

What discipline/subjects do you deal in?

We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.

Are your writers competent enough to handle my paper?

Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.

What if I don’t like the paper?

There is a very low likelihood that you won’t like the paper.

Reasons being:

  • When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills.
  • We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade.

In the event that you don’t like your paper:

  • The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge
  • We will have a different writer write the paper from scratch.
  • Last resort, if the above does not work, we will refund your money.

Will the professor find out I didn’t write the paper myself?

Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.

What if the paper is plagiarized?

We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.

When will I get my paper?

You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.

Will anyone find out that I used your services?

We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.

How our Assignment  Help Service Works

1.      Place an order

You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.

2.      Pay for the order

Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.

3.      Track the progress

You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.

4.      Download the paper

The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.

smile and order essaysmile and order essay PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET A PERFECT SCORE!!!

order custom essay paper

Expert paper writers are just a few clicks away

Place an order in 3 easy steps. Takes less than 5 mins.

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
Open chat
Need assignment help? You can contact our live agent via WhatsApp using +1 718 717 2861

Feel free to ask questions, clarifications, or discounts available when placing an order.