Creation of a time-driven activity-based costing model to the Administrative Head Department of Sonae

Abstract

In today’s increasingly competitive market, companies are focusing on improving efficiency and on restructuring their organization, turning it to efficacy. In this context, companies have available several models that can be implemented as the Activity-Based Costing, Activity-Based Management, Time-Driven Activity-Based Costing and many others. The aim of this thesis is to create a fitting costing model for the Administrative Head Department of Sonae, specifically for the Accounts Payable and Business Support Department. In the first part, results of a comparative analysis of two important and supposedly more appropriate to this situation costing models, Activity-Based Costing and Time-Driven Activity-Based Costing, are presented. As a result of the analysis and of the expectation of the client, the best model to be used in this case study is the Time-Driven Activity-Based Costing Model. Secondly, it will be analyzed the best form to apply the chosen model to the current case study, using not only secondary research but also primary research as interviews and meetings. Consequently, it will enable the creation of a personalized Time-Driven Activity Based Costing model according to the characteristics of the company. To conclude, the last part of this thesis will provide a discussion on the model created, its limitations and recommendations for further improvements. It is also important to refer that the model developed is not a prototype that can be applied directly in other organizations, although the methodologies and techniques used and developed can be used as indicative for similar companies.

Date of Award	8 Nov 2014
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Rute Xavier (Supervisor)