TDABC (Time-Driven Activity-Based Costing) applied on an small textile manufacturing company

This article aims to check the pertinence or not in TDABC application (Time-Driven Activity-Based Costing) to identify the advantages and limitations of using the method in determine the manufacturing cost of a small textile manufacturing company. It was employed the descriptive methodology, in case study form, with qualitative approach. Initially, it was made a lecture review about this costing method, where it was highlighted aspects like concepts, steps to be followed to implement it, informational benefits derived and associated limitations. Then, it was presented the main characteristics of the case study realized via a brief description of the focused company and the followed steps to try to apply the TDABC method in the company. Latter it was casted the informational benefits prevenient from the study and stressed the associated limitations form the methodology used. From the theory point of view, the authors of this research defend that the TDABC cannot eliminate the subjectivity that is imputed in the Activity-Based Costing (ABC) by Kaplan and Anderson (2007). In case this small company, with only three sectors (cutting, seam and finish sewing), but with 31 different activities being realized in four products used in this research, the recommended approach by the TDABC can probably increase the subjectivity of allocated values to the products, instead of decrease, since it assume the "minute cost" of the sector where the products go through and not the consume of resources of equipment, machines or specific employees.