TIME-DRIVEN ACTIVITY-BASED COSTING (TDABC) AND STRATEGIC DECISION-MAKING IN ECONOMIC ENTERPRISES – A CASE STUDY OF ALGÉRIE TELECOM, DJELFA AGENCY–

Abstract

This study aims to illuminate and evaluate the Time-Driven Activity-Based Costing (TDABC) method, recognized as a modern approach in cost accounting. The objective is to underscore its efficacy in bolstering strategic decision-making within economic enterprises by facilitating cost reduction, enhancing competitive advantage, and improving product quality. To substantiate this investigation, the TDABC methodology was applied within the commercial department of Algérie Telecom, Djelfa Agency.

Key findings from the study indicate that the TDABC approach yields more reliable and pertinent information for strategic decision-making within economic enterprises by incorporating time equations and emphasizing the concept of idle capacity. This, in turn, enhances the strategic clarity of cost trajectories and contributes to product quality improvement and competitive advantage development. Additionally, TDABC enables the reduction of service costs at Algérie Telecom, Djelfa Agency by identifying and excluding the costs associated with unused capacities (idle time) from service cost calculations.