TimeTech Costing Methods and the ABC Pilot

Student-led · Reconcile absorption- and marginal-costing profit, and assess a two-product ABC pilot

Level：Operational Duration：about 100 min Points available：10 Agent roles：6

TimeTech's problem is not to find a single costing method that can serve every purpose, but to return external reporting, internal contribution analysis, product cost attribution and activity-based budgeting to their respective uses. You will need to gather evidence from finance, marketing, production, technology and an external consultant, rework the original profit comparison, test whether the T-200's costs are understated under traditional machine-hour allocation, explain how activity pools and cost drivers support ABB, and propose a governable, exit-ready ABC pilot.

Start learning

The question

The current system collects fixed manufacturing overheads on a fairly coarse production basis. Management needs to review the 2024 profit difference between absorption costing and marginal costing, and to judge whether activity-based costing should be introduced in the 2025 two-product environment.

Company background

TimeTech Ltd. is a smartwatch manufacturer with an established product, the T-100, and plans to launch a more technically complex, high-end product, the T-200, in 2025.

Techniques

成本性态、利润表与存货勾稽传统分摊、ABC 与产品盈利方法用途与管理决策实施治理、风险与控制证据获取与专业沟通

Who it suits

Recommended for learners who already have a grasp of cost classification, inventory measurement and the basic profit statement, and who want to practise choosing the right costing basis, applying ABC and communicating with management.

All courses

Home