Korean Journal Of Construction Engineering -Myassignmenthelp.Com

Question: Discuss About The Korean Journal Of Construction Engineering? Answer: Introduction In the present scenario, it is imperative for the managers to have a strong control over the elements of cost. Hence, the managers need to be aware of the updated methods as it will help in tracking the changes that occur in the due course of time. The size of the firm is irrelevant in this regard because a business might be big or small but the element of cost and cost control should be a priority to attain a better result. In the present report, the major emphasis will be on TDABC as this system is an updated version and eliminates the frailties that are present in the traditional ABC system (Drury, 2013). The main purpose of the current study is to highlight the features of TDABC and the manner in which the new system will be implemented in BHP Billiton. Further, a differentiation will be done from the ABC model costing system shedding light on the selected company that is BHP Billiton. TDABC scores over other forms of costing method such as it is not time-consuming and is subject ive in nature. The main benefit that can be accrued is that simple estimates can be made and can be developed depending on the process of direct observation. Depiction of the Clients firm BHP Billiton is a pioneer in the field of extracting and processing of mineral, oils, etc with a presence of more than 60,000 employees located mainly in Australia and America. The sales of the product are worldwide and are done through Singapore, U.S, Houston, etc. The headquarters are located in Australia. The company operates as a Dual Listed Company with the presence of two parent companies that is BHP Billiton Limited and BHP Billiton Plc. The main strategy of the company is to retain low-cost, long-life and expandable assets that are diversified through geography and market (BHP Billiton, 2017). The operating model of the company enables the expertise to be leveraged across the business with a team that is multifunctional and link across the organization that helps in solving the problem. Further, the company strives to grow and is inconsistent with the strategy. The plan of the company is based on efficiency in terms of cost that is focussed on higher gains, an exploration tha t leads to a positive result and reduces the future risk, technology that enhances safety, cost and to unlock resources (BHP Billiton, 2017). A description of the TDABC and its features The prevalence of ABC system was the widely practiced mechanism that leads to data of product cost that helps in taking strong decision pertaining to pricing, improvements, and management of customer relationship. The main aim of ABC system is to allocate the indirect cost in such a manner that the result projects the demand or resource consumption of a specific companys cost objects. However, the traditional ABC is not free from defects. The main issue is that it depends on the survey of an employee of time spent on activities that are specified in nature (Venanci, 2012). In short, it can be commented that the traditional system of ABC is expensive in terms of set up, consumes time, maintenance difficulty and not flexible when demands modification (Horngren, 2011). However, the introduction of Time-Driven Activity-Based Costing leads to a strong enhancement in the process of ABC. The new and innovated process of TDABC embodies a huge amount of differences and issues by giving inform ation of high calibre without any constraints that were seen in the case of ABC costing. The main feature of TDABC is that it eliminates the difficulties of time consumption, the process of interview and survey to provide n explanation for the pools (Larry Christopher, 2012). The main feature of this method is that it has a major reliance on the time estimates and can be developed linked to direct observation. Furthermore, it accurately accounts for the difficulty that is present in the transactions of business by utilization of the time equations that precisely projects the involvement of time in a specified process, hence eliminating the need to consider various activities to take into consideration different cost linked with a particular activity (Oker Ad?gzel, 2016). Another major feature is that it lessens the processing time needed to churn through the day by utilization of the data feed from the system of ERP. The best trait is that it is easy to maintain, as well as an upd ate (Larry Christopher, 2012). With the utilization of time equations and backed up by ERP system, manager is in a strong position to update the capacity and cost rates. It is important to know that the business can thrive when the appropriate data management system is in practice. A strong support is needed when it comes to the entry of huge orders together with a strong check of the order at various stages. In this scenario, it needs to be noted that the method of ABC handles costing and has led to more opportunities and methodology among the products that range from a variety of custom and products (Robinson Last, 2009). The TDABC system helps in attaining a system of better information that encompasses at the revenues and the profit earnings by projecting the cost differences among various customers. As a matter of fact, the consumers having low demand are given more priority as compared to the customers having high demand (Drury, 2011). However, the application of the TDABC dwells on the time span that is required. This process attains a better position of having a better sum of a specific unit or the process in totality with the cost distribution to the group of resources. As per research, it is evident that TDABC can forecast the resource amounts that are released. It has the potential to limit the released resources (Oker Ad?gzel, 2016). The major benefit that accrues from this process is that is a total of a varied range of features. It needs to be noted that TDABC has some unique features such as the method is easy to understand and ensure preciseness. Secondly, it can be tagged as vibrant in nature as the model associates in a form that is efficient that is linked to ERP and the management of customer relationship. Thirdly, the mechanism has provided support in ensuring visibility during the process of capacity utilization. Fourthly, the biggest benefit is that the method runs on a monthly system that is effi cient in recording the business economy that is present. From this model, the company remains in a position to forecast the resource demand (Vanderbeck, 2013). It helps the organization to prepare the budget for the resource capacity that is linked to the forecast ability of complication, as well as order. Differences between Traditional costing system, TDABC and ABC Traditional ABC ABC TDABC It can be said to be the traditional mechanism of costing advantages that happens in the process of allocation of the cost of overhead to the production of individual unit (Needles Powers, 2013). Under this mechanism there are various overheads that can be traced. This mechanism rests on the method of costing that enables assessment of the different resources group 9 Needles Powers, 2013). This model forecast the scenario where the quantity matrix gets converted into the product overhead driver In this method, the cost of overhead is allocated to the different action through the resource driver Under this mechanism, every resource group is provided due emphasis. In this method, the manager are needed to distribute the overall cost f production to the linked products The cost driver for every action is perceived through this method. This method floats the concept of practical capability for every resource group In this method, accounting is granted to give away the cost that relates to non- manufacturing and deals in expenses of management (Needles Powers, 2013). This method derives at the decision of each activity by distribution of the overall cost activity from the activity driver amount 9 Needles Powers, 2013) It derives at the cost of every unit of the group resource by segregation of the cost amount to every unit through practical skills (Needles Powers, 2013). Evaluation of whether the TDABC is appropriate for clients company As per the ease of use and applicability of costing mechanism, it can be said that the method of TDABC can be used in the organization BHP Billiton. BHP is a pioneer in the field of extracting and processing minerals, the applicability of the method of TDABC would help the business due to the ease of operations. In contrast to another mechanism like traditional ABC and ABC, the model is more convenient and commercial in nature, therefore, it aids in deriving at a better position (Parrino et. al, 2012) . The current mechanism of costing will be convenient for BHP Billiton as it helps in distribution of the resources cost to the activities that helps in driving them to the cost. By having a strong assessment of TDABC it can be commented that such a model will help BHP Billiton in the distribution of resources to the cost objects by the implementation of the framework that will aid in deriving at the place of profit. For the purpose of cost computation, the resource capacity supply needs to be known as it will enable a smooth process for the model (Lee et. al, 2015). The processing department of BHP will be highly benefitted when the application of TDABC will be done. Moreover, it will aid in the determination of the cost that is used in resources, supervision, and technology. The major benefit that can be derived from this method is that it motivates the real process that is needed for the performance of the task of BHP Billiton. This model will help the organization to procure variations in huge number in contrast to the ABC model without paying any heed to the data storage demand, highlighting and materials processing (Lanen et. al, 2008). Once BHP Billiton will implement the model, it will enable the business to withstand various complications rather utilization of the improper model of ABC for the business activities. When it comes to BHP Billiton, the model will ensure that complex business data is preserved and stored in a strong manner that is varying in nature. Moreover, considering the nature of business of BHP Billiton, TDABC will enable enhancement of the complication related to the equation of time (Lee et. al, 2015). BHP Billiton will be provided adequate help and focus by the model of TDABC so that cost object can be projected with precision and in tune to the quantity of every unit that is related to the transaction that is ascertained in the department (Needles, 2011). When it comes to BHP Billiton, the introduction of the model of TDABC enables the company to preserve business information that is of complicated nature and to secure them in a manner that is flexible in nature. As seen in the case of BHP Billiton it can be commented that TDABC will enable the organization to enhance the time equation complication (Horngren Foster, 2008). Further, the mechanism of TDABC will enable the organization in the attainment of a huge number of variations without any complications that relate to the processing of capabilities, data, and storage, etc. Conclusion From the above discussion and report, it can be commented that the use of TDABC is manifold and eliminates the drawbacks that are present in other models such as ABC and traditional ABC. Under such scenario, BHP Billiton can use the method of TDABC and will help the company in the attainment of better results. Further, model ensures that the company will have a flexible and easy to understand the method in contrast to the conventional and complex model such as ABC (Shim Siegel, 2009). Further, from the above report, it is clearly defined that the model of TDABC is easier in terms of maintenance as compared to the traditional ABC model. The time equation asserts this fact. TDABC is easier in terms of maintenance and larger corporations can benefit to a considerable extent. The major key to the benefit of this model rests upon the capabilities vested in the ERP system. In short, TDABC helps in the more accurate projection of the under or over capacity by expression of the capacity in terms of a unit of time References BHP Billiton. (2017). BHP Billiton profile. Accessed January 2018 from https://www.bhp.com/our-approach/our-company/about-us Drury, C. (2011). Cost and management accounting. Andover, Hampshire, UK: South-Western Cengage Learning. Drury, C. M. (2013). Management and cost accounting. Springer. Horngren, C T Foster, G. (2008) Cost Accounting: A Managerial Emphasis. United States Edition Horngren, C. (2011). Cost accounting. Frenchs Forest, N.S.W.: Pearson Australia. Lanen, W. N., Anderson, S Maher, M. W. (2008). Fundamentals of cost accounting. NY: Hang Loose press. Larry M. W Christopher J. 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