2. Define Cost of Capacity Supplied
3. Define Practical Capacity
4. Determine Capacity Cost Rate
5. Estimate Time Consumption
If a process does not have too much
activity variation, TDABC can be
conducted easily, and vice versa, if a
process has a high variety of activity, then
the determination of accurate practical
capacity can be quite complicated.
To solve this problem TDABC builds the
time equations as shown in Figure 1
(source: Kaplan and Anderson. 2007,
modified).