Asia-Pacific Journal of Business (아태비즈니스연구)

KNU The Institute of Management & Economy Research (강원대학교 경영경제연구소)
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TDABC Application Case Study of Compounding Company: TDABC Application and Improvement of Profitability of Company K

컴파운딩 업체의 TDABC 적용사례 연구: K사 TDABC 적용 및 수익성 개선

  • Dae-Young Lyu (Department of Management Consulting, Hanyang University) ;
  • Sung-Wook Yi (Department of Business Administration, Hanyang University ERICA Campus)
  • 류대영 (한양대학교 경영컨설팅학과 ) ;
  • 이성욱 (한양대학교 ERICA 캠퍼스 경상대학 경영학부)
  • Received : 2023.05.30
  • Accepted : 2023.06.23
  • Published : 2023.06.30
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Abstract

Purpose - The purpose of this study is to find out how a company can do reasonable cost calculations in a simple way and establish profitability improvement strategies based on the results. Design/methodology/approach - In this study, a case that compounding company K applied TDABC was studied. A case study was conducted on the process of company K reviewing and applying TDABC and the process of implementing the cost calculation for each product by applying TDABC, and establishing a profitability improvement strategy for each product based on the results. Findings - Company K rearranged the production standard information of the compounding industry such as productivity and batch size of each product to apply TDABC. Cost calculation was performed for each product according to the revised production standard information. After the cost calculation for each product was carried out, Company K established a strategy to improve profitability of each product. The profitability improvement strategy was implemented in two ways: a cost reduction strategy and a product price increase strategy. As a result of the final strategy execution, the profitability of each product was improved. Research implications or Originality - This study found a reasonable costing standard in consideration of the specificity of the research target company, and applied it to cost calculation cost for each product. It contains the process of establishing production and sales strategies for each product based on the cost calculation results. It is expected that this case study will serve as a good reference material for establishing cost calculation and profitability improvement strategies in similar businesses.

Keywords

Acknowledgement

이 논문은 2022년도 한양대학교 학술연구비 지원에 의한 논문임(HY-2022-G)

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