Journal of Administrative and Business Studies
Journal ISSN: 2414-309X
Article DOI:
Received: 10 March 2016
Accepted: 15 March 2016
Published: 26 April 2016
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  • Flexible budgeting under time-driven activity based cost as a tool in management accounting: Application in educational institution

Hamide Ozyurek, Yakup Uluturk

Published online: 2016


The rapidly changing competitive conditions, economic and technological developments have brought the diversity of firmís products and services. One-kind products and services were replaced by the production of a wide range of products and services. International firms are seeing that increased demand has led to different product markets. All these developments have also led to the international level of competition and made necessary to conduct new researches on management accounting with emphasis on planning, controlling and auditing. In this study, time and activity based flexible budget application is made by looking at a new approach to the budgeting process, which is one of the most important tools of planning. Purpose of this study is to show that time driven activity based costing system for education sector can be considered in the calculation of the costs and performance of the steps of taking advantage of future budget planning in education sector. For this purpose, time driven activity based budgeting was implemented in primary schools and kindergartens in Ankara operating within a private educational institution. The result of the study, in order to prepare a flexible budget depending on time, must have qualified persons and the need for cooperation of all employees in the implementation. During the calculation of the costs, to reach more accurate results due to consideration of idle capacity, findings show the benefits provide for large corporations having complex structure. This also proves that every customer is not profitable.