Costing system design and honesty in managerial reporting: An experimental examination of multi-agent budget and capacity reporting KU Leuven Universiteit Gent
Time-Driven Activity-Based Costing (TDABC) systems use time inputs and distinguish between the cost of resource usage and the cost of unused capacity to provide accurate cost information. Importantly, TDABC produces aggregate signals of unused capacity at the department level, which offers the potential for superiors to assess misreporting or slack creation during budgeting without knowing which subordinates contributed to the slack. In a ...