Case Sanac

29 Pages Posted: 31 Jul 2005

See all articles by Patricia C. Everaert

Patricia C. Everaert

Ghent University

Werner Bruggeman

Ghent University - Department of Accountancy and Corporate Finance

Bruno Decreuse

University of Angers - Research Group in Quantitative Saving (GREQAM); Ecole des Hautes Etudes en Sciences Sociales (EHESS)

Date Written: July 12th, 2005

Abstract

The Sanac Case provides an excellent introduction to Time-Driven Activity-Based Costing. The case is based on a real Belgian company that struggled with the implementation of Activity-based Costing and soon discovered that the time-driven approach could better cope with differences in terms of services and logistics among the orders and customers than an ABC model. The wide diversity in the use of resources by the various customers made it difficult to trace and analyze costs in ABC, based on rates per activity driver. The case can be used to: - demonstrate the weaknesses of ABC in complex and dynamic environments; - illustrate the benefits of Time-Driven ABC as a tool for providing order and customer profitability information in complex and dynamic environments; - explain the concept of time-drivers in Time-Driven ABC.

Keywords: Activity-based Costing, Time-driven ABC

JEL Classification: M40, M10

Suggested Citation

Everaert, Patricia C. and Bruggeman, Werner and Decreuse, Bruno, Case Sanac (July 12th, 2005). Available at SSRN: https://ssrn.com/abstract=761124 or http://dx.doi.org/10.2139/ssrn.761124

Patricia C. Everaert (Contact Author)

Ghent University ( email )

Department of Accounting and Corporate Finance
Sint-Pietersplein 7
Gent, 9000
Belgium
32 9 264 35 00 (Phone)

Werner Bruggeman

Ghent University - Department of Accountancy and Corporate Finance ( email )

Bedrijfsfinanciering (RUG)
Kuiperskaai 55 E
Ghent, B-9000
Belgium

Bruno Decreuse

University of Angers - Research Group in Quantitative Saving (GREQAM) ( email )

Centre de la Vieille Charité
2, rue de la Charité
Marseille, 13002
France

Ecole des Hautes Etudes en Sciences Sociales (EHESS)

54, boulevard Raspail
Paris, 75006
France

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