Application of TDABC Systems and Their Support with ABMS Approach

Abstract

Business process simulations (BPS) are considered a relevant and highly applicable method of analysis. BPS allow analysis of business processes under different conditions. There are several approaches towards simulation of business processes such as discrete event simulations (DES), agent-based modelling and simulation (ABMS) or system dynamics (SD). This research focuses on ABMS approach towards simulation of business processes and its importance for simulation of costs using time-driven activity-based costing (TDABC). Using ABMS approach, active elements of the system are represented by software agents which are programmed to follow some behavioral rules and autonomously interact with each other. This is especially important for TADBC approach to simulation of costs as simulation of resources has a direct impact on activity durations which drives the costs in TDABC approach. We present a case study, where is shown, how important is a process flow and organizational perspective for simulation of process costs using TDABC approach. The required detail of business process simulation can be achieved through the use of ABMS approach. After that, we discuss other shortcomings of traditional business process simulation techniques which might have a significant impact on allocation of costs using TDABC and its simulations.