Customer Profitability Analysis with Time-Driven Activity-Based Costing: The Case Study of Polish Laboratory Diagnostics Market’s Enterprise

The article covers the customer profitability analysis using Time-Driven Activity-Based Costing in a case study of the polish enterprise operating on the laboratory diagnostics market. Time-Driven Activity-Based Costing provides the possibility to reveal unused production capacity or the potential of the current involved resources. It provides accurate information concerning involved resources and costs their use as well, allowing their precise allocation to specific services, products, distribution channels or customers. The purpose of the paper is the identification and analysis customer groups in researched enterprise, which allow for the verification of hypotheses posed in the case study. The first part of the article contains the characteristics of the researched company and describes the Time- Driven Activity-Based Costing method used to determine customer profitability. The primary aspect of the paper presents research results and cost analyses conducted in the case study using Time-Driven Activity-Based Costing. Authors structurise profiles of the researched enterprise’s customers and present the accrued income deriving from the service using a whale curve. The last part of the research contains the analysis of the chosen client from each predetermined in the study profitability group. Authors also provide the interpretation of characteristic costs from each group. Conclusions cover Time-Driven Activity-Based Costing as a measurement of customer profitability. Moreover, the article is the first - a comparative basis for the further research – of the three parts, planned by authors, will be crowned with the results of the research of another modern method of customer profitability analysis using cost accounting - Cost-to-Serve.