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ИД «Финансы и кредит»






International Accounting

The TDABB methodology in the management control of insurance companies

Vol. 20, Iss. 16, AUGUST 2017

PDF  Article PDF Version

Received: 26 January 2016

Accepted: 10 February 2016

Available online: 29 August 2017

Subject Heading: Managerial accounting

JEL Classification: G22, M41

Pages: 932–947


Ermakova N.A. Branch of Kazan (Volga) Federal University in Naberezhnye Chelny, Naberezhnye Chelny, Republic of Tatarstan, Russian Federation

Shakaramova A.A. Naberezhnye Chelny, Republic of Tatarstan, Russian Federation

Importance Due to the negative trend in reducing the number of insurance companies as a response of the insurance market to crisis phenomena, it is crucial to optimize management processes within insurance companies. It requires implementing efficient management control and creating reliable in-house information systems as a condition and a tool of efficient management.
Objectives The study aims to define the nature of TDABB (Time-Driven Activity-Based Budgeting) methodology or budgeting based on types of activities and time measurement on the insurance company case.
Methods In the study, we employ the integrated approach based on the budget method and activity-based costing (ABC-method).
Results We developed an algorithm of applying the TDABB methodology as a modern tool of management control in insurance companies. The approach integrates the budget method and the ABC-method in insurance companies, enabling to build a budgeting system, which is based on a radically different process organization of responsibility centers.
Conclusions When implemented, the developed methodology will contribute to efficient functioning of insurance companies under crisis phenomena in the national insurance market, and enhance their competitiveness in the international insurance market.

Keywords: insurance company, budgeting, management control, types of activity, time measurement


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