Dissertation Title: The possibility of implementing the ABC/TDABC method in Higher Education Institutions. Case Study – Second Cycle Program at the Faculty of Economics

Authors: Edison ZACAJ

• Institution: University of Tirana,  Faculty of Economics, Department of Accounting

• Field of study: Accounting

• Publication date: 08.07.2026

• The dissertation is published in Albanian.

© Copyright: Edison ZACAJ

Published by the University of Tirana
Based on legal acts, regulations and policies of the UT

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ABSTRACT

This doctoral thesis was undertaken in the context of the growing need to improve financial management in public Higher Education Institutions (HEIs), where traditional costing methods are limited in accurately reflecting the distribution of indirect costs. Under pressure for transparency, accountability and more efficient use of public funds, the study aims to develop an advanced costing model, integrating the activity-based costing (ABC) method and its improvement, the time-based costing (TDABC).

The main goal of the paper is to build a practical and applicable model for universities, which increases the accuracy in the distribution of costs at the study program level. The methodology is based on a combined theoretical and empirical approach, through a concrete case study, where the main activities, the relevant resources are identified and “activity” and “cost pools” are built. The model focuses on the TDABC method by calculating the practical capacity and the cost per unit of time (CCR).

The study shows that the ABC/TDABC model increases the transparency and accuracy of costs by linking them to activities and resources. It enables the identification of unused capacities and supports strategic decision-making. The integration of TDABC simplifies the model and improves financial governance in HEIs.

Field: Accounting

Keywords: ABC Method, TDABC Method, Higher Education Institutions, time equations, practical capacity (CCR), operational efficiency

 

ABSTRACT

This doctoral dissertation was undertaken due to the growing need to improve financial management in public Higher Education Institutions (HEIs), where traditional cost accounting methods show significant limitations in accurately allocating indirect costs. Under increasing pressure for transparency, accountability and more efficient use of public funds, the study aims to develop an advanced costing model by integrating Activity-Based Costing (ABC) and its evolution into Time-Driven Activity-Based Costing (TDABC).

The main objective of the study is to design a practical and implementable model for universities that enhances the accuracy of cost allocation at the study program level. The methodology is based on a combined theoretical and empirical approach, through a specific case study in which key activities and relevant resources are identified, and "activity pools" and "cost pools" are developed. The model focuses on TDABC by calculating practical capacity and cost per unit of time (CCR).

The study demonstrates that the ABC/TDABC model improves cost transparency and accuracy by linking costs directly to activities and resources. It also enables the identification of unused capacity and supports strategic decision-making. The integration of TDABC simplifies the model and contributes to improved financial governance in higher education institutions.

 

Field of study: Accounting

Keywords: ABC method, TDABC method, Higher Education Institutions, timing equations, practical capacity (CCR), operational efficiency