Falsification of Time-Driven Activity-Based Costing (TDABC) and Instead What?

Abstract. Aim: The main aim of the article is to conduct the falsification of TDABC. The secondary goal is to create a modified TDABC. The next objective is to find the ABC golden rule of resource allocation.
Research methodology: Falsification of reasoning is based on modus tollendo tollens of classical logic. Numerical examples are used as an equivalent of experiments in physics controlled with specific ABC models. Traditional and modified general TDABC and rate-based ABC models are applied.
Result of research: Three theorems falsifying TDABC are presented. The fourth theorem served to define the ABC golden rule of resource allocation. The immunizing stratagem enabled the creation of modified TDABC, called the general TDABC.
Originality/Value: Essential mathematical properties of TDABC and its implications for cost calculation, cost assignment to cost objects, and managing used and unused capacity are discovered. Three theorems as a falsifier of TDABC were derived from this model. The ABC golden rule of resource allocation was discovered. The modified, general TDABC was created. Using the golden rule of resource allocation, or determining the utilization coefficients of specific resources for complete utilization of practical time proved that traditional TDABC has become redundant.
Key words: falsifier, ABC golden rule of resource allocation,  cost of resources supplied per time unit, unused capacity, cost driver rate, cost of resources supplied utilization coefficient, practical time utilization coefficient.