Real Estate Market: TDABC Costing Method Application to Analyze Profitability by Customer Segment 

Abstract: Customer Profitability Analysis (CPA) combined with the costing method Time-Driven Activity-Based Costing (TDABC) can be key methods to assist companies in making decisions. This study applied the TDABC costing method to estimate the profitability by customer segment in a real estate rental sector. New rentals were identified as no profitable but required to compensate the investment in a new rental. With the results of the profitability analysis, it was possible to generate information that subsidized improvement actions, such as customer prospecting process restructuring and preventive inspection activities creation. Therefore, from Stobachoff’s profitability curve, it was possible to identify a level of vulnerability regarding the high level of subsidy in the rental sector.

Key words: real state market; customer profitability analysis; time-driven activity based costing; cumulative profitability curve

JEL code: M100