Research on Health Service Cost Accounting Based on the Application of TDABC

China’s health cost is increasing rapidly, the component of cost is complex, and the method of cost accounting is confusing. In order to better manage and control healthcare costs, we explore the use of Time-Driven Activity-Based Costing (TDABC) in this study, and describe the particular procedure of application in healthcare, track expenses incurred in the hospital, and then simply apply this method to a kind of surgery in West China Hospital as a case. In the end, we attempt to point out the advantages and adaptability of this method for cost accounting in hospital.