Abstract: This research aims to demonstrate the role of Time Driven Activity Based Costing (TDABC) technique in development of budgets, thus, increasing the effectiveness of planning, control and performance evaluation in light of the contemporary developments of the business environment in addition to identifying the most important elements that help to apply Time Driven Activity Based Budgeting (TDABB) technique in the economic entity and raise awareness level with their management the importance of this technique and the possibility of transformation from the traditional budgets systems to the time driven activity based budgeting. To achieve this, the researcher followed the analytical method by using the statistical questionnaire as a means to collect data from the research sample individuals from engineering, administrative, accounting, technical staffs and others, the research sample consisted of (60) persons and conducting statistical analysis of the data and hypothesis testing was the use of the Statistical Program (SPSS). The test and accept hypothesis after calculating a set of statistical measures such as the arithmetic mean, the standard deviation, coefficient of variation and weight percentage. This test was validated using the t-test of one sample. The test showed that the value of calculated (t) is greater than the value tabled (t) at statistical significance level (5%) and degree of freedom (59). The most important results were that the (TDABC) technique outputs are accurate cost information in the allocation of indirect costs which are inputs to the application of (TDABB) technique. In addition, the application of (TDABB) technique requires a set of components, including top management support and training courses for economic entity staff to promote the application of this technique and other components.