Abstract:

The development of technologies used in production has changed the components of product cost in such a way that direct labor costs decrease while manufacturing overhead costs increase. As a result, the product cost calculated with traditional cost systems has begun to be examined. According to the time-based activity-based cost system, which is one of the modern cost and management accounting techniques that enables manufacturing overhead costs to be determined more accurately, it is based on the assumption that the cost of the products is determined based on the time the activities are carried out during the production of the product. Costs are allocated on the products as much as the time the products benefit from each activity, and therefore product costs are determined according to production times. In this study, it is aimed to investigate whether there is a change in product costs according to TDABC system and product cost calculated consistent with the existing cost system in a manufacturing company that produces multiple products. It was concluded that product costs are lower in the TDABC system. It is expected that the study will contribute to the development of existing knowledge in the literature regarding the TDABC system with this application.

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