Applicability of activity based costing from contemporary costing methods in industrial businesses

Rapidly increasing production with the globalizing world has led to the creation of new production technologies. The increase in technology has led to some changes in cost structures. Instead of traditional costing methods that have been developed many years ago and are inadequate in today's world, businesses need a method that effectively plans and guides their future and helps them make decisions as well. The Activity Based Costing method enables the establishment of activities that create and do not create added value and thus attract the attention of enterprises to activities that create added value. In this study, first of all, the modern costing methods developed for the changes in the production environment starting from the traditional costing method will be explained. Finally, activity-based costing method will be discussed in detail, its applicability in industrial enterprises will be investigated and the study will be finalized.