Activity-based budgeting and an implementation in a manufacturing company

The concept of Activity-Based Budgeting (ABB) is a relatively new phenomenon in cost and managerial accounting literature. It covers the budgeting concepts and methodology as well as costing and managerial affairs of businesses. Its aim is to prepare a budget according to Activity-Based Costing and Management. It gives businesses the opportunity to track their business strategies in their budgets. The research problem of this study considers determining the benefits of Activity-Based Budgeting implementations. In this respect the objectives of this study can be stated as: a) Giving full understanding about traditional budgets and their implementations. b) Explaining in detail the activity-based approaches. c) Giving in-depth explantion about Activity-Based Budgeting (ABB). d) Giving cases studies of all over the world in that ABB had been fully implemented. e) Implement ABB in a Turkish company. Numerous articles and books were searched in electronical data bases, online bookstores and university libraries which are located in Netherland, United Arab Emirates and Turkey . Dissertation is divided into four chapters. Chapter 1 is related with traditional budgeting. Activity-Based approaches, which are called Activity-Based Costing and Activity-Based Management, are explained in chapter 2. Third chapter is related with ABB. Case study is in chapter 4 which is a limited implementation of ABB in a Turkish Company. Within this framework, the results of the study show that the ABB is a new, useful instrument for every size of company. It can be and also have to be implemented in turkish companies for running the company in an effective and efficient way.