An investigation on the effects of activity-based costing to manufacturing costs: An application in a forest products manufacturing company

Currently, in accordance with the developing technology and changing human needs, more than one product is produced in production enterprises, and the correct distribution of the resulting costs to these products is an important factor in pricing decisions. As a result of changing production systems, traditional cost systems are not sufficient and the costs cannot be determined correctly. One of the new methods used to accurately determine costs is claimed to be the activity-based cost system. In this study, the literature was reviewed, the definition, shortcomings, advantages and application method of the activity-based cost system were explained and then compared with the traditional cost system. At the implementation stage, both the traditional and activity-based cost system are applied to a product group with high added value using the case study method in a business producing forest products, and the results achieved are interpreted by comparing.