Comparison of operational costing and welding consumption accounting methods: A case of a manufacturing management

Technological developments and changing market environment have forced businesses to seek new cost determination systems in order not to fall behind in competitive conditions. In these conditions, traditional costing systems cannot meet the expectations and needs of businesses. Therefore, the searches for new costing systems began in the 1980s. The Activity Based Costing (FDM) system that emerges as a result of these searches is a system based on activities. However, the fact that FDM is difficult, expensive and complicated way to implement has led many businesses to believe that this cost system is insufficient. For this reason, Resource Consumption Accounting, which is a combination of the Activity Based Costing system and German Cost Accounting (GPK), has been introduced. Resource Consumption Accounting is based on resources in cost distribution. It calculates the costs by separating them as fixed and proportional and does not include the unused capacity in the cost calculations by determining the idle capacity. Therefore, Resource Consumption Accounting provides more detailed, accurate and reliable information to business managers. In our study, we compared the costs incurred by applying Activity-Based Costing and resource consumption accounting in a ceramic manufacturing enterprise. Thus, the actual costs of the manufactured products were tried to be determined. When resource consumption accounting is applied to the enterprise, it is observed that 1% of the total expense consists of idle capacity and the total proportional cost is approximately 4 times the total fixed cost.When resource consumption accounting is applied to the enterprise, it is observed that 1% of the total expense consists of idle capacity and the total proportional cost is approximately 4 times the total fixed cost.When the products produced are examined, it is determined that the idle capacity difference occurs mostly in the floor tile.