Comparison of resource consumption accounting by traditional and activity based costing methods and application in a service company

In today's world in which businesses are struggling to survive in a fierce competition environment with the internationalization of competition, the way to gain and maintain a sustainable competitive advantage is to obtain a reliable cost information. Accurate calculation of cost information supports strategic decisions of businesses. For this purpose, various costing methods are developed. The inability of traditional costing methods to provide accurate cost information has led to the development of an activity based costing method. Later, the activity based costing method was also faced to criticism in some ways, which led to the search for a new method. As a result of these searches, time driven activity based costing and resource consumption accounting methods have been developed. In this study, resource consumption accounting which is a combination of activity based costing and German cost accounting, was implemented in a private educational institution which is a service company. The obtained results were interpreted by comparing them with traditional costing method, with activity based costing and with time driven activity based costing methods. In this study, it has been determined what the idle capacity costs in the company, and these idle capacity costs were not allocated to the cost objects, therefore, more accurate, reliable and realistic cost information has tried to calculate.