Implementation of resource consumption accounting in the furniture industry and cost estimation with artificial neural networks: İnegöl case

There has been a gradual increase in the intensive competitive environment and the challenging task of keeping up with the rapid changes in consumer demands and market conditions for businesses operating in all industries. As open systems, businesses should make the best decisions and formulate strong strategies to ensure continuity in today's conditions. Therefore, they should have accurate and reliable cost data reflecting factual information. Nevertheless, the traditional cost calculation methods have been inefficient in delivering accurate and reliable information to decision-makers due to the changes and developments brought about by today's world, failing to provide benefits for businesses in cost management. Therefore, traditional cost calculation methods are replaced by modern cost systems to ensure sustainability in the current competitive environment. The sole objective of the systems developed is to produce accurate, reliable, and useful information. The activity-based costing method developed to serve this purpose has led to the improvement of the resource consumption accounting method as a new cost calculation method due to the criticisms that it has been insufficient in suitability to the needs and the difficulty in implementation. The International Accounting Federation has also recognized the advantages of resource consumption accounting in its report. In addition, business decision-makers should plan and control their future periods to make the best pricing policies, minimize the risk of failure, and make some strategic decisions. Taking measures well in advance for circumstances that may arise in future projections based on cost data is as critical as accessing accurate data. Some forecasting methods should be employed to make predictions with low error rates. In this regard, the main objective of this study is to determine the applicability of the resource consumption accounting method in an enterprise an operating in the furniture sector and measure the usability of artificial intelligence-based neural networks in cost estimation based on the data obtained. In line with this objective, unit costs of a furniture company operating in Inegol were calculated using resource consumption accounting and activity-based costing methods based on the 2022 data. The success of the methods was measured and analyzed by comparing the two methods and the cost results calculated by the company using the traditional system. In addition, the applicability of artificial neural networks in cost estimation was measured by estimating the cost for the last three months of the year based on the unit costs obtained for the first nine months.