Comparison of source consumption accounting with time-efficient activity-based costing: An application in furniture production operation

The concept of trade, which is defined as any kind of trading in order to gain, is a source of livelihood that has been going on for centuries. How can this concept, which includes various industrial structures, be evaluated in a competitive environment. In line with this idea, resource consumption accounting has started to spread rapidly. In order to ensure that the authorities receive more accurate, reliable and consistent information, separate cost factors were used for all events occurring in the activities along with resource consumption accounting. While traditional cost system and activity based costing methods were used, ineffective capacity was transferred directly to the product cost. Resource consumption accounting has increased the adequacy of this method by accounting for the capacity used. In this respect, resource consumption accounting has become a method for the authorities to guide themselves. Resource consumption is integrated between accounting and resource pools and activity pools. As a result, providing information about the connections established between resource pools and cost pools destroys the non-value added activity of the management and leads to a decrease in the cost of manufactured products. Another accounting method that causes resource consumption accounting is time-based activity-based costing. In time-based activity-based costing, cost factor is used for time and it is emphasized that time is gain for companies. However, not all events in the activities match the duration. For this reason, cost object is not preferred in resource consumption accounting. In resource consumption accounting, different cost objects were preferred for the activity groups. Keywords: Traditional Cost Accounting, Activity Based Costing, Time Effective Activity Based Costing, Resource Consumption Accounting Page