A budget approach for efficient use of sources in SMES and the effect of this approach on business efficiency and product based costs

In this study a SME's budget, which can be applied by every producer SME, and cost calculations have been emphasized in order to contribute producer SME's having longer lifespans in today's conditions of high competition. In this study, it was observed that professional managerial employment in SMEs is extremely low and they are inadequate in budget and cost calculations. This SME budget and costing approach can be applied and designed as a management tool in a format that will help managers achieve their objectives. As an application purpose; according to the proposed budgeting method, it is aimed to calculate incomes and outcomes by proposing production unit, sales price, sales unit and to calculate every single products' product based costs into the production process. In the studies carried out, it is overemphasized on the interrelated studies of production targets (productivity), budget and product based costs. In product-based cost calculations, the distribution of overheads was made using the Time-Driven Activity Based Costing (TDABC) method. In consequence of the application study, the idle capacity was determined and the productivity results were obtained with the improvement studies. Finally, the findings were interpreted and the suggestions were made.