Analysis of the overhead costs in terms of strategic cost management

This study has been prepared to analyze the overhead costs in the view of strategic cost management. The aim of this study is to provide analyze of the overhead costs from the point of traditional and strategic cost management by explaining the structural changes which occur in production costs because of the improvement of production techniques and progresses in technology. As a result of increasing the lots of overhead costs in production costs and developing of production oppurtunities based on automation which cause the decrease of labour costs, it has become important to determine production costs correctly and to load on goods. In traditional understanding, while overhead costs are loaded to manifactures by taking direct labour hours as a basis; with mechanization direct labour hours go far from being the suitable key for delivery. In this study, overhead cost has been comparatively analyzed from the point of traditional and strategic cost management. As a result of this study, it is seen that traditional cost management understanding results with failure in new production techniques, determine overhead costs and loading to the goods. This study has been formed in three parts. In the first part, the explanations of basic concepts has been mentioned. In the second part strategic cost management which is a new approach in view of cost management has been explained. And in the last part, the study has been completed with the analysis of overhead costs from the point of traditional and strategic cost management. Key Words: Cost Management, Strategic Cost Management, Overhead Costs.