Application of time-based activity-based cost method in strategic management accounting techniques in a textile company

Today, mechanization and automation have become widespread as a result of increasing competition environment and technological developments. Therefore, it has become more important for managers to access cost information more quickly and accurately. In this context, some techniques have been developed in the field of strategic management accounting. This study, in which time-based activity-based cost method which is one of the cost calculation techniques was applied in a textile enterprise within the scope of strategic management accounting, was applied in a textile enterprise carrying out yarn, warping, sizing and weaving activities in the organized industrial zone in Merkezefendi district of Denizli province. The aim of this study is to investigate the applicability of time-based activity-based cost method and activity-based cost method by using accounting data of the enterprise, in which the application was conducted, in 2018 and to compare the results. In this context, cost calculation system was established firstly according to the activity-based cost method, then according to the time-based activity-based cost method, and the results were compared. In this study, case study method was used. This method is widely preferred in cost and management accounting studies and provides the opportunity to apply cost calculation methods and evaluate the results in the enterprise where the application is made. In this context, observations were made at the enterprise and interviews were conducted with managers and employees. The application was conducted by evaluating the information, which was obtained from these observations and interviews, and the accounting data together. As a result of this study, it has been determined that both systems can be applied in a textile enterprise; ZEFTM method provides more accurate cost information than FTM method and unit product costs also change. The main reason for this is that ZEFTM method calculates the idle capacity costs of the enterprise and reflects them to the unit product costs. Therefore, the unit product costs of an enterprise with idle capacity are calculated less in ZEFTM method than in FTM method.