Quality costing systems integrated with activity-based cost management systems on transportation sector: An application

Activity-based cost management systems that emerge because of the deficiencies of conventional costing systems in the intense competition environments companies operate are, one of the advanced costing systems that serve to company effectiveness. Its core philosophy is to focus on processes, to analyse the activities which composes processes and to determine the costs of the products or services due to activity costs. Another philosophy that the companies adopt in today?s global competition environment is continuous improvement based total quality management and quality costing systems concerning the cost view of quality practices. Within the context of this study, activity-based cost management systems and quality costing systems are theoretically analysed. At the research part of the study, these systems which have been analysed theoretically are implied at an international transportation company. The activity-based cost management systems which have diverse applications on manufacturing companies are implied to service sector also but there is still need for more implication examples that show the benefits of these systems. The logistics and transportation is one of these service sectors. Logistics and transportation sector is important because of their role on the economy and because these sectors are in relation with other sectors. Accordingly, the improvements that will be provided will not only affect the company itself but also the whole economy.The joint application proposal of the activity-based cost management systems and quality management systems at international transportation sector provides an example for the practice. Moreover, it states the differences of the application results of conventional costing systems and activity-based cost management systems and also it reveals coherent results for the benefits which have been emphasized theoretically.