Comprasion of time-driven activity based costing system and activity based costing system: Application of a manufacturing enterprise

Technological advancements along with widespread mechanization and automation in enterprises have changed the cost structure of businesses; it has led to increase the ratio of manufacturing overheads within total costs. Thus, using accurate cost information in decision making processes towards businesses that want to ensure the effectiveness of managerial activities in terms of manufacturing overheads accurately calculating and accurately distributing products has become important. Activity-Based Costing (ABC) and Time-Driven Activity-Based Costing (TDABC) system are two methods developed in this direction. The objective of this study; to investigate and compare the results of the viability of ABC and TDABC systems in a manufacturing business. In this context, the exploratory case study method has been implemented in an business. Research results indicated that, both systems can be implemented in a manufacturing business and it has been concluded that TDABC system offers accurate cost information than ABC system.