Activity based costine system and in electro-mechanics industry an application

SUMMARY Today with the advancement of technology, the formation of common markets, the increase in number and variety of products and for the more certain advancement of firms it has become necessary to observe the income and expense dispersion and control of their budgets. The need for new costing systems has risen with the changes due to the increase in complexity of the production process. The existing product costing systems of today have become inadequate. A realistic cost formation is difficult eventhough costs are reduced due to many businesses applying a direct labour cost dispersion method. In production environments where advanced technologies are used, indirect costs are higher than direct costs and the relationship between costs and distribution has become uncertain. In the first part of the study, changes, fundamental costing systems, total cost, standard cost, standard cost fixing, total standard cost building, building of realized costs, marginal costs, activity based costs (ABC) of production systems which are increasing in complexity. In traditional costing systems costs are gathered in the department where they are formed. Cost control is in the form of comparing costs which are budgeted for and are in similar spending groups, with costs incurred in the departments. The following can be concluded from the philosophy of the activity based costing system (ABC) and the traditional costing systems when examined; in a business, activity uses up resources whereas the product or services use up activity. According to this system the distribution of the amount of activity consumed by products is taken into consideration when distributing general production costs over products. With this approach the functions of the administration is seperated according to activities and processes. Thus both the firms total expenses can be examined closely and activities that aren't profitable can be escaped/avoided. Improvement procedures such as which products need improving, improvement costs, which activities need to be improved and theirapplication and the determination of activity and costing of the improvements will have an important effect on the procedure. The planned application has been developed totally within the frame and as an adaptation to the existing MPRII software. The software was starteddue to special reasons such as product variety, the active use of the existing software, and the secrecy of some costs and special cost reports. The method developed as an adaptation to the existing one shows a closeness to the activity based costing system due to it being an adaptation to existing software and the managements request for special cost reports.The planned software however is specially designed for the firm. Its' similarity with activity based costing system is applied exactly in the grouping of service and activity. A difference was that the position of the product produced in a period and its place in total was found and with the help of the coefficient found, the consumption of service and activities was realised. In the apllication developed the most effort was spent in the area of the control of the accuracy of the base datum information. Also the placement of modules belonging to calculation modules into departments formed the biggest piece of the application. It is planned so that every type of datum result belonging to the costing module is reached. Every type of report is at optimum closeness to the real cost values. The application is still actively used in a firm which has an important place in the manufacturing industry.