Application of methods of calculation cost of products and by-products in TÜPRAŞ

IV ABSTRACT Surviving of a production company depends on not only handling business related external activities systematically, but also managing internal quantity and value flows according to requirements. Quantity and value flows have to be recorded systematically. Data obtaining from entries has to be evaluated continuously in order to reach companies goals with the minimum cost. Therefore, all companies emphasize the cost counting. Cost accounting obtains the control of costs in two sub-function. The first one is to reduce cost or not to increase cost. The second one is to assess performance and productivity of management. Company can increase production and reduce the cost in analysing the data obtaining cost accounting. With doing that, National Economy develops. Although process costing system has been used to calculate cost of product in compound manufacturing, every company can calculate the cost of compound product according to it's characteristics of production. Some industrial firms produce both main product and one or more than one by-products. Main part of production or goal product is compound product, other manufactured product are by-product. Although there are some difficulties to find out if product or by-product, products which have comparatively low selling value and technology requirements are by-products. Determination of actual costs requires methods of cost calculation.Both deciding product price and national or international competition require determination of real cost of produced products. In this study, it has been examined not only methods of cost calculation of products and by-products, but also advantages and disadvantages of methods. Therefore, it has been applied methods of calculation of compound products and by-products in Tüpraş which has %86 of our country's total crude oil, complete substructure and strong logistics position to import crude oil, LPG and other petroleum products. It has been aimed to lessen production cost in Tüpraş in order to be the leader of national energy companies and competitive all around the world. Tüpraş has quite strategic importance in Turkey.Therefore, definition and reduction of production cost in Tüpraş is very important argument. In this study, product and by-product has been defined it has been tried to determine products and by-products produced in Tüpraş. Then, it has been tried to bring to light applicable methods of calculation cost of products and by-products.