An empirical study on the application of activity-based cost system in construction enterprises

Businesses should render their activities more efficient in order to comply with the global competition and to be successful in this environment. In this regard, the accurate calculation of cost data, which is an important element in sustaining the activities of the businesses operating in our country, has gained importance. In this respect, business managers need a cost system that will guide them in their future decisions. Activity Based Costing System, which is based on business activities in the calculation of production costs of the business and is an alternative to the traditional costing method, is the subject of our study. This study, titled "Activity Based Costing And Its Implementation In A Construction Enterprise", was carried out in order to demonstrate the implementation of the Activity Based Costing System in the construction sector and to reveal the differences between this system and the traditional costing method. The construction and contracting company operating in Konya province was selected as the model. In the first part of the study, information on basic cost concepts, cost calculation methods and modern costing methods was provided. In the second part, detailed information about the Activity Based Costing System was given and the Activity Based Costing System and the traditional costing method were compared. In the third part, the implementation of the Activity Based Costing System in the construction enterprise was included and it was examined by comparing it with the calculations made according to traditional costing method. Keywords: Traditional Costing Method, Activity Based Costing System, Construction and Contracting Enterprises