Activity based costing and time driven activity based costing systems application in an industry enterprise

Together with technological developments, there has been changes in the products cost structures of the products, which has led to an increase in indirect costs and a decrease in direct labor costs. Correct cost information becomes even more important in managers' pricing decisions. With the developing technologies, the Activity Based Costing (ABC) system has been developed as a more accurate cost method due to the shortages in traditional costing systems. But the difficulties in implementing and maintaining this system have been criticized for having a costly and complex structure. The Time Driven Activity Based Costing (TDABC) system, which is an innovative cost system that is easier to establish and update, eliminates these deficiencies of the ABC system. In this thesis study, in the production of tractor spare parts using event study method, the indirect costs were distributed according to the ABC system, and activities according to the TDABC system, then loaded into the products and revealed their differences. Thus, it can be determined whether or not it can be applied in a sample industrial enterprise and how it affects the cost results if implemented. As a result of the study, it has been determined that unit costs of six products are lower in TDABC system than ABC system and provide more accurate cost information.