Activity-based costing: Application of the olive sector

The purpose of the thesis named as ?The Activity Based Costing: An Application in the Olive Sector? is the implementation of activity based costing in olive sector and the statement of the differences as regards to the traditional costing. The accepted basic hypothesis in the thesis is that the activity-based costing provides more accurate cost information than the traditional costing process.As a method the case study has been used in the thesis. The reason behind is that it enables to the users the implementation, observation, and evaluation of the problems, as soon as they appear.Primary and secondary data constitute the material of the thesis. Primary data has been obtained from the face-to-face interviews with both the administrative and operational employees of the business. The secondary data is obtained from domestic and foreign resources in the accounting literature related to the subject.The work consists of three main parts except for the introduction and the conclusion sections. In the first part, information about traditional costing and current costing processes has been given. The lines of traditional costing processes are stated. In the second part, activity-based costing process is explained. For this purpose, comprehensive information about action based costing is given initially and after that, the formation stages of activity based costing are explained. In the third part, the olive sector where the application is carried out has been briefly explained and evaluated. Then the activity based costing process is applied in a business dealing with production of olives. Later the results obtained are compared to the results accounted with the traditional costing process of the firm. According to the results, it is stated that the activity-based costing provides more accurate cost information than traditional costing process.Keywords:Traditional Costing, Activity-Based Costing, Activity, Cost Allocation, Olive Sector