Activity based process costing system:its application in a synthetic weaving industry

In businesses which produce semifinished product/product with in process in processes that are related with each other as bulk, that is, applies traditional process costing system, to determine the start-of-period and end-of-period semifinished product costs of the processes that are seperated from each other and to determine the amount movements and cost distributions of the products that are completed in the processes is very important for business administration on a sales-marketing frame. By this importance and by the effect of the technological developments and the new production techniques, production media of today has become different from of the past. Depending on passing to automation in businesses, capital intensive production and increase in indirect and constant costs, the production cost structure has been changed drastically. Since there is a direct relationship between businesses production structure and product cost calculations, the changed production structure has effected cost systems and new costing approaches has been arised as an alternative to the traditional cost systems. This study has been prepared for the following purposes: to calculate properly the production costs of the businesses that are making production as processes by using meaningful cost distribution keys since these production costs are increasing their portion in total costs more and more. To help them in reviewing their present organization structure and thus to allow for them to survive in the perfect competition media by a stronger organization structure. The study consists of three main sections. The first section was allocated for the activity based costing system which is fully a modern approach in a theoritical manner and several subjects like ABC?s advancement, ABC?s functioning in application stages, its aim, benefits under the changed direction and changed information processing of the businesses which use different methods than traditional cost methods. In the second section of the study, the stage cost method and order cost method is compared according to the calculation type of costs of semifinished product/product and after that the the properties of the method and functioning of it in a theoretical manner was explained with several examples. To subjects like start-of-period/end-of-period semifinished product and loss , attention has been drawed to give information about the application steps of the method. In the last section, an application study related to the set up of ABPCS has been done depending on the cost data and the activities of SESAN A.S. and the gained results have been compared with the cost data which are prepared by the business according to the traditional process costing system and by this way several evaluations has been made.