Activity based costing and applicability in hospitals: A theoretical review

The concepts costing, expenses, costs and activities, and costing based on activities were attempted to be defined by scanning books and articles. The purpose of this study is to examine the subject of this study Costing Based on Activities together with other resources like books and articles. The results of academic dissertations and articles which approach Costing Based on Activities with this purpose at hospitals were examined, and in line with these results; it was discovered that the Costing Based on Activities system different from the Traditional costing system, and that because it was loaded through different allocation keys related with every activity during the items and service production, more down to earth cost data debouched in comparison with the Traditional Costing System. Key Words: Cost, Activity, Activity Based Costing