A different approach to distribution of the common production expense: Activity based costing and practising at a rice enterprise

The only way for establishments to increase their profitability in a competition environment is to manage their costs properly. For this, they need to have the exact cost information. Especially after the 80s, modern costing systems were developed in line with this purpose; instead of being alternatives for one another, these systems have mutually complementary features. ?Activity Based Costing System?, one of the modern costing systems, provides accurate cost information for the establishments.This study aims to introduce the influence of a changing production environment on cost accounting and recent cost approaches, and it introduces activity based costing systems through these cost approaches. The study also introduces the operation of the system and the cost difference it brings about through the applications carried out. In this context, the topic of the study is first discussed theoretically and then its application is carried out in a production plant in the rice sector. In the first chapter, which is the theoretical section of the study, the influence of a changing production environment on cost accounting and recent cost approaches are discussed; in the second chapter, activity based costing systems are examined in detail. In the last chapter of the study, the application of activity based costing systems is performed experientially.Within this scope, activity based costing systems are analyzed both theoretically and experientially. In this sense, right cost management is strategically important as it assures right pricing and the rendering of right decisions.Keywords: Cost, Activity Based Costing System, Rice Sector