The Performing of activity based cost system in the cord of cotton industry

KEYWORDS: Activity-Based Costing One of the most discussing matter, Activity Based Costing has been discussed in cost accounting for the last twenty years in the USA- It begun to attract attention in Europe in the last decade. The system is really new for Turkey its aim is to accumulate the unit cost in more accurately. The continuous developments in economy and tecnology have come out new production systems in manufacture techniques. There has been an argument about the efficiency of tradiational costing techniques for the new production technique. Changes in the production methods and technological improvements have transformed most kinds of costs that were considered to be "direct" into kinds of costs that are "indirect". On the other hand, most managers and companies still insist on allocating increasing general production costs, support costs and decreasing direct labor costs.However, more appropriate calculation of unit costs by allocating general production costs through unit costs has gained importance. Nowadays in the developing world, this new subject can be developed by putting into practice in industrial fields in Turkey and it is supported that it can increase the profit in these industrial fields. İn these case, that traditional systems are insufficuent, the asuge of ABC offers solutions for the enterprises about their strategic decisions and business enterprise begin from more appropriate cost information in their decisions finally, in both national and international markets, they will increase both their competitive power and their profit. Activity Based Costing, a new approach in assignment overhead to manufactured products,ensures determining costs more correctly and making strategic decisions related to the future of business. In this approach deals with activities and assumes that activities consume resources, products consume activities instead of that products consume resources. So, cost pools playing a major role in allocation, are built and costs are assigned to products from cost pools by using multiple cost drivers. In this study, the literature has been re-viewed and the theoretical structure of Activity Based Costing has been searched thoroughly.