Effects of administrative and cost accounting of SME's on the process of process making are emphasized, and application is performed in the SME's making production in the TRB 1 region

Today SME's are seen as the essential building blocks of economy. Besides their numerous advantages, they contain many problems within themselves. When we consider them in terms of business administration, we encounter with these problems extremely. Process of decision making is a mechanism that is managed in SME's by the proprietor, partners or directors. Decision making and implementation are realized easily in this mechanism because of the smallness of establishments in terms of scale. However, source of the problems is mostly efficiency and rationality of the decisions taken and their compatibility with the business strategies. Enterprises try to give their decisions by means of scientific, systematic business functions and by evaluating activity results. Within this context, accounting information system produces the information necessary for decision making process besides revealing the activity results. Form this viewpoint, accounting information system shall show its effects in the decision making process by including the cost and administrative accounting. When there is failure in the accounting information system, or there is no separate cost and administrative accounting department or sufficient staff is not employed, impact of these shall be seen in the process of decision making. In our study, effects of administrative and cost accounting of SME's on the process of process making are emphasized, and application is performed in the SME's making production in the TRB 1 region. It is established that cost and administrative accounting is not efficiently utilized in SME's carrying on their activities in TRB 1 region in the process of decision making; and that scale problems and undeveloped accounting culture can be hold forth as the reasons. Our study consists of three sections. In the first section, subjects like decision making process, importance of decision making and features of a good decision are explained in detail. Issues like cost and administrative accounting in SME's, budget concept as a control and inspection instrument, features of SME's, cost administration approaches in the process of decision making, properties and aims of budgets and their dimensions are clarified by making use of current literature in the second section. Survey conducted in 210 SME's that operate in TRB 1 region and their results are given in the third section. Keywords: Decision making, Administrative accounting, Cost accounting