The impact of cost accounting on business productivy of SMEs

Rapid developments in technology has been eliminating the boundaries between countries and led to high competition among enterprises today. In this high competition environment, Small and Medium Sized Enterprises (SMEs) which play very important role in the contribituon of countries' local economy, follow these developments closely. They complete neccesary requirements and renew their production technologies to adapt competition. Also they expand their service infrastructure like using communication technologies effeciently. By making such a things, SMEs can increase their productivity, service speed, quantity and quality. Thus, SMEs can maintain their current position and provide competitive advantage to themselves. Companies that doesn't meet the requirements of today's competitive structure, cannot maintain their position in the market so they lost their market share and unable to manage profitability. In this study, the importance of cost accounting and its effect on productivity was investigated in terms of the basis of today's market economy. The effect of cost accounting on productivity was examined in accordance with the information obtained from the in-depth interviews conducted with the managers of 5 SMEs in Istanbul Region. The aim of this study is to show the importance of cost accounting in terms of operational efficiency. According to the informations obtained from the researches, the companies are making much more expenses today to be stay competitive. Such expenses are renewing production technologies, using unified communicating tools and expanding services. The existence and continuity of the enterprises depends on the managers making the right decision for the enterprise. Cost accounting; provides managers with the information they need to make the right decisions for the business and take measures for the future of the business. In this context, cost accounting, which provides the financial information to managers and enables managers to make the right decisions for the their company. Keywords: SME, Cost accounting, productivity.