Establishment of activity based management accounting for strategic pricing in a trading company in the furniture industry

In today's fast-paced business environment, businesses need the right tools to use scarce resources more efficiently. With these tools, companies must develop and support ideal management approaches as well as allocating resources efficiently. Some believe that under the current circumstances, traditional business management systems cannot provide the expected benefits and meet the requirements. The activity-based management approach, which was put forward to eliminate the deficiencies of traditional management, is a forecasting model that determines the degree of resource required to achieve the expected performance during any activity. A work-based management style provides organizations with a basis for operational data planning and results analysis, which is not limited to financial information in conventional management methods. Accordingly, the research aims to develop an activity-based management model that emphasizes the importance of strategic resource pricing and explains in detail the application of the model to management companies and operations. The application example provides important data, especially as it details the stages of realization of the model and considers strategic price variables and fixed costs of resource production one by one. In our study, first of all, a literature review was conducted on activity-based costing, activity-based management and strategic pricing. In this context, activity-based costing, activity-based management and strategic pricing, implementation process, advantages and disadvantages are explained. Next, a conceptual model is proposed to construct another management model by activity and try to demonstrate the functionality of this model from the manufacturing company's data. The asset-based strategic pricing management accounting determination model proposed in this study is believed to provide an effective framework for guiding management towards cost control and performance measurement objectives.