The effect of technological changes on production cost and an application

In this modern times, technology is changing and developing at a dizzying speed. Along with technological changes and developments, radical transitioning is experienced in production processes. When, we investigate this evolution in general, we can state that muscle power replaced by machines and robots in enterprises. With this technological transformation, enterprises benefit from lower manufacturing costs as operational expenses decreases. In this study, the data of a production company, which is operating in the textile sector, was examined based on the effects of technological changes on production costs. The data were collected through face to face interviews with the personnel working in the accounting department. In the study, manufacturing cost statistics of the company were compared with prior to and after the technological transformation. In this direction, the effects of technological changes on production costs have been evaluated. In the study, when the production with the new technology is compared with the production with the old technology, it has been determined that there is a decrease in the other expenses, excluding the indirect labour costs and depreciation. In this case, it has been concluded that technological transformation impacts manufacturing costs in a favourable way as it causes reduction. Keywords; Cost, Technology, Technological Change, Production Costs.