The effects of cost of conversion on procuct cost according to TMS-2 stock standards and a case study

The main purpose of this study is to show that cost management,which is found suitable by tax law and inventoriable cost be calculated correctly.The reason is that in case business is exposed to marginal capacity idle capacity can be added to inventorible cost. TMS-2 `s normal cost management don?t add inventorible cost with idle capacity to inventorible cost . With the purpose of proving doing the right thing, TMS-2 will show the product cost difference between normal cost management approved by by TMS-2 stock standards and Full cost method approved by the tax law of the country. The main purpose is to bring forward some proposals for shareholders and administrators by comparing these two cost methods and performing an application in industrial building.