AI Summary & Key Takeaways
AI InsightThe most important reason for that is, in the accounting system of Turkey, even if operating expenses belong to that production period, it is considered as a non-production expense and added to operating accounts instead of stock accounts
📌 3 Key Takeaways
Abstract
As result of the growing competition and changing production structure, traditional cost systems are not adequate any more. In this study, it is aimed to review the feasibility of activity based costing (ABC) system - one of the modern costing systems - for a coal enterprise. In this context, case study was conducted via the selected enterprise. Results obtained from the research are as follows: First of all, due to not including the cost proportion of sales /marketing and general administrative expenses to inventoriable costs calculated in the enterprise of application, inventoriable costs were lower in traditional costing system compared to ABC system. The most important reason for that is, in the accounting system of Turkey, even if operating expenses belong to that production period, it is considered as a non-production expense and added to operating accounts instead of stock accounts