INVESTIGATION OF FOOTWEAR PRODUCTION COSTS WITH TIME-DRIVEN ACTIVITY BASED COSTING METHOD
AYAKKABI ÜRETİM MALİYETLERİNİN SÜRECE DAYALI FAALİYET TABANLI MALİYETLEME YÖNTEMİ İLE İNCELENMESİ

Author : Ayşe KURTLU - Şeyma ÇAKIR
Number of pages : 415-429

Summary

Global competition environment, technological developments, development of production technologies, shortening of product life periods etc. factors have changed the structure of production costs. While the share of direct labor costs in production costs decreased, the share and importance of general production costs increased. The share of general production costs in production costs was 15% in traditional production environments, but today it is approximately 60% due to the increase in depreciation and indirect labor such as engineering and design The activity-based costing method, developed to adapt to this situation and to achieve more accurate cost information, has been inadequate and has not found much application due to costly and time-consuming factors such as installation and operation. As a result of the quests, time-driven activity based costing method, which is an advanced version of traditional activity based costing, has been developed. The aim of the study is to reach more accurate cost information and to support the decision making process of management by time-driven activity based costing method. For this purpose, the application of the research was carried out in a shoe manufacturing company operating in Bursa. According to the findings, unit cost of a pair of shoes is 120 TL in traditional activity based costing method while 88,46 TL in time-driven activity based costing method. Furthermore, in time-driven activity costing method, 127.500 minutes were used, not the whole of the practical capacity (172.800 minutes). 132.727 TL of the production cost of 180.000 TL was distributed to the products, not the cost of idle capacity (45.300 minutes). Thus, has been reached more accurate and realistic cost information.

Keywords

Time-Driven Activity Based Costing, Activity Based Costing, Idle Capacity, Unit Cost, Shoe Manufacturing Cost

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