INVESTIGATION OF PRODUCTION COSTS IN A MANUFACTURING COMPANY THROUGH THE ACTIVITY-BASED COST SYSTEM AND THE THEORY OF CONSTRAINTS INTEGRATION

Demet Ever; Elif Nursun Demircioğlu

Article Details

INVESTIGATION OF PRODUCTION COSTS IN A MANUFACTURING COMPANY THROUGH THE ACTIVITY-BASED COST SYSTEM AND THE THEORY OF CONSTRAINTS INTEGRATION

Authors:

Demet Ever | Elif Nursun Demircioğlu

Publisher:

Cukurova University

Main Topics:

Muhasebe | Denetim ve Mali Sorumluluk (Diğer)

Journal:

Çukurova Üniversitesi Sosyal Bilimler Enstitüsü Dergisi Vol.33 Issue 2, pp.549-570

Document Type:

Article

Publication Date:

10/2024

Document Language:

Turkish

Document ID (Org No.):

2001330004

pISSN:

1304-8899

Keywords:

Abstract:

 Due to the inadequacy of traditional cost systems in todays conditions, the Activity Based Costing ABC System and Theory of Constraints TOC approach, which is a contemporary cost-management accountingmanagement tool, gain importance. ABC provides accurate product costing as well as a detailed analysis of the relationships between resources, activities, and products. However, ABC does not provide information on the constraints of these resources and activities in the production process. On the other hand, TOC focuses on how much resources in the enterprise can be utilized while carrying out production activities and the importance of the capacity of these resources so that efficiency in production can be achieved. It is stated in the literature that healthier decisions on product costs can be made by using ABC and TOC together. This study aims to investigate the effects of the combined use of the ABC System and the TOC approach on production costs and business profitability in a flour production company operating in the food sector in Turkey. For this purpose, the case study method was adapted and the ABC and TOC approaches were applied together based on the companys May 2022 data. In the investigation, since the activities in the company consist of unit-level activities, it has been concluded that the use of the ABC system does not affect product costs because the ABC system gives the same result as the traditional system. Then, using the information obtained from ABC, TOCs Five Steps Continuous Improvement Model was applied, and alternative solution suggestions were presented to increase the company profitability by eliminating the existing constraints in the company.

 Due to the inadequacy of traditional cost systems in todays conditions, the Activity Based Costing ABC System and Theory of Constraints TOC approach, which is a contemporary cost-management accountingmanagement tool, gain importance. ABC provides accurate product costing as well as a detailed analysis of the relationships between resources, activities, and products. However, ABC does not provide information on the constraints of these resources and activities in the production process. On the other hand, TOC focuses on how much resources in the enterprise can be utilized while carrying out production activities and the importance of the capacity of these resources so that efficiency in production can be achieved. It is stated in the literature that healthier decisions on product costs can be made by using ABC and TOC together. This study aims to investigate the effects of the combined use of the ABC System and the TOC approach on production costs and business profitability in a flour production company operating in the food sector in Turkey. For this purpose, the case study method was adapted and the ABC and TOC approaches were applied together based on the companys May 2022 data. In the investigation, since the activities in the company consist of unit-level activities, it has been concluded that the use of the ABC system does not affect product costs because the ABC system gives the same result as the traditional system. Then, using the information obtained from ABC, TOCs Five Steps Continuous Improvement Model was applied, and alternative solution suggestions were presented to increase the company profitability by eliminating the existing constraints in the company.

 Due to the inadequacy of traditional cost systems in todays conditions, the Activity Based Costing ABC System and Theory of Constraints TOC approach, which is a contemporary cost-management accountingmanagement tool, gain importance. ABC provides accurate product costing as well as a detailed analysis of the relationships between resources, activities, and products. However, ABC does not provide information on the constraints of these resources and activities in the production process. On the other hand, TOC focuses on how much resources in the enterprise can be utilized while carrying out production activities and the importance of the capacity of these resources so that efficiency in production can be achieved. It is stated in the literature that healthier decisions on product costs can be made by using ABC and TOC together. This study aims to investigate the effects of the combined use of the ABC System and the TOC approach on production costs and business profitability in a flour production company operating in the food sector in Turkey. For this purpose, the case study method was adapted and the ABC and TOC approaches were applied together based on the companys May 2022 data. In the investigation, since the activities in the company consist of unit-level activities, it has been concluded that the use of the ABC system does not affect product costs because the ABC system gives the same result as the traditional system. Then, using the information obtained from ABC, TOCs Five Steps Continuous Improvement Model was applied, and alternative solution suggestions were presented to increase the company profitability by eliminating the existing constraints in the company.

 Geleneksel maliyet sistemlerinin günümüz koşullarında yetersiz kalmasından dolayı çağdaş bir maliyetyönetim muhasebesi aracı olan Faaliyet Dayalı Maliyetleme FDM Sistemi ve Kısıtlar Teorisi KT yaklaşımı önem kazanmaktadır. FDM, doğru bir şekilde ürün maliyeti sunmasının yanı sıra kaynaklar, faaliyetler ve ürünler arasındaki ilişkilerin detaylı bir analizini ortaya koymaktadır. Ancak FDM, üretim sürecinde bu kaynakların ve faaliyetlerin işletmeye yarattığı kısıtlara yönelik bilgi sağlamamaktadır. KT ise, üretim faaliyetleri gerçekleştirilirken işletmedeki kaynaklardan ne kadar yararlanılabileceğini ve bu kaynakların kapasitesinin önemi üzerine odaklanmaktadır ki bu sayede üretimde verimlilik sağlanabilmektedir. Literatürde ürün maliyetleri üzerine daha sağlıklı kararların FDM ile KTnin birlikte kullanımı ile alınabileceğini ifade edilmektedir. Bu kapsamda bu çalışma ile FDM Sistemi ve KT yaklaşımının birlikte kullanımının Türkiyede gıda sektörü alanında faaliyet gösteren bir un üretim işletmesinde üretim maliyetleri ve işletme kârlılığı üzerine etkilerinin araştırılması amaçlanmıştır. Bu amaçla doğrultusunda Örnek Olay Çalışması yöntemi tercih edilerek, işletmenin 2022 yılı Mayıs ayı verilerinden hareketle FDM ve KT yaklaşımları birlikte uygulanmıştır. Yapılan uygulamada; işletmedeki faaliyetler birim seviyesi faaliyetlerden oluştuğu için FDM sisteminin kullanımının ürün maliyetlerini etkilemediği sonucuna ulaşılmıştır, zira FDM sistemi ile geleneksel sistemle aynı sonucu vermiştir. Ardından, FDMden elde edilen bilgilerden yararlanılarak KTnin Beş Adım Sürekli İyileştirme Modeli uygulanmış ve işletmede var olan kısıtlar giderilerek işletme karlılığının arttırılmasına yönelik alternatif çözüm önerileri sunulmuştur.

Article Details

INVESTIGATION OF PRODUCTION COSTS IN A MANUFACTURING COMPANY THROUGH THE ACTIVITY-BASED COST SYSTEM AND THE THEORY OF CONSTRAINTS INTEGRATION

Authors:

Demet Ever | Elif Nursun Demircioğlu

Publisher:

Cukurova University

Main Topics:

Muhasebe | Denetim ve Mali Sorumluluk (Diğer)

Journal:

Çukurova Üniversitesi Sosyal Bilimler Enstitüsü Dergisi Vol.33 Issue 2, pp.549-570

Document Type:

Article

Publication Date:

10/2024

Document Language:

Turkish

Document ID (Org No.):

2001330004

pISSN:

1304-8899

Activity based costing

Theory of constraints

Production costs

Company profitabilityKısıtlar teorisi

üretim maliyetleri

işletme karlılığı

Faaliyete Dayalı Maliyet Sistemleri

Issues

Article Details

Authors: Demet Ever | Elif Nursun Demircioğlu

Publisher: Cukurova University

Main Topics: Muhasebe | Denetim ve Mali Sorumluluk (Diğer)

Journal: Çukurova Üniversitesi Sosyal Bilimler Enstitüsü Dergisi Vol.33 Issue 2, pp.549-570

Document Type: Article

Publication Date: 10/2024

Document Language: Turkish

Document ID (Org No.): 2001330004

pISSN: 1304-8899

Issues

Authors:

Demet Ever | Elif Nursun Demircioğlu

Publisher:

Cukurova University

Main Topics:

Muhasebe | Denetim ve Mali Sorumluluk (Diğer)

Journal:

Çukurova Üniversitesi Sosyal Bilimler Enstitüsü Dergisi Vol.33 Issue 2, pp.549-570

Document Type:

Article

Publication Date:

10/2024

Document Language:

Turkish

Document ID (Org No.):

2001330004

pISSN:

1304-8899