Abstract:
Cost accounting has a vital importence for companies. Since 1980’s companies in our country have taken the way of differentiation in modes of production du to technologic improvements and in order to continue their existence in competitive environment. Conventional cost accounting system led the wrong decisions because of its incapability to generate a correct production cost. As a consequence, companies have started to apply in novative activity based costing for strategy development and forward looking resolution process in their cost accounting and to avoid in efficacies of conventional approach. Activity based costing system is a new approach developed toeliminate the inadequacy of conventional costing systems and ensures that the costs distributed on the activities applied on products. As one of the modern costing systems, Activity Based Costing System improved itself and gained a distinctive role in the process of determination buisiness policies. In this study, conventional cost accounting system and activity based cost system are identified and the differences between them have been compared. This study has been prepared in the company called coin stampwith copper and copper alloy tape which is specialized in metal Rolling. Traditional cost system in the company has been observed, activity based costing system has been applied to subject of study and the differences and disadvantages have been presented to company management and proposal of application have been offered.

Keywords: Activity basedcosting, Conventionalcostaccounting

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