VARIANCE ANALYSES IN AN ACTIVITY-BASED COSTING ENVIRONMENT AND ITS APPLICATION IN A MANUFACTURING COMPANY

Abstract

In a highly competitive environment, manufacturing companies shall adopt to the changing conditions for their survival. As a result of increasing level of competition and changing cost structure, cost systems are expected to provide most accurate and most significant information to the managers and managers shall perform planning, controlling and decision making by using this information. The aim of this study is to explain activity-based variance analyses, which have arised as an alternative to the traditional cost control methods, and examine their applicability. For this purpose, activity-based variance analyses are conducted in a manufacturing company and the outcome is evaluated