%0 Journal Article %A Derya Eren Akyol and Gonca Tuncel and G. Mirac Bayhan %D 2007 %J International Journal of Industrial and Manufacturing Engineering %B World Academy of Science, Engineering and Technology %I Open Science Index 11, 2007 %T An Analysis of Activity-Based Costing in a Manufacturing System %U https://publications.waset.org/pdf/3840 %V 11 %X Activity-Based Costing (ABC) represents an alternative paradigm to traditional cost accounting system and it often provides more accurate cost information for decision making such as product pricing, product mix, and make-orbuy decisions. ABC models the causal relationships between products and the resources used in their production and traces the cost of products according to the activities through the use of appropriate cost drivers. In this paper, the implementation of the ABC in a manufacturing system is analyzed and a comparison with the traditional cost based system in terms of the effects on the product costs are carried out to highlight the difference between two costing methodologies. By using this methodology, a valuable insight into the factors that cause the cost is provided, helping to better manage the activities of the company. %P 685 - 688