Author/Authors :
YÜKÇÜ, Süleyman Dokuz Eylül Üniversitesi - İktisadi ve İdari Bilimler Fakültesi - İşletme Bölümü, Turkey , KARAKELLEOĞLU, İlker Dokuz Eylül Üniversitesi - İktisadi ve İdari Bilimler Fakültesi - İşletme Bölümü, Turkey , ALTUN, Ceren Dokuz Eylül Üniversitesi - İktisadi ve İdari Bilimler Fakültesi - İşletme Bölümü, Turkey
Title Of Article :
IMPLEMENTATION OF ACTIVITY BASED COSTING IN PRICING DECISIONS ON THE PURPOSE OF PROFIT MAXIMIZATION
Abstract :
After constituting a basic understanding about two essential functions of modern day businesses, that are costing and pricing, this paper aims to put a spotlight to intersection points of these two fundamentals used for strategical decision taking. It is endeavored to explain how mentioned elements can be included in strategy designation phases through quantitative samples close to reality. Evaluation of incumbent costing system’s validity can be judged by effectiveness of the information it provides for assessing profit maximization. On this basis, overweighs of Activity Based Costing to Traditional Costing Approach is discussed via its effects on pricing which is one of the most significant factors of competition. In the implementation stage of the article, samples are generated so as to reveal the role of chosen costing system used for determining ideal selling price and production volume.
NaturalLanguageKeyword :
Activity Based Costing , Pricing , Business Decisions , Costing , Production Capacity , Profit Maximization
JournalTitle :
Journal Of Economics and Administrative Sciences, Ataturk University
