PRODUCTION COSTS AND COST MANAGEMENT PRACTICES OF TURKISH MANUFACTURING COMPANIES (ICI 500): A DESCRIPTIVE STUDY

Year 2009, Volume: 1 Issue: 2, 1 - 16, 01.12.2009

Murat Kocsoy Yusuf Ag

Abstract

In this paper, we aimed to determine the production costs of Turkish manufacturing companies and
their managing these costs in order to contribute literature in which no comprehensive study is
done on this subject. In accordance with the aim, we conducted a descriptive survey to 287 private
manufacturing companies among 500 large-scale companies listed in Istanbul Chamber of Industry
and 90 surveys completed by the companies are evaluated.
As a result, the estimation and determination of production costs in the pre-production phase is
regarded as a beneficial process. A considerable number of companies continue this process at the
beginning and end of production shows their acceptance to traditional cost approach rather than
strategic cost management approach of product life cycle. Besides, we found that the relative
companies have a low level of association with suppliers which have a significant impact on
decreasing and managing costs.

Keywords

Cost Management, Management Accounting, Strategic Cost management, Cost Decreasing, Cost Accounting, Production Cost

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