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

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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