Resource Consumption Accounting and A Case of Application In Manufacturing Company

Due to the developments in production systems and increasing competition conditions, managers' need to reach accurate cost information is growing daily. The traditional costing system has become dysfunctional in analyzing complex and crowded operations. For this reason, the traditional costing system cannot produce reliable information that can keep up with the competitive environment of the age. The Resource Consumption Accounting approach combines activity-based information with resource capacity information and determines the cost behavior depending on the input-output relationship at the resource level. The purpose of creating Resource Consumption Accounting is to develop a cost model that will shed light on the manager's decisions throughout the production process. A key difference of the RCA from other methods is recognizing the idle resources in resource pools. In this study, RCA was applied in a manufacturing company using a case study method. In this context, the existing cost system was examined, and the production process was observed of the company. The data obtained with the RCA system were analyzed, and the findings were interpreted. The findings obtained from the study show that the RCA system provides quantitative information to managers about resources consumption and costs of idle capacity.