Integrating Normal Costing and Activity-Based Costing: A Structured Framework and Applied Evidence from Manufacturing Operations
Makaleler > Tam Makale · 2026
Yazarlar: Süleyman Yükçü, Selda Korga
Journal of Accounting, Finance and Auditing Studies, Uluslararası, 2026, cilt 12, ss 33-45
DOI: 10.56578/jafas120103
Özet
An integrated framework for combining normal costing with activity-based costing (ABC) is developed and demonstrated to address persistent limitations in conventional cost accounting practices.Although normal costing remains widely adopted due to its operational simplicity and alignment with financial reporting, its reliance on broad overhead allocation bases has been shown to impair cost accuracy in complex production environments.Conversely, ABC offers superior causal attribution of indirect costs but is often perceived as difficult to integrate into routine costing systems.To reconcile these approaches, a structured integration methodology is proposed and illustrated through an applied case based on the machining department of an automobile parts manufacturer.Using a controlled hypothetical dataset to ensure analytical transparency, unit product costs are first determined under the traditional costing system using both full costing and normal costing approaches.Subsequently, the same cost structures are recalculated within an ABC framework, again under both full costing and normal costing assumptions, allowing systematic comparison across costing logics.The results demonstrate that integrating ABC with normal costing enhances cost precision without sacrificing the operational advantages of normal costing, particularly in departments characterized by high overhead intensity and activity heterogeneity.It is further shown that the integrated approach mitigates cost distortion arising from volume-based allocation while preserving consistency with standard cost-setting practices.From a methodological perspective, the study advances existing literature by explicitly operationalizing the coexistence of ABC and normal costing rather than treating them as mutually exclusive systems.Practical implications are highlighted for manufacturing enterprises seeking incremental adoption of ABC principles within established accounting infrastructures.In addition, the necessity of enterprise resource planning (ERP) systems is emphasized, as reliable integration depends on high-resolution activity data and automated cost tracing capabilities.The proposed framework and application procedure are expected to provide accounting practitioners and researchers with a replicable pathway for implementing integrated costing systems that balance analytical accuracy with managerial feasibility.