Application of Activity‑Based Costing (ABC) in Identifying Bottlenecks and Reducing Production Costs

In today’s competitive environment, manufacturing organizations need precise cost management in order to survive and grow. One of the modern approaches in management accounting is Activity‑Based Costing (ABC), which provides more reliable information for managerial decision‑making by accurately allocating overhead costs to activities and products. Unlike traditional costing methods, this system uses activities as the basis for cost allocation. Through this approach, it becomes possible to identify non‑value‑added activities, resource waste, and production bottlenecks. The purpose of this paper is to examine the role of the ABC system in identifying bottlenecks and reducing production costs in manufacturing organizations. The results of various studies indicate that the use of this system can help improve productivity, reduce unnecessary costs, and increase the efficiency of production processes.

کلیدواژه ها:

Activity-Based Costing (ABC) ، Production Bottlenecks ، Cost Management ، Production Cost Reduction ، Managerial Accounting ، Process Improvement