scholarly journals A CALCULATION OF COST OF QUALITY WITH ACTIVITY BASED COSTING METHOD TO MAINTAIN QUALITY BETWEEN PRODUCTION PROCESSES

2019 ◽  
Vol 14 (1) ◽  
pp. 1
Author(s):  
Bambang Purwanggono ◽  
Rizalt Valentinus
Keyword(s):  
Production Process ◽  
Diesel Fuel ◽  
Measuring Method ◽  
Activity Based Costing ◽  
Quality Cost ◽  
Cost Of Quality ◽  
Production Processes ◽  
Cost Categories ◽  
The Cost ◽  
A Company

ABSTRACT Quality is an image of a company. PT Berkat Manunggal Jaya is a company that its primary activity is to assemble the generator units. This company wants to improve its quality in its production processes. The Initial stage is to determine the amount of quality cost since it hasn’t been measured yet, especially in the production processes. This is because there are several cost categories that are within the company but the company still has not been able to measure them, which include the cost of diesel fuel for repeated inspection and the amount of diesel fuel that was carried when generators are delivered to the customers. The measuring method of this quality cost is using the Cost of Quality (COQ) model which details of the cost categories are based on Activity Based Costing (ABC) method. This method is suitable because it uses direct costs’ account, for instance, the use of materials as well as indirect costs as corporate overhead costs. The detail work instructions for the inspection of the production process between departments are provided based on existing procedures in the company. This is done to reduce the unacceptable product-in-progress when the production process is in operation. After calculating and put in all the activities into the four categories of Cost of Quality, the total Cost of Quality compared with the prices of sold unit from every generator set type are 1.77% for 680 KVA type open, 1.74% for 1300 KVA first type silent, 1.74% for 1300 KVA second type silent, 2.86% for 680 KVA type silent, 1.28% for 1300 KVA first type open, 1.27% for 1300 KVA second type open, 1.13% for 1740 KVA first type open, 1.13% for 1740 KVA second type open. The recommended solution for the reduction of Cost of Quality is to modify the procedure inspection flow in the company to reduce failure cost, especially in the final inspection costs (repeated test load processes).

scholarly journals Mechanism of the quality cost administration system

2021 ◽  
pp. 23-26
Author(s):  
Serhii TKACHENKO ◽  
Olena POTYSHNIAK ◽  
Yevheniia POLIAKOVA
Keyword(s):  
Quality Assurance ◽  
Production Process ◽  
Cost Management ◽  
Quality Cost ◽  
Cost Of Quality ◽  
Quality Of Work ◽  
Quality Assurance Process ◽  
Assurance Process ◽  
The Cost

Strengthening the impact of the production and economic mechanism on increasing the economic efficiency of the production process and the quality of work is possible on the basis of choosing the most effective ways to achieve high end results of the national economic system of the country. One of these ways is the inclusion in the system of controlled parameters of the economic parameters of quality cost management, the use of which guarantees the quality coordination system to reach a given economically justified state. Adjustment of quality costs consists in maintaining the established proportions between the costs of quality assurance (quality) and the mismatch of work quality indicators, which is achieved by controlling the level of defects, maintaining certain conditions, rules and norms corresponding to the optimal mode of work on quality assurance and the optimal value costs. The quality assurance process is based on a classification represented by a range of activities aimed at ensuring the quality of tools, objects of labour, living labour and information data at all stages of the production process. The costing methodology is based on the selection of the costing object and costing units. Representation of work on quality assurance as an object of calculation, and hours of work or total amount of work as calculation units allows at the right time to present in value terms both the quality assurance process as a whole and the cost of quality for the product. The recommended mechanism of the cost management system in general is focused on a wide range of enterprises and associations, and its use allows to obtain the effect of minimizing the cost of quality, as well as improve the quality of work to ensure product quality, ice directly contribute to production efficiency and quality. Increase of economic benefit at the expense of cost control system solutions of the problem in the future is possible if its implementation on the basis of the theory of functional management development, conversion of static model into a dynamic coordination costs.

scholarly journals Quality Cost and Economic Analysis. A Synthesis in the Manufacturing Systems

2021 ◽  
Vol 343 ◽  
pp. 05008
Author(s):  
Elif Ocakci ◽  
Jörg Niemann ◽  
Caius Luminosu ◽  
Alin Artene
Keyword(s):  
Product Life Cycle ◽  
Manufacturing Systems ◽  
Activity Based Costing ◽  
Production Networks ◽  
Quality Improvements ◽  
Quality Cost ◽  
Cost Of Quality ◽  
Continuous Quality ◽  
Cost Identification ◽  
The Cost

The paper performs a literature review on existing models and methodologies to analyse and identify the cost of quality in manufacturing systems. The review shows that existing accounting models are insufficient to identify quality cost in detail in production processes. Existing models also do not cover the entire production activities and therefore need to be extended over the entire product life cycle. The authors therefore develop a new approach by refining and extending the method of activity-based costing to make it applicable for quality cost identification. The proposed methodology can serve as a building block for a later integration into superior supply chain management systems which allow to trigger continuous quality improvements of entire production networks.

D. Perhitungan HPP Telur Asin Dengan Pendekatan Variabel Costing Pada UD Mulya Jaya

2019 ◽  
Vol 4 (1) ◽  
pp. 30
Author(s):  
Neno Pratiwi ◽  
Andre Setiawan ◽  
Ilmi Cayono ◽  
Johan Trinanto
Keyword(s):  
Decision Making ◽  
Production Process ◽  
Raw Materials ◽  
Selling Price ◽  
Assistance Program ◽  
Total Cost ◽  
Cost Of Production ◽  
The Cost ◽  
A Company ◽  
Important Objective

ABSTRAK Pada umumnya harga pokok produksi dalam akuntansi diartikan dengan jumlah biaya dari seluruh pemakaian yang telah dilakukan selama proses produksi atau kegiatan yang mana mengubah bahan baku menjadi produk jadi (produk siap pakai/siap saji). Tujuan penting dalam tugas ini yaitu memperhitungkan harga pokok produksi dari UD Mulya Jaya dengan menggunakan pendekatan variabel costing untuk mengetahui besarnya harga pokok pada setiap produk yang diproduksi. Pentingnya penentuan harga pokok produksi dapat dilakukan sebelum para usaha menentukan harga jual. Pendampingan ini bertujuan untuk membantu mencari dan menentukan harga pokok produksi yang dapat digunakan untuk menetapkan harga jual. Pendampingan ini dilakukan untuk membantu wirausaha dalam program kerja, yaitu bimbingan akuntansi dengan fokus perhitungan harga pokok produksi. Dalam menentukan harga pokok produksi pada UD Mulya Jaya dapat menggunakan pendekatan variable costing yang biasanya metode ini digunakan untuk semacam pengambilan keputusan dalam perusahaan. Melalui program pendampingan kewirausahaan didapatkan hasil perhitungan harga pokok produksi yang menggunakan pendekatan variabel costing. Hasil tersebut dapat menjadi suatu keputusan bagi UD Mulya Jaya untuk dapat menetapkan harga pokok produksi pada setiap produk telur asin. Kata Kunci : Kewirausahaan, HPP, Harga.   ABSTRACT In general, the cost of production in accounting is defined as the total cost of all uses that have been made during the production process or activities which convert raw materials into finished products (ready-to-use / ready-to-serve products). An important objective in this task is to calculate the cost of goods manufactured from UD Mulya Jaya by using a variable costing approach to find out the cost of goods on each product produced. The importance of determining the cost of production can be done before businesses determine the selling price. This assistance aims to help find and determine the cost of production that can be used to set the selling price. This assistance is carried out to help entrepreneurs in work programs, namely accounting guidance with a focus on calculating the cost of production. In determining the cost of production at UD Mulya Jaya, it can use the variable costing approach, which is usually used for a kind of decision making in a company. Through the entrepreneurship assistance program, the results of the calculation of the cost of production are obtained using the variable costing approach. These results can be a decision for UD Mulya Jaya to be able to set the cost of production for each salted egg product. Keywords: Entrepreneurship, COGS, Price

scholarly journals Cost of Quality Analysis on Tailors’ Industry in Aceh

2018 ◽  
Vol 1 (1) ◽  
pp. 98-111
Author(s):  
Dinaroe Dinaroe ◽  
Syarifah Umaira ◽  
Fazli Syam BZ
Keyword(s):  
Data Availability ◽  
Quality Analysis ◽  
Annual Reports ◽  
Future Research ◽  
Research Approach ◽  
Managerial Accounting ◽  
Quality Cost ◽  
Cost Of Quality ◽  
The Cost ◽  
Banda Aceh

Objective – This research aims to explore and find out the application of Cost of Quality in Managerial Accounting perspective on the Tailor’s businesses in Banda Aceh during the period of 2015 – 2017. In addition, the research purposes are to analyze the firms plan and control of the Cost of Quality and how the firms arrange the cost in order to improve the quality with minimum budget cost.Design/methodology – The study uses qualitative descriptive research approach and being conducted using data from the firms annual reports and additional in-depth interview with the owners. The technique of purposive sampling is used in this study with the data availability criteria. The population of the research are the Micro, Small and Medium Enterprises (MSMEs) in Banda Aceh, and the sample criteria among others are tailor industry factories in Banda Aceh that have already prepared financial report during the observed period. CV Kuta Alam Tailor and CV Aceh Moda Tailor have been selected as the samples and as the study case location. The researcher analyzed the data by analyzing and examining the costs incurred by the firms, at how much and what kind of it, related to the cost of quality and cost of goods sold before and after the cost of quality is being added. Results – The result shows that CV. Kuta Alam Tailor and CV. Aceh Moda Tailor in term of cost of quality is still above 2.5% of the sales, thus indicates that the cost extravagancy and there are big differences in the cost of the goods sold if the cost of quality is included into the cost of goods sold. In addition, it is also found that both firms do not make a quality cost report specifically.Research limitations/implications – The research is based on the qualitative approach and does not using empirical research tools, so then it can not be generalized for overall tailor industry in Aceh nor Indonesia, outside of the observed firms and location. Therefore, it is necessary for the future research to explore more this phenomenon by using quantitative approach in order to analyze the influence of quality cost and firm performance or budget efficiencies.Novelty/Originality – The research focuses on analyzing and examining the cost of Quality in manufactur industry, particularly in the Job-Process Industry, such as Tailor industry is still very novice and need to be nurtured. Thus, this study contributes to this area by examining the implementation and aplication of the cost of quality whether the cost information can produce managerial information through financial and managerial reporting that will improve the product quality toward cost effeciency.Keywords Cost of Quality, Prevention Cost, Appraisal Cost.

Implementation of Time-Driven Activity-Based Costing System in the Manufacturing Industry

2020 ◽  
pp. 272-283 ◽  
Author(s):  
Ahmet Özcan
Keyword(s):  
Manufacturing Industry ◽  
Business Environment ◽  
Activity Based Costing ◽  
Strategic Decisions ◽  
Quality Cost ◽  
Goods And Services ◽  
Costing System ◽  
The Cost ◽  
Capacity Cost

In the current business environment, the costing system used within the firms has prominent impact on strategic decisions. High-quality cost data significantly increases the quality of firms' strategic decisions. The activity-based costing system has failed to satisfy the needs of firms operating in the competitive economic environment. The time-driven activity-based costing system is the developed version of activity-based costing system. Time-driven activity-based costing system is one of the most sophisticated costing systems that enable firms to accurately calculate the cost of goods and services. Time-equations are used in time-driven activity-based costing system to estimate the time consumed by each activity. This chapter aims to discuss main dynamics of time-driven activity-based costing system and provides an illustration of this costing system in the manufacturing industry. The case study demonstrates that time-driven activity-based costing system is useful in calculating idle capacity cost.

scholarly journals Cost of quality model in the practice of apple juice processing business unit in Batu City: a comparison

2021 ◽  
Vol 924 (1) ◽  
pp. 012067
Author(s):  
N F Rayesa ◽  
D Y Ali
Keyword(s):  
Apple Juice ◽  
Cost Model ◽  
Production Capacity ◽  
Business Unit ◽  
Activity Based Costing ◽  
Quality Model ◽  
Cost Of Quality ◽  
Business Units ◽  
Quality Costs ◽  
The Cost

Abstract The paper compares the cost of quality models in a different business unit of selected apple juice producers. Data and information were carried out through observation and interviews with key informants and related parties. Further data were analysed using the Activity Based Costing (ABC) approach to get a quality cost model for each business unit. The primary cost analysis shows a similar proportionality between the cost of prevention, appraisal, and cost of failure among three business units. Results illustrated that the higher the production capacity, the higher quality costs that occur or are budgeted for. From the calculation of quality costs, it is known that most of the quality costs come from appraisal costs. The cased business units indicated the high appraisal cost, which does have an impact on the low number of defective or failed products.

PENGARUH TOTAL QUALITY MANAGEMENT (TQM) TERHADAP BIAYA KUALITAS DAN KUALITAS PRODUK SERTA IMPLIKASINYA TERHADAP KINERJA PERUSAHAAN DENGAN BUDAYA KUALITAS SEBAGAI VARIABEL MODERASI

2018 ◽  
Vol 1 (01) ◽  
Author(s):  
Ade Dyah
Keyword(s):  
Quality Management ◽  
Total Quality Management ◽  
Product Quality ◽  
Primary Data ◽  
Total Quality ◽  
Quality Cost ◽  
Cost Of Quality ◽  
Quality Culture ◽  
The Cost

The purpose of this study was to examine and analyze empirically the influence of Total Quality Management (TQM) to the cost of quality and product quality, the influence of Total Quality Management (TQM) to the cost of quality and product quality by quality culture as the moderating variable, the influence of the cost of quality and product quality the performance of the company.Data collection methods used in this research is in the form of secondary and primary data. The questionnaire distributed by proportional random sampling to 34 people respondent managers who working in the rattan industry in Cirebon. The method used in this research is the analysis of MRA (Moderated Regression Analysis) with SPSS tools.The results of this research are the Total Quality Management (TQM) affect the cost of quality and product quality, Total Quality Management (TQM) with a quality culture not significant effect on the cost of quality and product quality, cost and quality of the product quality no significant effect on the performance of the company.

Activity-Based Costing and Cost Interdependencies among Products: The Denim Finishing Company

2005 ◽  
Vol 20 (1) ◽  
pp. 51-62 ◽  
Author(s):  
Dennis Caplan ◽  
Nahum D. Melumad ◽  
Amir Ziv
Keyword(s):  
Production Process ◽  
Production Line ◽  
New Product ◽  
Cost Accounting ◽  
Activity Based Costing ◽  
Cost Information ◽  
Accounting Systems ◽  
Full Cost ◽  
Level Information ◽  
The Cost

A fictional example illustrates how interdependencies among products in the production process, and the costs associated with those interdependencies, challenge the ability of cost accounting systems to generate decision-useful product cost information. The cost interdependency in the current example is a production-line change-over cost that is incurred to retool a machine whenever the production process changes from one product to another. Both marginal costing and full cost activity-based costing (ABC) are employed in an attempt to provide decision-relevant product-level information in connection with the decision to add a new product.

Total Quality Cost Reduction in Head Stack Assembling

2011 ◽  
Vol 110-116 ◽  
pp. 4028-4035
Author(s):  
Wari Dansakuncharoenkit ◽  
Damrong Thawesaengskulthai
Keyword(s):  
Cost Reduction ◽  
Disk Drive ◽  
Fish Bone ◽  
Quality Level ◽  
Total Quality ◽  
Quality Cost ◽  
Cost Of Quality ◽  
Detection Ability ◽  
Quality Costs ◽  
The Cost

The PAF model, which is one of techniques about the cost of quality (CoQ), has been introduced to the head stack assembly process in the hard disk drive industry. Purpose to measure the total CoQ in the current process and use it as a tool to identify problems related to quality costs in order to find improvement plans. The total CoQ has been calculated in the percentage of the cost of quality per the cost of finished goods. Cost elements that impacted to the total CoQ have been prioritized and analyzed by using the Fish Bone diagram and the FMEA tool to find the potential causes of problems. The improvement plans have been implemented in order to reduce the chance of occurrences and improve detection ability. The result on two head stack models showed that the total CoQ could be reduced from 1.45% to 1.36% or 6.21% of improvement on the model A and reduced from 1.11% to 1.08% or 2.70% of improvement on the model B. The optimum points between the total CoQ and the quality level are 1.32% and 99.32% on the model A and 1.07% and 98.95% on the model B.

scholarly journals ACTIVITY BASED COSTING SYSTEM : MODEL PENELUSURAN BIAYA OVERHEAD YANG AKURAT PADA UMKM SILK HOUSE SABBENA SOPPENG

2020 ◽  
Vol 4 (2) ◽  
pp. 310-322
Author(s):  
Syamsu Alam
Keyword(s):  
Production Process ◽  
Product Category ◽  
Cost Driver ◽  
System Model ◽  
Activity Based Costing ◽  
Cost Drivers ◽  
The Difference ◽  
Costing System ◽  
The Cost ◽  
Descriptive Method

This study aims to trace the absorption of overhead costs in the production process at Sabbena Soppeng's silk house, to identify appropriate cost drivers in allocating overhead costs to products that are accurate and do not occur distortion. This research uses descriptive method. Collecting data through interviews, observation, documentation. The analysis was carried out by applying a two-stage activity-based costing model. First, trace overhad costs to the “cost pool”. Second, trace the overhead costs to the product using multiple cost drivers. The results showed: a) the product category " Kain Sutera" shows a smaller difference of Rp. 3,253.62; b) product category "Sarung sutra ST-0 Standar" shows a bigger difference of Rp 10,997.4; c) product category "Sarung sutera ST-1 Standar" shows a bigger difference of Rp 22,420.49; d) product category "Sarung sutera ST- Sedang" shows a bigger difference of Rp. 28,352.51; e) product category “Sarung Sutera ST-ASL” shows a bigger difference of Rp. 278,342.75. The difference is due to the fact that the traditional overhead system does not use several cost drivers. Meanwhile, the ABC system uses a multi cost driver in charging BOP. So that with the ABC System it is considered that the BOP allocation is more accurate. Keywords : Activity Based Costing, Cost of Production.

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