scholarly journals Study on Implementation of Activity-Based Costing (ABC) System on Determination of Indirect Costs in Ship Production

Kapal ◽  
2020 ◽  
Vol 18 (1) ◽  
pp. 1-7
Author(s):  
Sufian Imam Wahidi ◽  
Vialdo Muhammad Virmansyah ◽  
Triwilaswandio Wuruk Pribadi
Keyword(s):  
Indirect Costs ◽  
Cost Accounting ◽  
Global Market ◽  
Activity Based Costing ◽  
Cost Information ◽  
Shipbuilding Industry ◽  
Budget Planning ◽  
System Method ◽  
Costing System

Currently, business development, especially in the maritime sector, has quite rapid progress in Indonesia. Recently, the shipbuilding industry's development is an effort to improve competitiveness with the global market. With the increasing development of the shipbuilding industry in Indonesia, cost accounting as a cost information system is challenged to develop the shipbuilding industry, requiring high product quality. This matter requires the company to decide on proper budget planning not to experience losses. Activity-Based Costing (ABC) System is a system to determine costs using activities to classify costs to produce indirect costs that are more systematic and relevant. Activity-based costing systems identify resources in each department's activities to provide information about a product's cost. It collects indirect costs and allocates them to various products in proportion to the product volume. Therefore, activity-based costing can estimate the product costs and individual activity costs used in the production well. The first step is classifying activities, associating various costs with various activities, determining homogeneous cost groups, and determining group rates. The second step of this stage is the determination of overhead prices selected from each cost group. This research compares indirect costs to the construction of 2x1800 HP tugboat ships according to traditional cost accounting methods with the Activity-Based Costing System method. The first method's result is 3,432,920,043 IDR and the second method is 2,231,760,472 IDR.

Penentuan Harga Pokok Produksi Berdasrkan Sistem ABC pada Perusahaan Roti Dyas't Kota Baubau

2021 ◽  
Author(s):  
Said Saleh Salihi ◽  
Said Saleh Salihi
Keyword(s):  
Selling Price ◽  
Activity Based Costing ◽  
Conventional System ◽  
Cost Of Production ◽  
Costing System ◽  
Brown Bread ◽  
The Right ◽  
The Cost ◽  
Descriptive Method

This research aims to determine and analyze the right determination of the cost of goods manufactured based on the Activity Based Costing (ABC) System at the Dyas't Baubau Bread Company. This type of research is to use the descriptive method using the Activity Based Csoting system. Dyas't. The results of this study The cost of production with the Activity Based Costing system on Dyas't Baubau bread is Rp. 420.60 with a selling price of Rp. 650.00, obtaining a profit of Rp. 229.40 or 54.54% of the cost of goods manufactured. Meanwhile, if using the conventional system, the cost of goods manufactured by Dyas't Baubau Bread Company is Rp. 549.65 with a selling price of Rp. 650.00, obtaining a profit of Rp. 100.35 or 18.265% of the cost of goods manufactured, the cost of goods manufactured using the Activity Based Costing system. for sesame brown bread of Rp. 250.61 with a selling price of Rp. 330.00, obtaining a profit of Rp. 79.39 or 31.68% of the cost of goods manufactured. Meanwhile, if using the conventional system, the cost of production of sesame brown bread is IDR 244.25 with a selling price of IDR 330.00, you will gain a profit of IDR 85.75 or 33.11% of the cost of goods manufactured

scholarly journals Implementation of an Activity Based Costing System (ABC)

2018 ◽  
Vol 4 (2) ◽  
pp. 51-62
Author(s):  
L.O. Rodríguez Manay ◽  
I. Guaita ◽  
I. Marqués
Keyword(s):  
Special Reference ◽  
Agricultural Sector ◽  
Cost Model ◽  
Cost Accounting ◽  
Service Industries ◽  
Production Costs ◽  
Activity Based Costing ◽  
Model Based ◽  
Primary Sector ◽  
Costing System

Research has been presented on the application of activity-based cost (ABC) in the manufacturing and service industries in the agricultural sector, which examines recent advances in cost accounting methods with special reference to the application of cost based in methodological activities in the primary sector. Accordingly, this document proposes using a transparent, flexible, easy to apply and understand cost model; based on activities to calculate and manage production costs in companies.

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.

A Comparative Analysis of Activity-Based Costing and Traditional Costing Systems

2012 ◽  
pp. 1429-1440
Author(s):  
Khaled Samaha ◽  
Sara Abdallah
Keyword(s):  
Cost Accounting ◽  
Activity Based Costing ◽  
Strategic Decisions ◽  
Cost Information ◽  
Accounting Systems ◽  
Organizational Environments ◽  
Corporate Commitment ◽  
Traditional Costing ◽  
Abc Method ◽  
Manufacturing Organization

Today, organizational environments are increasingly characterized by an expanding use of advanced technologies. A company’s management accounting system should capture the underlying technology, be consistent with corporate commitment to total quality and increased automation, and promote its efforts to compete on the basis of cost, quality, and lead time. However, the recent literature reveals that traditional cost accounting systems systematically introduce serious product cost distortions, which lead to inappropriate strategic decisions. Activity-Based Costing (ABC) represents an alternative paradigm that is giving more accurate and traceable cost information. The objective of this case is to illustrate the application of ABC method in a single manufacturing organization operating in the metal industry and to compare the results of ABC with volume based costing (traditional costing) method. The results of the application highlight the weak points of volume based costing which assigns factory overhead costs using direct labor-hours or machine-hours as a cost driver. As a result, volume-based costing under-costs low-volume product (i.e. products requiring fewer direct labor hours in total), while it over-costs high-volume products (i.e. products requiring more direct labor-hours in total), and thus, a product is subsidized at the expense of others. In cost accounting this is called cross-subsidization. However, activity-based costing traces overhead consumption by each product and thus provides a more accurate per-unit overhead cost.

scholarly journals Activity-based costing on the example of prune-drying company

2014 ◽  
Vol 59 (3) ◽  
pp. 363-373
Author(s):  
Nikola Popovic ◽  
Marina Vasilic
Keyword(s):  
Indirect Costs ◽  
Cost Accounting ◽  
Production Costs ◽  
Quality Data ◽  
Accounting System ◽  
Activity Based Costing ◽  
Accounting Systems ◽  
Business Decision ◽  
Modern Approach ◽  
Cost Accounting System

This paper examines the possibility of application of the activity-based costing in a company engaged in drying fruit. Activity Based Costing (ABC) was developed due to the shortcomings of traditional cost accounting systems, which was shown to have serious limitations, on one hand, and due to the need for more accurate cost price, on the other. This is of great importance for business decision making, which requires quality data and information, because the intense technical and technological progress has significantly altered the environment companies operate in. Along with this fact, major changes in cost structure occurred, which reflected through the increase of the indirect cost portion, and decrease of direct labor and material costs. Traditional cost accounting methods allocate indirect production costs using keys which are no longer appropriate for the new circumstances, and therefore typically allocate unreasonably high amount of indirect costs to those products which are produced in larger series. ABC cost accounting system firstly allocates indirect costs to pre-defined activities, and afterwards carries them to cost and profit drivers. The application of ABC costing in Serbia is at the very beginning. Having in mind that the privatization and the restructuring phase in the economy is followed by the establishment of a new management with fresh ideas, this can be a good timing for companies to introduce modern approach and modern methods of cost accounting. ABC method is very convenient for application in service companies, food processing industry, confectionery companies, driers, sugar refineries, breweries, dairies, mills etc.

scholarly journals PENERAPAN ACTIVITY BASED COSTING SYSTEM SEBAGAI DASAR PENETAPAN TARIF JASA RAWAT INAP PADA RUMAH SAKIT ROEMANI MUHAMMADIYAH SEMARANG

MAKSIMUM ◽  
2016 ◽  
Vol 3 (2) ◽  
pp. 1
Author(s):  
Mohammad Afifudin ◽  
R. Ery Wibowo Agung S
Keyword(s):  
Comparative Analysis ◽  
Community Service ◽  
Cost Driver ◽  
Activity Based Costing ◽  
Hospitalization Rates ◽  
Costing System ◽  
Class Iib ◽  
The Cost ◽  
Descriptive Method

The purpose of this study was to gain knowledge about the determination of rates of hospitalization services using activity based costing, can be used as reference in setting tariffs inpatient services at Rumah Sakit Roemani Muhammadiyah Semarang and as means comparison with the rates of hospitalization for this set, as well as being one of that input provide information about activity based costing, especially in its application to a hospital that is the main orientation of community service. The method of analysis used descriptive method is to use the comparative analysis of the current hospital rates, set the cost method is based on activity based costing, and then compare the hospitalization rates based on activity based costing with its realization. The results showed that the calculation of hospitalization rates by using activity based costing, when compared with the rates used by the hospital activity based costing provides greater results for Class, IIB, PICU, dan BBRT and yields smallaer for class UTAMA, IA, IB,II, IIA, III dan R.BAYI. This is because the overhead loading on each product. On activity based costing, overhead costs for each product are charged to costs a lot of drivers. So that the activity based costing, has been able to allocate the cost of the activity room kesetiap appropriately based on the consumsion of aech activity.Keywords: activity based costing and cost driver.

scholarly journals ANALISIS DETERMINASI BIAYA PRODUKSI DENGAN PENDEKATAN ACTIVITY BASED COSTING SYSTEM (ABC SYSTEM) (STUDI KASUS DI UD. PRIMA BHAKTI KARAWANG)

BUANA ILMU ◽  
2018 ◽  
Vol 3 (1) ◽  
Author(s):  
Ade Suhara ◽  
Bona Herman Sianturi
Keyword(s):  
Food Industry ◽  
Production Costs ◽  
Activity Based Costing ◽  
Cost Drivers ◽  
System Method ◽  
Production Activity ◽  
High Production ◽  
Cost Of Production ◽  
Costing System ◽  
The Cost

ABSTRACT UD. Prima Bhakti is a food industry that is engaged in processing cassava into cassava chips which are located at Jalan Kemuning, Karangligar Village, West Telukjambe District, Karawang District, West Java. This factory experienced problems in the system of controlling high production costs which impacted on rising selling prices. The occurrence of production costs swelling due to the lack of good cost management. The costing used by the company is currently based on past cost data which is then made an estimated cost that will occur. From the above problems carried out a study of the design of the cost of production through the approach of Activity Based Costing (ABC). Activity Based Costing method is a method of calculating costs that imposes first costs on activities, then on products based on the use of activity by each product. Activity Based Costing System method identifies the activities carried out, tracing the costs to these activities and then using various cost drivers to trace costs, activities to cost objects. Key words: Cassava chips, cost of production, activity based costing ABSTRAK UD. Prima Bhakti merupakan industri makanan yang bergerak di bidang pengolahan singkong menjadi keripik singkong yang beralamat di Jalan Kemuning Desa Karangligar Kecamatan Telukjambe Barat Kabupaten Karawang Jawa Barat. Pabrik ini mengalami permasalahan pada sistem pengendalian biaya produksi yang tinggi yang berimbas pada naiknya harga jual. Terjadinya pembengkakan biaya produksi dikarenakan belum adanya manajemen biaya yang baik. Penetapan biaya yang dipakai perusahaan saat ini didasarkan pada data biaya masa lalu yang kemudian dibuat taksiran biaya yang akan terjadi. Dari permasalahan di atas dilakukan suatu penelitian mengenai rancangan harga pokok produksi melalui pendekatan Activity Based Costing (ABC). Metode Activity Based Costing adalah metode kalkulasi biaya yang membebankan biaya pertama-tama pada aktivitas, lalu pada produk berdasarkan penggunaan aktivitas oleh setiap produk. Metode Activity Based Costing System mengidentifikasikan aktivitas yang dilaksanakan, menelusuri biaya keaktivatas tersebut dan kemudian menggunakan berbagai pemicu biaya (cost drivers) untuk menelusuri biaya, aktivitas ke objek biaya. Kata kunci : Keripik singkong, harga pokok produksi, activity based costing

scholarly journals PENERAPAN ACTIVITY BASED COSTING SYSTEM DALAM PENENTUAN HARGA POKOK TARIF PENYEWAAN JASA KENDARAAN PADA PT. SERASI AUTORAYA

2018 ◽  
Vol 14 (1) ◽  
Author(s):  
Fricilia Kindangen ◽  
Jenny Morasa ◽  
Lidia M. Mawikere
Keyword(s):  
Descriptive Analysis ◽  
Indirect Costs ◽  
Simple Calculation ◽  
Activity Based Costing ◽  
Product Service ◽  
Costing System ◽  
Vehicle Activity ◽  
Calculation System ◽  
The Cost ◽  
Keywords Cost

Activity Based Costing (ABC) is a simple calculation system to determine the cost of a product / service on the basis that it is the activity that causes the cost to arise, not from the product and the product that consumes the activity, the indirect costs can be determined through the activity it passes and the costs for each activity are then charged the product on the basis of consumption of each product in the activity. The purpose of this study was to determine the application of the cost of vehicle rental using Activity Based Costing method at PT Serasi Autoraya. This study uses descriptive analysis method, which is done by interviews and documentation. The results showed a comparison between the methods used by PT Serasi Autoraya and the application of Activity Based Costing System. For the calculation of the cost of the rental vehicle using Activity Based Costing System, namely for the type of Avanza car Rp. 3,710,271 and for Innova cars Rp. 6,567,413. There is a lower price difference between the calculation of PT Serasi Auotaraya and the results of calculations using Activity Based Costing System, namely for the Avanza Rp. 1,864,750 and for the Innova type there is a difference in the price of Rp. 1,313,728.Keywords: cost of rental service vehicle, Activity Based Costing System

Penentuan Harga Pokok Produksi Berdasrkan Sistem ABC Pada Perusahaan Roti Dyas Kota Baubau

2021 ◽  
Author(s):  
Said Saleh Salihi ◽  
Said Saleh Salihi
Keyword(s):  
Selling Price ◽  
Activity Based Costing ◽  
Conventional System ◽  
Cost Of Production ◽  
Costing System ◽  
Brown Bread ◽  
The Right ◽  
The Cost ◽  
Descriptive Method

This research aims to determine and analyze the right determination of the cost of goods manufactured based on the Activity Based Costing (ABC) System at the Dyas't Baubau Bread Company. This type of research is to use the descriptive method using the Activity Based Csoting system. Dyas't. The results of this study The cost of production with the Activity Based Costing system on Dyas't Baubau bread is Rp. 420.60 with a selling price of Rp. 650.00, obtaining a profit of Rp. 229.40 or 54.54% of the cost of goods manufactured. Meanwhile, if using the conventional system, the cost of goods manufactured by Dyas't Baubau Bread Company is Rp. 549.65 with a selling price of Rp. 650.00, obtaining a profit of Rp. 100.35 or 18.265% of the cost of goods manufactured, the cost of goods manufactured using the Activity Based Costing system. for sesame brown bread of Rp. 250.61 with a selling price of Rp. 330.00, obtaining a profit of Rp. 79.39 or 31.68% of the cost of goods manufactured. Meanwhile, if using the conventional system, the cost of production of sesame brown bread is IDR 244.25 with a selling price of IDR 330.00, you will gain a profit of IDR 85.75 or 33.11% of the cost of goods manufactured

A Comparative Analysis of Activity-Based Costing and Traditional Costing Systems

2011 ◽  
pp. 41-53
Author(s):  
Khaled Samaha ◽  
Sara Abdallah
Keyword(s):  
Cost Accounting ◽  
Activity Based Costing ◽  
Strategic Decisions ◽  
Cost Information ◽  
Accounting Systems ◽  
Organizational Environments ◽  
Corporate Commitment ◽  
Traditional Costing ◽  
Abc Method ◽  
Manufacturing Organization

Today, organizational environments are increasingly characterized by an expanding use of advanced technologies. A company’s management accounting system should capture the underlying technology, be consistent with corporate commitment to total quality and increased automation, and promote its efforts to compete on the basis of cost, quality, and lead time. However, the recent literature reveals that traditional cost accounting systems systematically introduce serious product cost distortions, which lead to inappropriate strategic decisions. Activity-Based Costing (ABC) represents an alternative paradigm that is giving more accurate and traceable cost information. The objective of this case is to illustrate the application of ABC method in a single manufacturing organization operating in the metal industry and to compare the results of ABC with volume based costing (traditional costing) method. The results of the application highlight the weak points of volume based costing which assigns factory overhead costs using direct labor-hours or machine-hours as a cost driver. As a result, volume-based costing under-costs low-volume product (i.e. products requiring fewer direct labor hours in total), while it over-costs high-volume products (i.e. products requiring more direct labor-hours in total), and thus, a product is subsidized at the expense of others. In cost accounting this is called cross-subsidization. However, activity-based costing traces overhead consumption by each product and thus provides a more accurate per-unit overhead cost.

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