scholarly journals INTERNAL AUDIT ACTIVITY BASED MANAGEMENT UNTUK MENILAI EFESIENSI DAN EFEKTIFITAS PADA DEPARTEMEN PRODUKSI CV. HERBA BAGOES MALANG KOTA

2016 ◽  
Vol 1 (01) ◽  
Author(s):  
Tri Ratnawati ◽  
Amelia Kusniawati
Keyword(s):  
Market Competition ◽  
Value Added ◽  
Internal Audit ◽  
Integrated Approach ◽  
Added Value ◽  
Accounting System ◽  
Activity Based Costing ◽  
Management Activity ◽  
The Cost ◽  
Support Cost

In the market competition, many UKM (small and medium sized business) as the manufacturers of Herbal medicine, better known as IKOT (Traditional Medicine Small Industries) have not been able to expand its business due to the lack of capital to meet consumer demand and yet to adopt reporting systems accounting effectively and efficiently. It was thus making the IKOT have not been able to minimize the cost of production. It is therefore needed an necessary training in preparing the accounting reports that can be used to support cost savings. So, we need an application of proper accounting system in the form of the system of Activity Based Management. Activity Based Management is an integrated approach that uses cost of activities efficienciently and effectively, and thus can provide added value for customers and increasing profits as well. The purpose of this study was to Assess the Role of Internal Audit in the Implementation of Activity Based Management and evaluate how efective and effecient the implementation of Activity Based Management . This research is conducting by using qualitative techniques, mathematical techniques and analytical techniques that consists some stages of identifying the activity, analyzing segregation, analyzing the cost drivers, analyzing the activity charges, as well as the analyzing of the performance measurement activities. Then, the results were classified by the conditions, criterias, causes, consequences to provide some recommendations on the raised issues. The survey results revealed that CV. Herba Bagoes has not been implementing Activity Based Management but has been using a system of Activity Based Costing. By implementing Activity Based Management, It can minimize the cost of up to 1.30%. Activities that are non value-added to the CV. Herba Bagoes are sortaging, washing (purificating) and storaging. Storaging can be removed, while the purification activity can be replaced with immersion and storage activities can be minimalized. To overcome the problems occurred, CV. Herba Bagoes need to implement Activity Based Management.Keywords: Internal Audit, Efficiency and Effectiveness, Activity Based Management

Implementasi Analisis Proses Bisnis Sebagai Upaya Pengurangan Biaya

2019 ◽  
Vol 10 (1) ◽  
pp. 1-27
Author(s):  
Aniek Wijayanti
Keyword(s):  
Business Process ◽  
Cost Reduction ◽  
Process Analysis ◽  
Value Added ◽  
Added Value ◽  
Natural Material ◽  
Management Activity ◽  
Procurement Process ◽  
Material Procurement ◽  
The Cost

Business Process Analysis can be used to eliminate or reduce a waste cost caused by non value added activities that exist in a process. This research aims at evaluating activities carried out in the natural material procurement process in the PT XYZ, calculating the effectiveness of the process cycle, finding a way to improve the process management, and calculating the cost reduction that can achieved by activity management. A case study was the approach of this research. The researcher obtained research data throughout deep interviews with the staff who directly involved in the process, observation, and documentation of natural material procurement. The result of this study show that the effectiveness of the process cycle of natural material procurement in the factory reached as much as 87,1% for the sand material and 72% for the crushed stone. This indicates that the process still carry activities with no added value and still contain ineffective costs. Through the Business Process Mechanism, these non value added activities can be managed so that the process cycle becomes more efficient and cost effectiveness is achieved. The result of the effective cycle calculation after the management activities implementation is 100%. This means that the cost of natural material procurement process has become effective. The result of calculation of the estimated cost reduction as a result of management activity is as much as Rp249.026.635,90 per year.

scholarly journals Primary Research of the Advantages and the Cost Control of the ABC & EVA Integrated System

2010 ◽  
Vol 3 (3) ◽  
pp. 141
Author(s):  
Haibo Hu
Keyword(s):  
Cost Control ◽  
Control Strategies ◽  
Economic Value ◽  
Value Added ◽  
Capital Cost ◽  
Integrated System ◽  
Activity Based Costing ◽  
Cost System ◽  
Integrated Cost ◽  
The Cost

The integrated product of Activity-Based Costing (ABC) and Economic Value Added (EVA) is the ABC & EVA system, i.e. the integrated cost system. Traditional ABC method gives priority to the interior activity chain of enterprise to implement the cost analysis, but ignores the capital cost, so the cost accounting is not complete. The ABC & EVA system brings the capital cost into the cost management, which could not only open out the real economic value created by the cost objects, but extend the pure cost computation of ABC to the performance evaluation. Based on the principle of the ABC & EVA system, the enterprise cost control strategies under the integrated cost system are proposed.

scholarly journals Application of the Activity-Based Costing Method for Unit-Cost Calculation in a Hospital

2015 ◽  
Vol 8 (1) ◽  
pp. 165 ◽  
Author(s):  
Mahdi Javid ◽  
Mohammad Hadian ◽  
Hossein Ghaderi ◽  
Shahram Ghaffari ◽  
Masoud Salehi
Keyword(s):  
Unit Cost ◽  
Cost Price ◽  
Medical Services ◽  
Cost Calculation ◽  
Accounting System ◽  
Activity Based Costing ◽  
Hospital Managers ◽  
Cost System ◽  
Abc Method ◽  
The Cost

<p><strong>BACKGROUND:</strong> Choosing an appropriate accounting system for hospital has always been a challenge for hospital managers. Traditional cost system (TCS) causes cost distortions in hospital. Activity-based costing (ABC) method is a new and more effective cost system.</p> <p><strong>OBJECTIVE:</strong> This study aimed to compare ABC with TCS method in calculating the unit cost of medical services and to assess its applicability in Kashani Hospital, Shahrekord City, Iran.‎</p> <p><strong>METHODS:</strong> This cross-sectional study was performed on accounting data of Kashani Hospital in 2013. Data on accounting reports of 2012 and other relevant sources at the end of 2012 were included. To apply ABC method, the hospital was divided into several cost centers and five cost categories were defined: wage, equipment, space, material, and overhead costs. Then activity centers were defined. ABC method was performed into two phases. First, the total costs of cost centers were assigned to activities by using related cost factors. Then the costs of activities were divided to cost objects by using cost drivers. After determining the cost of objects, the cost price of medical services was calculated and compared with those obtained from TCS.‎</p> <p><strong>RESULTS:</strong> The Kashani Hospital had 81 physicians, 306 nurses, and 328 beds with the mean occupancy rate of 67.4% during 2012. Unit cost of medical services, cost price of occupancy bed per day, and cost per outpatient service were calculated. The total unit costs by ABC and TCS were respectively 187.95 and 137.70 USD, showing 50.34 USD more unit cost by ABC method. ABC method represented more accurate information on the MAJOR COST COMPONENTS.</p> <p><strong>CONCLUSION:</strong> By utilizing ABC, hospital managers have a valuable accounting system that provides a true insight into the organizational costs of their department.<strong></strong></p>

scholarly journals Bioconversion of cassava bagasse and sugarcane bagasse using cheap home-made enzymatic cocktails

2021 ◽  
Author(s):  
Gabriela Verónica Díaz ◽  
Silvana Soledad Sawostjanik Afanasiuk ◽  
Romina Olga Coniglio ◽  
Juan Ernesto Velázquez ◽  
Pedro Darío Zapata ◽  
...  
Keyword(s):  
Sugarcane Bagasse ◽  
Value Added ◽  
Added Value ◽  
Cassava Bagasse ◽  
Commercial Enzymes ◽  
Before And After ◽  
Agricultural Industries ◽  
The Cost ◽  
Agroindustrial Wastes ◽  
Value Added Products

Abstract The agricultural industries generate lignocellulosic wastes that can be modified by fungi to generate high value-added products. The aim of this work was to analyze the efficiency of the bioconversion of sugarcane bagasse and cassava bagasse using two cheap home-made enzymatic cocktails from Aspergillus niger LBM 134 (produced also from agroindustrial wastes) and compare the hydrolysis yield with that obtained from the bioconversion using commercial enzymes. Sugarcane bagasse and cassava bagasse were pretreated with a soft alkaline solution before the hydrolysis carried out with home-made enzymatic cocktails of A. niger LBM 134 and with commercial enzymes to compare their performances. Mono and polysaccharides were analyzed before and after the bioconversion of both bagasses as well as their microscopic structure. The maximal yield was the 80% of total glucans saccharified from cassava bagasse. The bioconversion of both bagasses were better when we used the home-made enzymatic cocktails than commercial enzymes. We obtained high added-value products from agroindustrial wastes, home-made enzymatic cocktails and hydrolysates rich in fermentable sugars. The importance of this work lays in the higher performance of the cheap home-made enzymatic cocktails over the hydrolytic performance of commercial enzymes due to the cost of producing the home-made enzymatic cocktails were more than 500 times lower than commercial enzymes.

scholarly journals Analisis Nilai Tambah Melinjo pada Sentra Industri Emping di Desa Bandar Kecamatan Sukomoro Kabupaten Magetan

2019 ◽  
Vol 2 (1) ◽  
pp. 58
Author(s):  
Eka Adityaningrum ◽  
Sri Marwanti ◽  
Wiwit Rahayu
Keyword(s):  
Raw Materials ◽  
Value Added ◽  
Simple Random Sampling ◽  
Added Value ◽  
Average Revenue ◽  
The Cost ◽  
Industrial Center ◽  
Total Average Cost ◽  
Total Average

Agricultural commodities are generally produced as raw materials and are easily damaged, so they need to be directly consumed or processed first. The processing can increase the added value of agricultural products. The purpose of this study was to determine the cost, revenue, profit, efficiency, and value added of melinjo chips industry in Industrial Center at  Bandar Village Sukomoro District Magetan Regency. The basic method of research used is descriptive analytical method. The determination of the sample area is purpossive which is Bandar Village Sukomoro District Magetan Regency because those village is the center of the melinjo chips industry in Magetan Regency. The respondents are found and gathered by using the proportional method and the respondents are found gathered simple random sampling method. The result of this research shows that total average cost spent by those industrialists in Bandar village is Rp5.816.109,00 per month. The average revenue for each of them is Rp7.826.667,00  per month and the profit is Rp2.010.492,00 per month. The running of melinjo chips industries is efficient. It can be known by efficiency value (R/C ratio) 1,42. The business of melinjo chips in Bandar Village, Sukomoro District, Magetan Regency provides added value of Rp. 8,645.00 / kg

scholarly journals Value-added analysis and development strategy of lemongrass bath salt effervescent in Sampang Regency

2021 ◽  
Vol 924 (1) ◽  
pp. 012065
Author(s):  
I Maflahah ◽  
D F Asfan
Keyword(s):  
Development Strategy ◽  
Cost Efficiency ◽  
Sampling Method ◽  
Value Added ◽  
Added Value ◽  
Ratio Analysis ◽  
Strategic Design ◽  
The Development Strategy ◽  
Strategic Factors ◽  
The Cost

Abstract This study aims to determine the added value and cost-efficiency of the effervescent lemongrass bath salt and formulate a strategic design for developing the effervescent lemongrass bath salt. The research was conducted in Sampang District, East Java, Indonesia, using the purposive sampling method. The value-added of the effervescent was calculated, the cost-efficiency was considered using the R / C ratio analysis, while the development strategy used the SWOT method. The calculated added value obtained shows a positive result. The value of the R / C ratio was 1.836. Based on the results of the analysis of the internal strategy factors, the IFAS value was 3.425, and the results of the study of the external strategic factors obtained an EFAS value of 2.658. This value places the effervescent lemongrass bath salt in the growth-oriented strategy.

scholarly journals Reduction of Crude Oil Production Cost in Nigerian Indigenous Company using Activity Based Costing

2019 ◽  
Vol 4 (1) ◽  
pp. 49-53 ◽  
Author(s):  
Segun Adebisi Osetoba ◽  
Nkoi Barinyima ◽  
Rex Amadi
Keyword(s):  
Crude Oil ◽  
Cost Reduction ◽  
Production Cost ◽  
Value Added ◽  
Oil Production ◽  
Activity Based Costing ◽  
Service Company ◽  
Crude Oil Production ◽  
The Cost ◽  
The Impact

The aim of this study is to investigate the impact of activity based costing in reducing crude oil production cost in Nigerian indigenous oil and gas company. This research work identified strategies to effectively reduce the cost of crude oil production by adopting a cost reduction tool for crude oil production and to establish a good crude oil flow to the surface for production. Activity based costing was the cost reduction tool used for this work. The tool helps to differentiate between value added costing and non-value added costing. Non-value added costs must be reduced or eliminated during production so as to maximise profit. Data was collected from an indigenous oil service company. The collated data were tabulated and graphs were plotted with the aid of Microsoft excel. The analysis revealed a total sum of ₦ 416,978,977 was wrongly spent for a duration of three years on crude oil production due to non-value added costing. The activities are: poor transportation of crude oil, that is, use of mobile tanker for haulage instead of laying 4 inches coated pipes for a distance of 5km and contracting the treatment of produced water to a contractor instead of setting up a water treatment plant. Also, using a diesel engine generator for electric power supply while gas was available as a fuel gas for natural gas consuming generator was a non-value added activity. Lastly, inadequate oil well flowing practice by flowing the well through an adjustable choke for a long period of time instead of using a fixed choke. This is a huge loss for indigenous oil producing fields operated by an indigenous oil service company in Nigeria. The loss was due to inability of the producers/field location owners to set up few equipment to meet up with complete operation standard.

scholarly journals Value Creation dengan Penerapan Prinsip-Prinsip Lean Manufacturing dalam Accounting

Owner ◽  
2019 ◽  
Vol 3 (1) ◽  
pp. 56
Author(s):  
Rina Nopianti ◽  
Andreas Tri Panudju ◽  
Umi Marfuah
Keyword(s):  
Value Chain ◽  
Lean Manufacturing ◽  
Single Case ◽  
Value Added ◽  
Annual Reports ◽  
Inductive Method ◽  
Accounting System ◽  
Activity Based Costing ◽  
Case Control Studies ◽  
Value Chain Management

In many cases, some conventional accounting practices are no longer compatible with the complex manufacturing environment. The proposed this research is to inspire a systems thinking theory and a value chain management, building a business model that prioritizes customers. The objective of this paper is to find out how accounting techniques can optimize of resource utilization wihich would lead in creating value. The second objective is to minimize the lack of conventional accounting using the accounting method that appears. The method in this shis paper is a qualitative research by considering the inductive method designed as a single case study. Empirical data is used based on classic single case control studies that embedded designs including survey data, academic papers theoretical reviews, data collection from interviews, annual reports and documents collected from case companies. The research found that the management accounting system could be integrated in the framework of Just in Time (JIT) + Total Cost (TC) + Time Driven- Activity Based Costing (TD-ABC) + Balance Scorecard (BSC) to develop lean accounting. The utilization of resource is optimized after non-value added activities are eliminated.

scholarly journals The cost management approaches in trade industry

2019 ◽  
Vol 3 (3) ◽  
pp. 35-43
Author(s):  
Iryna Kvach
Keyword(s):  
Positive Impact ◽  
Cost Management ◽  
Unit Cost ◽  
Economic Value ◽  
Value Added ◽  
Added Value ◽  
Activity Based Costing ◽  
The People ◽  
Management Approaches ◽  
The Impact

Introduction. The current state of financial and economic government institutions negatively affects  Ukrainian budget execution, and the general trend of deterioration in the standard of living of the people, in general leads to low level of functioning of the enterprise and  their competitiveness, especially in such industry as trade. Aims and tasks. In the conditions of an unstable political and economic situation in commodity market and services to overcome disproportions between operating profit  of some commodity groups of trade enterprise and its added value which indicates depreciation of the capital  invested by owners not only doesn't provide compensation of investments, but also leads to losses because of inflationary processes therefore there is a need for the mutual integration of approaches of management of expenses for assessment. Results. The practical value of application of a method of Activity-based costing (ABC) and Economic Value Added (EVA) in management of expenses not only in creation of a system of accounting of expenses, but also and predictions through new approaches for the analysis for identification of unproductive fields of activity in value creation of a product is proved, including positively influences the growth of business activity for trade enterprises. In the field of innovative approaches the balanced system of indexes (BSI) and EVA methods harmoniously are integrated in processes of costs planning, management of them at the level of departments and in general are distributed among operation processes to responsible persons, which has a positive impact on maximizing capital cost of the enterprise. Conclusions. Application of methods of cost management as uniform system provides chance to distribute expenses on commodity groups and to define  goods which create added value gives the chance to settle the impact of minimum change of influence of a factor  on commodity turnover level due to decrease of unit  cost in life cycle of a product through the analysis of a point of profitability for increase in investment attractiveness.

scholarly journals Cost and Return Analysis of Small-scale Cacao (Theobroma cacao) Production in Camarines Sur, Philippines

2021 ◽  
pp. 1-9
Author(s):  
Ma. Teresa B. Lirag
Keyword(s):  
Value Chain ◽  
Return On Investment ◽  
Healthy Lifestyle ◽  
Critical Role ◽  
Value Added ◽  
Sampling Technique ◽  
Added Value ◽  
Small Scale ◽  
The Government ◽  
The Cost

The presence of cacao industry plays a critical role in the economic development of a country. A study was conducted to determine the cost, return and added value along the value chain stages of cacao in Camarines Sur, Philippines. Sixty-eight farmers served as respondents using purposive sampling technique and interviews/key informant surveys were conducted. Results of the study showed that cacao production has high return on investment of 77.89% and 160% for the farmer and processor, respectively but a low return on investment of 13% for traders. The value added from farmer to processor is Php 590.00/kilogram, and Php 125.00/kilogram from processor to trader. Various opportunities and prospects for cacao production had been identified such as increased technical and production support from the government, presence of R & D programs, increasing trend towards wellness & healthy lifestyle, and increasing businesses offering cocoa-based products. Recommendations include improvement in access and availability of processing facilities, improvement of market information for farmers, provision of trainings to enhance capability of farmers, strengthening of farmers’ groups to increase their access to technical and financial assistance from government and provision of infrastructure support and storage facilities.

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