scholarly journals Optimizing the Selection of Cost Drivers in Activity-Based Costing Using Quasi-Knapsack Structure

2015 ◽  
Vol 10 (7) ◽  
Author(s):  
Saleem Zeyad Ramadan
Keyword(s):  
Activity Based Costing ◽  
Cost Drivers ◽  
Selection Of

scholarly journals Manajemen Biaya untuk Meningkatkan Ketepatan Penghitungan Biaya melalui Biaya Berbasis Aktivitas

2018 ◽  
Vol 7 (2) ◽  
pp. 125
Author(s):  
Agung Listiadi
Keyword(s):  
Cost Driver ◽  
Management Systems ◽  
Activity Based Costing ◽  
High Quality ◽  
Overhead Cost ◽  
Consumption Cost ◽  
Costing System ◽  
Major Factors ◽  
The Cost ◽  
Selection Of

Cost is an important factor in ensuring the company win in the competition on the market. Consumers will choose a manufacturer that is able to produce products and services that have high quality with low prices. Costs of Management Systems Contemporary emphasis on search than the allocation. And management based activities are at the heart of contemporary operating control system. At least two major factors that must be considered in the selection of cost driver (cost driver) are: the cost of measurement and the degree of correlation between the consumption cost driver with the actual overhead. Cost driver is divided into two categories, namely the structural cost driver and executional cost driver. Cost driver is the basis used to charge collected on cost pool to the product. So that the calculation of the cost through Time Driven activity-based costing system, the company obtain more precise information and accurate.

Activity-Based Costing System for a Small Manufacturing Company

2011 ◽  
pp. 1-19 ◽  
Author(s):  
Arkadiusz Januszewski
Keyword(s):  
Integrated Circuits ◽  
Production Costs ◽  
Cost Calculation ◽  
Activity Based Costing ◽  
False Information ◽  
Direct Production ◽  
Costing System ◽  
The Right ◽  
The Cost ◽  
Selection Of

The selection of the right cost calculation method is of critical importance when it comes to determining the real product profitability (as well as clients and other calculation objects). Traditional cost calculation methods often provide false information. The literature offers many examples of big companies that have given up traditional methods and applied a new method: activity-based costing (ABC). They discovered that many products that are manufactured generate losses and not profits. Managers, based on incorrect calculations, mistakenly believed in the profitability of each product. Turney (1991) reports on an example of an American manufacturer of over 4,000 different integrated circuits. The cost calculation with the allocation of direct production costs as machinery-hour markup demonstrated a profit margin of over 26% for each product. Implementing ABC showed that the production of more than half of the products was not profitable, and having factored in additional sales and management costs (which accounted for about 40% of the total costs), it was as much as over 75%.

scholarly journals Time-driven activity-based costing of total knee replacements in Karachi, Pakistan

BMJ Open ◽  
2019 ◽  
Vol 9 (5) ◽  
pp. e025258
Author(s):  
Rabia Mansoor Khan ◽  
Katherine Albutt ◽  
Muhammad Abdullah Qureshi ◽  
Zara Ansari ◽  
Gustaf Drevin ◽  
...  
Keyword(s):  
Process Improvement ◽  
Indirect Costs ◽  
Osteoarthritis Of The Knee ◽  
Activity Based Costing ◽  
Process Maps ◽  
Cost Drivers ◽  
Personnel Costs ◽  
Total Knee Replacements ◽  
Institutional Cost ◽  
Total Knee

IntroductionOsteoarthritis of the knee has been identified as the most common disability in Pakistan. Total knee replacement (TKR) surgery is the curative treatment for advanced osteoarthritis of the knee; however, cost remains one of the barriers to effective and timely service delivery.ObjectiveWe conducted a time-driven activity-based costing (TDABC) analysis of TKR to identify major cost drivers and areas for process improvement.Methods and analysisWe performed a prospective TDABC analysis of patients who underwent bilateral TKR at The Indus Hospital (TIH) during a 14-month period from October 2015 to December 2016. Detailed process maps were developed for each phase of the care cycle. Time durations and costs were allocated to each resource utilised and aggregated across the care cycle, including personnel, direct and indirect costs.ResultsWe identified seven care phases for a complete TKR care cycle and created their detailed process maps. Major time contributors were ward stay and discharge (20 160 min), TKR surgery (563 min) and surgical admission (333 min). Overall, 92.10% of time is spent during the ward stay and discharge phase of care. Patients remain hospitalised for an average of 14 days postoperatively. Overall institutional cost of a TKR at TIH was US$4360.51 (Pakistani rupees 456 981.17) per bilateral TKR surgery. The overall primary cost drivers for the full bundle of care were consumables used during TKR surgery itself, consumables utilised in the wards and personnel costs contributing 57.64%, 27.45% and 12.03% of total costs, respectively.ConclusionUtilising TDABC allowed us to obtain a granular analysis of time and cost that was subsequently used to inform quality process improvement initiatives. In low-resource settings, such as Pakistan, TDABC has the potential to be a useful tool to guide resource allocation and process improvement.

scholarly journals A Practical Application Of Multiple Activity Based Costing

2011 ◽  
Vol 8 (2) ◽  
pp. 56
Author(s):  
Ronald A. Milne ◽  
Frances E. Milne
Keyword(s):  
Activity Based Costing ◽  
Practical Application ◽  
Overhead Cost ◽  
Cost Drivers

Professors Cooper and Kaplan (1988a and 1988b) recommend the allocation of overhead based on activities which cause the overhead cost; a process they have named Activity Based Costing (ABC). ABC has thus far been limited to the use of a single activity to allocate any cost pool. This paper argues that most cost pools have multiple cost drivers and should therefore be allocated using multiple activities and introduces the concept of Multiple Activity Based Costing.

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.

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

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