scholarly journals A Guide to Implementation of Time- Driven Activity -Based Costing in Saudi Electronic University

2020 ◽  
Vol 16 (1) ◽  
pp. 68
Author(s):  
Salah Oraby
Keyword(s):  
Unit Cost ◽  
Academic Program ◽  
Academic Programs ◽  
Cost Driver ◽  
Accounting System ◽  
Activity Based Costing ◽  
Average Unit ◽  
Costing System ◽  
Traditional Costing ◽  
Unused Capacity

This research proposes a guide to implementation of time- driven activity -based costing (TDABC) in Saudi Electronic University (SEU) as an alternative to the traditional costing systems. It is worth mentioning that the cost accounting system should support mission and vision of the university by detecting any idle capacity and providing relevant information for rational decision-making as well as improving the quality of services provided to students and finally managing SEU’s resources efficiently and effectively. According to Saudi’s vision 2030, public universities in Saudi Arabia should act on both of revenue side and cost side. In the current costing system of SEU, there are no cost pools at colleges’ level, at academic departments’ level, at courses’ level, as well as at students’ level. Rather cost pools found at university’ level only. Therefore, the current costing system provides neither information on unit cost per student at any academic program nor information on the unused capacity at any resource centers. Despite the fact that TDABC theoretically overcomes the criticism to both traditional costing system that uses direct labor or machine hours as a cost driver and the traditional activity- based costing (ABC that uses many transactions cost drivers to allocate overhead costs to cost objects. The implementation of TDABC is still challenging particularly in universities by using the time as the primary cost driver for allocating resource costs to final cost objects in academic programs especially the human labor is considered the main resource in universities. The proposed guide to implementation TDABC provided SEU’s management information, including but not limited to, the average actual unit cost per student in each academic program either per semester, or per year, comparing actual fees students paid in each academic program to the actual average unit cost in each academic program to determine whether SEU covers all costs. In addition, comparing the average unit cost per student among all academic programs and investigating reasons of variations. The guide helps management determine the unused capacity in each resource center as well as preparing budgets of all resource centers accurately based on the actual used capacity.

scholarly journals Time-Driven Activity-Based Costing in the Assembly Industry

2020 ◽  
Vol 14 (4) ◽  
pp. 3-23
Author(s):  
Olga Vedernikova ◽  
Lorena Siguenza-Guzman ◽  
Johanna Pesantez ◽  
Rodrigo Arcentales-Carrion
Keyword(s):  
Printed Circuit Boards ◽  
Critical Role ◽  
Unit Cost ◽  
Labor Cost ◽  
Circuit Boards ◽  
Manufacturing Companies ◽  
Activity Based Costing ◽  
Accounting Systems ◽  
Costing System ◽  
Traditional Costing

Costs and their determination play a critical role in all manufacturing companies. The traditional costing system has received criticism resulting from the arbitrary allocation of indirect manufacturing costs. As an important initiative to address its weaknesses, new costing methods such as the Time-Driven Activity-Based Costing (TDABC) have emerged. Unfortunately, up to our knowledge, no investigations have been applied in analyzing assembly companies thoroughly nor considering all the processes necessary to obtain the final products. This article explores the TDABC application in the assembly industry through comparison with traditional volume-based costing by focusing on manual and semi-automatized production. Since the research is descriptive, a multiple-case study design was implemented in the assembly of televisions, motorcycles, and printed circuit boards. The developed methodology allowed determining the existence of factory overhead and direct labor cost variances between two different cost accounting systems, which also affected the unit cost of the products. Findings also highlight the benefits of TDABC application in the assembly industry, along with the shortcomings and future potential of research in this area.

scholarly journals ANALISIS ACTIVITY – BASED COSTING SYSTEM DALAM MENENTUKAN HARGA JUAL PRODUK

2017 ◽  
Vol 1 (1) ◽  
pp. 54-72
Author(s):  
Aminatul Farihah ◽  
Retno Murni Sari
Keyword(s):  
System Analysis ◽  
Raw Materials ◽  
Cost Driver ◽  
Selling Price ◽  
Activity Based Costing ◽  
Traditional Use ◽  
Traditional System ◽  
Costing System ◽  
Traditional Costing ◽  
The Cost

Abstrak. Analisis Activity – Based Costing System dalam Menentukan Harga Jual Produk. Tujuan penelitian ini  Untuk mengetahui perhitungan beban pokok produksi dengan sistem Activity Based Costing (ABC) dalam menentukan harga jual produk dan menunjukkan perbedaaanya dengan sistem tradisional. Proses analisis data yaitu mengidentifikasi aktivitas, menentukan biaya yang terkait dengan masing-masing aktivitas, mengelompokkan aktivitas, menggabungkan biaya aktivitas, menghitung Tarif per kelompok aktivitas. Tahap kedua membebankan aktivitas ke produk. Setelah itu menghitung harga jual dengan menggunakan konsep biaya total.Dari perhitungan beban pokok produk dan harga jual terdapat perbedaan jumlah yang diperoleh antara sistem ABC dan sistem Tradisional. Perbedaan itu disebabkan karena dalam tradisional hanya menggunakan cost driver jam mesin, sedangkan ABC menggunakan cost driver unit produksi, pemakaian bahan baku, jam kerja langsung, luas bangunan dan jam mesin. Dengan menggunakan ABC dapat memperbaiki perhitungan beban pokok produk dalam menentukan harga jual. Kata kunci: Activity – Based Costing System, Tradisional Costing, Harga Jual Abstract. Activity - Based Costing System Analysis in Determining Product Selling Price. The purpose of this study To determine the calculation of the cost of production with the system Activity Based Costing (ABC) in determining the selling price of the product and show perbedaaanya with traditional systems. The process of data analysis is to identify activities, determine the costs associated with each activity, classify activities, combine activity costs, calculate the Rate per activity group. The second stage imposes activity on the product. After that calculate the selling price by using the concept of total cost. From the calculation of the cost of goods sold and the selling price there is a difference in the amount obtained between the ABC system and Traditional system. The difference is because in traditional use only cost driver clock machine, while ABC using cost driver of production unit, use of raw materials, direct working hours, building area and machine hours. By using ABC can improve the calculation of product cost in determining the selling price. Keyword: Activity – Based Costing System, Traditional Costing, Selling Price

scholarly journals PENERAPAN SISTEM ACTIVITY BASED COSTING SEBAGAI DASAR PENETAPAN TARIF LEMBAGA PENDIDIKAN PADA THE BRIDGE MANADO

2018 ◽  
Vol 13 (02) ◽  
Author(s):  
Andika Saputra Popang ◽  
Winston Pontoh ◽  
Sintje Rondonuwu
Keyword(s):  
Educational Institution ◽  
Cost Driver ◽  
Accounting System ◽  
Activity Based Costing ◽  
Cost System ◽  
The Difference ◽  
Costing System ◽  
The Cost ◽  
A Company

Activity Based Costing system (ABC) is an accounting system that calculates cost based on activities in a company and charge the cost to the product based on cost driver. Therefore, ABC system removes cost distortion that occurs on conventional accounting cost system, and is able to produce a more accurate cost value. This research aims to determine the difference between ABC and conventional cost system in determining the cost of goods sold in an educational institution at PT. Anugerah Bina Bersama Abadi. The results shows that cost of goods sold using the ABC system when compared to the conventional accounting cost on the English and TOEFL Class are lower, with a difference of Rp.21.746,6 and Rp.159.001,15 respectively, while higher on the Community Class with a difference of Rp.153.969,74.Rp.153.969,74.Keywords: Activity based costing, cost of goods sold

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.

scholarly journals PENERAPAN METODE ACTIVITY BASED COSTING DALAM PENENTUAN HARGA POKOK PRODUKSI PADA PT. SARIMELATI KENCANA (PIZZA HUT MANADO TOWN SQUARE)

2013 ◽  
Vol 8 (3) ◽  
Author(s):  
Stephany Ch. Pelleng ◽  
Herman Karamoy ◽  
Victorina Tirajoh
Keyword(s):  
Quantitative Data ◽  
Cost Driver ◽  
Production Costs ◽  
Activity Based Costing ◽  
Traditional System ◽  
Pricing Process ◽  
Costing System ◽  
The Right ◽  
The Cost ◽  
Pizza Hut

Nowadays, every company has to have a right and efficient way to know their own pricing process. The better the company count it, the better it would be to compete in the market because the right method or system will decrease the cost and increase the profit. Activity Based Costing System is a method of calculating the cost of goods manufactured based on activities in a company using more cost driver, so it can calculate more accurate. This method is expected to be applied to the PT. Sarimelati Kencana who still using the traditional system for calculating the cost of goods manufactured. This research has a purpose to know the cost of goods manufactured in the company using activity based costing system. There are qualitative and quantitative data on this project. Qualitative data for company profile and quantitative data for production costs. This is descriptive research and the result shows that the pricing process using ABC method give overcost condition for pizza hut personal and undercost condition for pizza hut regular and large.

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 An Analysis of the Time-Driven Activity-Based Costing System in Foundation Higher Education Organizations

2021 ◽  
Vol 11 (2Pt2) ◽  
pp. 537-549
Author(s):  
Burçin Tutcu
Keyword(s):  
Higher Education ◽  
Cost Management ◽  
Vocational School ◽  
Activity Based Costing ◽  
Scarce Resources ◽  
Service Production ◽  
Costing System ◽  
Program Costs ◽  
Traditional Costing ◽  
Higher Education Organizations

Changes in globalization and technology have made the competition in the education sector more in-tense. This change in competition has reduced the profit margins of educational organizations. In order to maintain their market share and maintain their assets under these conditions, organizations have had to put greater stress on cost management. Today, cost management has moved beyond simply being a sub-system of accounting and has become one of the main tasks of business management. Higher education organizations need to use scarce resources effectively and efficiently to achieve their goals, develop long-term strategies, and maintain their existence. The extent to which resources are used by whom and for what time should be determined correctly. The outputs obtained during this process should be checked and interpreted correctly. This study was designed as a case study and conducted in a vocational school of a foundation university in Istanbul. The aim of this study is to examine the service production process in foundation vocational school with different costing methods and to compare the results. For this purpose, the costs of the vocational school for the 2016-2017 accounting period were calculated by using both the traditional costing method and the time-driven activity-based cost-ing method. These two methods were then compared to find out their degree of accuracy in calculating the program costs.

scholarly journals Analisis Perhitungan Biaya Satuan (Unit Cost) Spp Bulanan Program Reguler Dan Premium Di Sekolah Bola Basket (Sbb) Dbl Academy Surabaya Pada Tahun 2017

2016 ◽  
Vol 8 (1) ◽  
pp. 28
Author(s):  
Ahmad Saddam Husni
Keyword(s):  
Unit Cost ◽  
Cost Driver ◽  
Activity Based Costing

AbstrakPenelitian ini dilakukan bertujuan untuk menambah pengetahuan mengenai penentuan tarif pelayanan dengan menggunakan metode Activity Based Costing dan dapat dijadikan sebagai acuan dalam menetapkan tarif SPP Bulanan pada Sekolah Bola Basket DBL Academy. Penelitian ini juga digunakan sebagai pembanding antara penggunaan metode Activity Based Costing dengan metode penentuan tarif yang sudah ada. Metode analisis yang digunakan adalah studi kasus, karena dengan menggunakan studi kasus akan mampu member gambaran yang mendalam tentang bagaimana penentuan tarif SPP Bulanan dengan menggunakan Activity Based Costing pada Sekolah Bola Basket DBL Academy. Hasil dari penelitian ini menunjukkan bahwa dari perhitungan tarif SPP Bulanan menggunakan Activity Based Costing apabila dibandingkan dengan tarif yang sudah ada, maka Activity Based Costing memberikan hasil yang lebih kecil untuk program regular dan premium. Perbedaan tarif ini terjadi karena pembebanan biaya overhead pada masing-masing produk. Pada perhitungan akuntansi biaya tradisional, biaya overhead pada masing-masing produk dibebankan hanya menggunakan satu cost driver saja.

scholarly journals Pendekatan Manajemen Biaya Untuk Meningkatkan Ketepatan Penghitungan Biaya Melalui Time Driven Activity Based Costing System

2018 ◽  
Vol 1 (2) ◽  
pp. 158
Author(s):  
AGUNG LISTIADI
Keyword(s):  
Management System ◽  
Cost Driver ◽  
Primary Factor ◽  
Activity Based Costing ◽  
System Operation ◽  
High Quality ◽  
Precise Information ◽  
Costing System ◽  
Pass Through

Expense represent important factor in company and emulation in market. Consumer wil chosen producer capable to yield service and product owning high quality at the price of cheap. Management system of the Expanse of emphasizing at disclosure compared to alocation. And Management persuant to ctivity is heart of system operation of contemporaary operation. At least there is two primary factor which mus to be paid attention in location of tricker of expanse of (drifer cost) this is: expanse of correlation storey; level and measurement between driver cost with cunsumption of overhead real. Dreiver cost divided into two category, that is structural of cost driver and Cost driver executional represent base used to burden the expanse of which is gathered at pool cost to So that with calculation of expanse pass/through Time Driven costing activity-based, company obtain; get more accurate and precise information.

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.

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