Abstract
Activity based costing (ABC) is an improved system of the traditional one. This system is calculating costs that provide accuracy and relevance in allocating overhead costs. This system has an overall cost tracking compared to traditional systems. This research uses a descriptive method of case study approach, which can describe the existence of a variable, symptom or condition. Using this method adjusts the ability to answer the problem under study and hopes to be able to provide clear results and answers. The results of the calculation of housing construction cost using the ABC system on housing in Sidoarjo are able to describe results more accurately and do not cause distortion of costs.
Highlights
Every company always calculates profit in production
To be able to achieve the company's goals in increasing profits, companies must properly pay attention to the costs incurred for production and determining the selling price
The role of production cost is very important in determining the selling price of the product
Summary
Every company always calculates profit in production. To achieve company goals in general need to pay attention to company policy. The growing business as it is today is limited to the benefits of ABC for information on production costs and as a concept that is broadly interpreted as information to motivate personal in improvising the process to produce products or services for customers This system is useful for overcoming the weaknesses of traditional systems made by industrial companies in Martusa et al (2010). Research conducted by Joseph et al (2019) had given result, that modern costing such as Activity Based Costing systems can optimize the benefits of techniques that enable them to identify, accumulate and manage the costs of company activities to ensure accuracy in decision making and produce business excellence and customer satisfaction. Resources are charged to cost objects based on their usefulness (Haneda et al 2018)
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