EMPLOYEES’ PERCEPTION OF THE IMPLEMENTATION OF ACTIVITY-BASED COSTING IN CATTLE FEEDLOT COMPANY

Abstract

This paper reports the result study of the employees’ perception about implementing of Activity-Based Costing (ABC) system in PT XYZ Cattle Company. The findings suggest that ABC system implementing has several objectives that were: (1) performance measurement in each department, (2) produce the reporting easily, (3) appropriate or better allocation for overhead, (4) better cost control, and (5) support produce financial reporting. Impeding factors of implementation of ABC system that were (1) technical support availability, (2) management support availability, (3) qualified staff availability, (5) sufficient knowledge about ABC system, and (6) availability of communication within company. Suggesting further finding of contribute success factors of ABC system implementation that were (1) high level management support, (2) qualified human resources, (3) collaboration and communication within company, (4) adequate training and (5) continuously consistency from management. Overall all employees’ perception has positive view and highly recommendation to implement the ABC system in company.