Activity Based Costing Method Research Articles

Analyzing and Simulating Evolution of Subsidy–Operation Strategies for Multi-Type China Railway Express Operation Market

The China Railway Express stands as a crucial facilitator of trade across the land routes of Eurasian countries. During its initial developmental phase, the China Railway Express heavily relied on subsidies to establish a market presence. This dependency hindered its independence and sustainability. Hence, there exists a paramount need to regulate the subsidy market and institute more rational operation strategies. This study focuses on the dynamics of the subsidies and operations in the market for the China Railway Express under different types of development models. It uses evolutionary game theory and the Activity-Based Costing (ABC) method to describe the dynamic evolution of four cases between local governments and operating-platform enterprises. Four corresponding lines were selected as instances: from Xiamen, Wuxi, Changsha, and Zhengzhou to Malaszewicze, Poland. The findings conclude that the optimal conditions for the development of the China Railway Express market exist when operating-platform enterprises possess higher assets and the local government’s supervision and punishment of the market are relatively weaker. This study offers valuable insights for guiding subsidy and operational decision-making processes for the China Railway Express.

Proposed Implementation Of Activity-Based Costing To Determine Cost Allocation In Manufacturing Company PT. S

This research discusses the proposal for implementing Activity-Based Costing (ABC) in the cardboard box manufacturing company, PT. S, focusing on Plant 4 located in West Java. The products produced include standard A1 cardboard boxes, A1 printing, plain die-cut boxes, printed die-cut boxes, and top-bottom boxes. The application of the ABC approach is carried out with the intention of presenting more detailed cost information through the identification and allocation of costs to the various activities involved in the production process. The traditional method appears to be inappropriate as overhead allocation only burdens direct raw material costs, direct labor costs, shipping costs, and sales commission to products using percentages from historical data as a reference for the selling price of the product. The research type is problem-solving with a descriptive qualitative research method. The results indicate that the ABC method provides more accurate calculations by allocating costs per activity that are then assigned to products. Among the five studied products, it is found that the plain A1 product is the least profitable. On average, the allocation of product costs experiences undercosting, except for plain die-cut products that experience overcosting. PT. S needs to consider the use of the ABC method in product cost and product selling prices to be able to reduce costs and increase the profitability

THE RECEPTIVENESS PUZZLE: UNDERSTANDING WHY SMALL FAMILY BUSINESSES STRUGGLE WITH ACTIVITY-BASED COSTING ADOPTION

This study examines the challenges associated with the adoption of activity-based costing (ABC) in a small family business in a less developed country. Through a case study of PT XYZ, a logistic company, the study found that technical factors, including unpredictable customer requests, varying duration of activities, and uncertainty around distance and fuel consumption for each truck, make adopting the ABC method challenging. Organizational factors, such as a top-down hierarchy and the negative perception of the owner affecting the rest of the hierarchy, also contribute to the non-acceptance of ABC. Additionally, key agents within the company did not demonstrate enthusiasm toward changes. The cultural and contextual factors and unique characteristics of small family businesses further make them less receptive to adopting new ideas or changes, including the ABC method. This study offers practical implications for introducing changes, such as improving data collection processes, establishing better communication channels with family business owners, and seeking external expertise or advice from professionals with experience in family business management. The study expands the current discussion on ABC implementation and contributes to the family business literature by linking family business characteristics with the adoption of the ABC method.

Analysis of the Application of the Activity-Based Costing Method to Increase Accuracy in Determining the Calculation of the Cost of Goods Production in the Rakik Ibu As Padang Business

Tujuan dari penelitian ini adalah untuk mengetahui penerapan Metode Activity Based Costing untuk meningkatkan akurasi dalam menentukan perhitungan harga pokok produksi. Metode penelitian yang digunakan dalam penelitian ini adalah metode penelitian deskriptif melalui pendekatan studi kasus yang mengambil lokasi penelitian di rakik as kacang ibu as kota padang. Hasil penelitian ini menunjukkan perhitungan harga pokok produksi menurut metode akuntansi biaya tradisional sebesar Rp. 169.907.666 sedangkan perhitungan harga pokok produksi menurut metode Activity Based Costing sebesar Rp. 5.363.144.533 sehingga terdapat selisih perhitungan harga pokok produksi Rakik Buk As Kota Padang lebih tepat menerapkan Activity Based Costing dengan selisih sebesar Rp. 5.193.236,873 lebih rendah dibandingkan metode akuntansi biaya tradisional, karena Overhead Pabrik dibebankan ke banyak Cost Driver sehingga mampu mengalokasikan biaya aktivitas ke produk secara tepat dan akurat berdasarkan konsumsi setiap aktivitas.

Activity Based Costing-Sebuah Kajian

The unit cost calculation method with Activity Based Costing (ABC) is an efficient system. This system is certainly a system that is far more accurate than the traditional system. It is important for a company to know the units of the product or service it produces. Unit cost information becomes important for managerial decision making. The importance of the right decision certainly requires the company to use the right calculation method. Thus this study conducts a study of the ABC method that can be utilized properly by companies. This research method is a literature study conducted to gain more understanding of Activity based costing (ABC) research. This study carried out the stages starting from selecting topics, collecting literature, to reviewing the literature. The results of this study indicate that the application of this method requires a large commitment and resources from the organization and if this is fully implemented then the quality of the use of this method is very beneficial for companies in decision making

ANALISIS PERHITUNGAN UNIT COST SEWA KAMAR KELAS II AR RAHMAN DENGAN METODE ACTIVITY-BASED COSTING (STUDI KASUS DI RSU PKU MUHAMMADIYAH BANTUL)

Background: Determination of unit costs of inpatient room rental in PKU Muhammadiyah Hospital of Bantul is currently using traditional methods of real cost. When viewed in terms of space, design space and facilities for wards between class II class II Ar Rahman with other wards there is a difference. But the room rental unit cost of hospitalization between class II and class II Ar Rahman other similar effect. Methods: The study was conducted in PKU Muhammadiyah Hospital of Bantul. This type of research is a qualitative descriptive case study design. The sample in the study were nurses and managers supporting units taken purposively sampling. Cost analysis method used is the Activity-Based Costing (ABC). Results and Discussion: The unit cost of room rental class II Ar Rahman is calculated by the method of Activity-Based Costing (ABC) amounting to Rp. 77.540, -, while those issued by the hospital of Rp. 42 308, -. This indicates that the unit cost is calculated by Activity-Based Costing is greater than the unit cost hospitals. In Activity-Based Costing (ABC), indirect costs (overheads) charged to a cost driver while in the traditional system is only charged on a cost driver. Conclusions and Suggestions: Method of Activity-based Costing (ABC) can provide information regarding the calculation of more accurate cost, so it can be used by management to take accurate decisions in the budgeting and planning costs. The hospital should conduct an evaluation unit cost for rooms that are used so as not to harm the hospital or the patient.

ANALISIS PERHITUNGAN UNIT COST PELAYANAN SIRKUMSISI DENGAN PENDEKATAN ABC DI KLINIK SETIA BUDI JAMBI

Circumcision costing couter and conventional methods in Setia Budi Clinic Jambi using traditional accounting systems, so the services offered to be cheaper (under costing) or more expensive (over costing) of the costs that should be consumed on these services. It would be fatal to the hospital, especially in a highly competitive market conditions. Thus researchers need to review the unit cost in the circumcision services costing more accurate in the details of the cost and accuracy of charging better, then a decision will be taken by the management would be better and appropriate. Research performed using a qualitative descriptive design. Instruments used were documentation guidelines owned by hospital and stopwatch. Cost analysis method used is based on ABC (Activity Based Costing) system. The results of this study show units of cost to perform circumcision services at Setia Budi Clinic Jambi which is calculated using the Activity Based Costing (ABC) system is Rp 240.242,59 for the M conventional services and Rp 385.200,57 for M couter services. From the calculation of unit cost pelayananan circumcision in Clinical Setia Budi Jambi is calculated using the ABC method gives results smaller M convenstional service. While in service M couter, ABC calculation gives greater results.

ANALISIS PERHITUNGAN BIAYA SATUAN TINDAKAN ORIF (Open Reduction Internal Fixation) FRAKTUR FEMUR MENGGUNAKAN METODE ABC (Activity Based Costing) (STUDI KASUS DI RS PKU MUHAMMADIYAH BANTUL)

Background: The determination of operating room rates at PKU Muhammadiyah Hospital in Bantul is currently using fee for service method where the operating rate is determined by the calculation of the cost components that occur as the cost of medical services, consumables, medicines, and the rent of operating room, but it has not included all the components of the activity-based costs associated with clinical pathways. However, this surgical procedure may result significant costs to the hospital.
 Methods: The study was conducted at PKU Muhammadiyah Hospital in Bantul. This research is descriptive qualitative case study design. The sample were the patients who underwent an operation of ORIF for Femoral Fractures without complications that met the inclusion and exclusion criteria. Cost analysis method used was the Activity-Based Costing (ABC).
 Results and Discussion: The unit cost of ORIF for Femoral Fractures which was calculated by the method of Activity Based Costing (ABC) was 8,157,726 rupiahs, while the real cost spent by the hospital was 9,035,885 rupiahs. The amount of real cost on ORIF for Femoral Fracture specified by RS PKU Muhammadiyah Bantul was higher than the unit cost calculated based on Activity-Based Costing method. The obtained difference was a positive difference, which was 878.159 rupiahs (10,76%). In the Activity-Based Costing (ABC), indirect and direct cost (overhead) are charged at some cost drivers, while the traditional system is only charged on a cost driver.
 Conclusions and Recommendations: Based on the calculation of unit costs obtained, it can be concluded that the unit cost of ORIF for Femoral Fracture in Central Surgery Installation PKU Muhammadiyah Hospital in Bantul with Activity- Based Costing method is lower and more proportionate with the activity. However, the hospital should also apply the calculation of the unit cost to all the types of service especially for surgery in order to identify and examine the cost components which are subject to change at any time and cause some disadvantages to the hospital accounting.

ANALISIS PERHITUNGAN UNIT COST PADA TINDAKAN TONSILEKTOMI DENGAN METODE ACTIVITY BASED COSTING (STUDI KASUS DI RUMAH SAKIT PKU MUHAMMADIYAH YOGYAKARTA)

Background: Private hospitals should strive to have the technical capability to manage and calculate costs based on the condition that both hospitals and facilities that can use the Indonesian Case Based Group (INA CBG) appropriately. RS PKU Muhammadiyah Yogyakarta as one of the private hospitals that participate and support the government's program of the Sistem Jaminan Sosial Nasional.Calculating the unit cost of a tonsillectomy was done as a study of the correspondence between the cost of services and a health claim
 Methods:The study was a descriptive qualitative case study design. Tonsillectomy unit cost calculation using activity based costing (ABC) with the goal difference obtained unit costs plus a margin to claim CBG INA in 2012.
 Result: Based on the calculation, the unit cost of services tonsillectomy with activity-based costing method is Rp. 2.265.732. ABC unit cost calculations result in a greater cost than the claims of INA CBG so get the difference in cost of Rp. 785.034.
 Conclusions: There is a negative difference between the calculation of service bi tonsillectomy ABC method with INA CBG claim. So that needs to be done by the hospital cost efficiency.

Reconstruction of Caesarean Section Service Rates for National Health Insurance Patients

RSIA Permata Bunda as a JKN provider is paid according to the INA-CBG rate by BPJS Kesehatan, the amount of which does not match the costs incurred by the hospital so that there is a negative difference between the hospital section caesarea (SC) rate and the INA-CBG rate which reached 2 billion in 2021. The aim of this study was to reconstruct the SC service rate for JKN patients so that efficiency occurs. This study was an explanatory sequential mixed method design, preceded by quantitative research with unit cost calculation using the activity based costing (ABC) method and the average fee for service rate for hospital SC services and then qualitative research for interviews with informants. The unit cost calculated using the ABC method is lower than hospital package rates, fee for service rates but higher than INA-CBG rates for SC severity level I services in treatment classes I, II and III which causes losses for the hospital. Efficiency efforts that can be carried out by hospitals are through tariff reconstruction by adjusting LOS (length of stay), optimizing drug use and supporting examinations according to clinical pathways and changing the calculation of medical services from fee for service to a package system.

The Activity-Based Costing System Applied in Higher Education Institutions: A Systematic Review and Mapping of the Literature

Objective: In recent years, management accounting in higher education institutions has undergone significant changes due to the various New Public Management (NPM) reforms. One of the management accounting tools that has been advised to HEIs is Activity-Based Costing (ABC). With this evolving field of research, this article aims to analyze research in international scientific journals focusing on ABC in HEIs. To this end, this article provides an overview of how research in this area has evolved. We present an overview of the past, present, and future of research in the field of the ABC model applied in HEIs. Methodology: Through a systematic literature review, the Web of Science and Scopus databases were used as a source of articles. Our analysis is based on a total of 139 articles. We used a systematic literature review combining different bibliometric techniques. These allowed us to develop a mapping of the literature on the application of the ABC model in HEIs, which helps us better understand the research related to the topic and its evolution. Results: It is concluded that the existing literature on this topic has developed along three lines of research: implementation of ABC as a cost-control method, TDABC as a time-based cost-control method, and the application of the ABC Method in health services. Originality: Based on the results found, this article identifies avenues of research that can be explored, namely the study of the application of ABC in the education sector, and provides a research agenda for future studies.

Calculation of the Cost of Training Medical Students in One of the AJA Universities of Medical Sciences Using Time-Driven Activity-Based Costing Method

Background: Estimating the total cost of services is crucial for utilizing available resources more efficiently and effectively. By employing the time-driven activity-based costing (TDABC) method, not only can costs be calculated, but also the efficiency and unused capacity of resources can be assessed. Objectives: This study aimed to calculate the cost of education for each medical student at one of the AJA Medical sciences Universities in 2022 using the TDABC method. Methods: This quantitative study was conducted cross-sectionally and retrospectively in a descriptive-analytical manner. The data were collected and analyzed through interviews and observations. To analyze and allocate costs, administrative and educational departments were categorized into three levels: Overhead, intermediate, and final activity centers. Then, using the TDABC approach in Microsoft Excel 2013 software costs from the overhead and intermediate activity centers to the final activity center and students. Results: The study estimated the average cost of educating each medical student to be approximately IRR 6 267 568 065. Additionally, the unused capacity of resources in overhead and intermediate centers was observed to be 30% (range: 4 - 44%) and 33% (range: 26 - 43%), respectively. Conclusions: The findings indicated that the cost per student is somewhat reasonable; however, there is a high level of unused capacity in the university and faculty activity centers. The effective management of human resources and equipment is necessary to enhance service delivery processes, increase productivity, and reduce unused capacity.

RWD73 Exposing the True Economic Impact of Stroke: A Comparative Analysis of Time-Driven Activity-Based Costing and Reimbursement Methods in Brazil

RWD73 Exposing the True Economic Impact of Stroke: A Comparative Analysis of Time-Driven Activity-Based Costing and Reimbursement Methods in Brazil

Analisis Penentuan Tarif Sewa Kamar Hotel Dengan Metode Activity-Based Costing (ABC) Pada Hotel Gajah Mada Lumajang

Along with the increase in service companies, especially in the hotel business sector, there is competition. The business strategy that can be carried out by hotel management in winning the competition is to provide the best facilities and services to hotel guests. Therefore, it takes the right calculation in determining room rental rates. The activity-based costing (ABC) method is very effective for determining room rental rates, because it provides an accurate and efficient calculation by calculating the costs incurred as a result of the provision of facilities, so it can help reduce cost deviations. This study aims to analyze the determination of hotel room rental rates using the activity-based costing (ABC) method at Gajah Mada Hotel Lumajang. This type of research is descriptive with a quantitative approach. The results obtained are that the hotel room rental rates carried out by Gajah Mada Lumajang Hotel have a greater value compared to hotel room rental rates using the activity-based costing (ABC) method, namely with a difference in room rental rates of IDR 14,117.00 for room types garden suite room, and IDR 8,096.00 for the executive suite room type. This difference in results is experiencing overcosting.

Strategi Menentukan Harga Pokok Produksi yang Kompetitif Menggunakan Metode Activity Based Costing di PT. XYZ Food

PT XYZ Food realized the importance of accurate costing strategies to increase company profitability. The traditional method of determining the cost of goods manufactured led to undercosting or overcosting, which further resulted in a low selling price. Therefore, the company implemented the Activity Based Costing (ABC) method to calculate the cost of goods manufactured by identifying and classifying activities into four levels and setting cost targets for each activity level. The results of the ABC method showed that the cost of Snack Series 10 gr was Rp. 17,246 per kg and Mie Sedap Series 9 gr was Rp. 17,247 per kg. Through pricing structure simulations, the company could reach the Highest Retail Price of Rp. 500 without reducing margins, and even the margin of ABC was greater than the traditional method. Thus, the use of ABC in determining the cost of goods manufactured can help companies increase profits and get accurate prices in a competitive market.

Radiology Service Tariff Calculation Model Using the Activity Based Costing (ABC) Method at Naibonat Regional Hospital, Kupang Regency

Determination of health service tariffs also determines optimal health service outcomes. Determination of radiology examination rates at Naibonat Hospital until 2023 still refers to Regional Regulation No. 5 of 2012 concerning public service fees, where the determination of fees still uses the conventional calculation system, and there are changes in image processing modalities, tools, and materials used, this demands a rate adjustment. Calculation of rates using the Activity Based Costing (ABC) method, can be a solution to determine more accurate rates, supported by Pramawati's research (2021) which shows the results of determining rates are more accurate using the ABC method. The purpose of this study was to calculate the tariff pattern for radiological examinations at Naibonat Hospital using the ABC method and obtain an accurate tariff calculation model for radiological examinations. This research is a descriptive explorative study, with a quantitative approach using numerical data which aims to calculate a unit cost-based examination rate model by implementing an Activity Based Costing system on ultrasound examination of the abdomen, chest x-rays, abdomen, skull, and extremities. The data obtained was then subjected to qualitative analysis to obtain the steps for calculating tariffs using the ABC method. The results of this study indicate that the calculation model for radiological examination rates using the ABC method is valid. To find rates, first, determine the basic rate with the formula unit cost = direct cost + overhead, the results obtained are then calculated. Examination rates = cos unit + hospital services, so the examination rates at the Radiology unit of Naibonat Hospital, namely abdominal USG Rp 242.036, photo thorax Rp. 116,995, photo abdomen Rp. 150,321, photoskull Rp. 153,262, and a photo extremity Rp. 121,409.

Comparison Analysis of Rates by Unit Cost and INA-CBGs Rates in Hemodialysis Services at Hospital X

Comparison Analysis of Rates by Unit Cost and INA-CBGs Rates in Hemodialysis Services at Hospital X

Integration of primary contact physiotherapists in the emergency department for individuals presenting with minor musculoskeletal disorders: Protocol for an economic evaluation.

1) To compare the average cost of an emergency department (ED) visit for various minor musculoskeletal disorders between two models of care (physiotherapist and ED physician or ED physician alone); 2) To evaluate the incremental cost-effectiveness ratio (ICER) of these two models of care over a 3-month period post-initial visit; and 3) To estimate the ICER of three ED models of care (physiotherapist and ED physician, ED physician alone, physiotherapist alone) over a two-year period. Obj.1: The costs incurred by participants in the two groups during their ED visit will be calculated using the Time-Driven Activity-Based Costing (TDABC) method. These costs will be compared using generalized linear models. Obj. 2: The ICER of the two models will be evaluated over three months via a cost-utility analysis that will combine costs and effectiveness data (quality-adjusted life years) using both Health system and Societal perspectives (patient + health system costs). Obj. 3: The 2-year ICER of the three above-mentioned models will be estimated using a mathematical model including a decision tree (0-3 months post-visit) and a Markov model (3-24 months post-visit), also using both Health system and Societal perspectives. Data to answer the three objectives will come from data collected during a randomized clinical trial (n = 78, CHU de Québec)which will be supplemented with data obtained via some of the CHU de Québec administrative databases (nominative data; SIURGE (ED management software), Cristal-Net (patient electronic record), and the ED's pharmacy transactions directory; administrative data: drug costs repository), the literature, and public cost repositories. This study will help to determine which model of care is most efficient for the management of individuals who come to the ED with minor musculoskeletal disorders. The increased involvement of various health professionals in the management of patients in the ED paves the way for the development of new avenues of practice and more efficient organization of services.

Cost Analysis of Telepharmacy Programs for Diabetes Mellitus Patients at Pharmacy

Diabetes mellitus is silent killer with an increasing prevalence every year. This study aims to analyze the cost of telepharmacy services among patients with diabetes mellitus at the pharmacy using the ABC method of observational research calculated based on the activities carried out and BEP to determine the advantages and disadvantages of the pharmacy. The calculation results using the activity-based costing (ABC) method, the average cost for telepharmacy service costs was Rp. 12,612.- and the average cost incurred to run a telepharmacy services program were Rp. 124,574.- After being analyzed the pharmacy that have provided telepharmacy services, most of them still experience losses, this is because pharmacy have not been able to cover all operational costs.

Time-Driven Activity-Based Costing of Prosthetic Dental Treatment

Purpose: Health systems worldwide have sustainability concerns due to rising demand and healthcare services costs. Value-based healthcare (VBHC) may solve all sustainability challenges by improving health outcomes. Improving outcomes is the only effective approach to cutting healthcare expenses. Cost-assessment methodologies that can give high-quality cost information are required to implement value-based initiatives. Time-driven activity-based costing (TDABC) method, a cost component of VBHC, has been increasingly adopted to close the cost-information gap.
 Materials & Methods: The study calculates prosthetic dental treatment costs with the time-driven activity-based costing method. Data for this study were collected from the prosthesis department of a dental hospital in 2019. 
 Results: The department's total practical capacity was estimated as 1,365,888 min for dentists and 328,320 minutes for patient consultants. The dentist capacity cost rate was calculated as 1.71 TL/min and for a patient consultant as 0.69 TL/min. Total prosthetic dental treatment costs range between 252.7TL and 304TL, depending on complications, emergencies, consultation or sedation needs.
 Conclusion: Activity-Based Costing provides accurate cost information and improves the process by making costs and activities more transparent. The prosthetic dental treatment process was presented transparently in the study. The costing model was designed to be expanded concerning the patient's urgency, the consultation and sedation needs. The cost of only one procedure was calculated in the study, and it is planned to evaluate all department activities in future research.