Activity Based Costing Method Research Articles

Penentuan tarif sewa kamar kost melalui perhitungan harga pokok kamar menggunakan metode activity based costing (Studi kasus Eben Kost Manado)

Achieving maximum profit is closely tied to specific calculations regarding the costs incurred to produce a service product, such as the cost of a room. Activity-Based Costing (ABC) is one method used to calculate the cost of a room by evaluating expenses based on the resources consumed by various activities. The objective of this research is to determine room rental rates by calculating the cost of a room using the Activity-Based Costing method at Eben Kost Manado. The research employed a qualitative descriptive approach. Data collection techniques included interviews and documentation. The findings indicate that the room rental rates determined using the Activity-Based Costing method are lower compared to those set by Eben Kost because the ABC method allocates all activity costs to each room type precisely based on each activity's consumption.

Analysis of Determining Inpatient Room Rates Using the Activity-Based Costing Method in a Healthcare Setting

Background: Hospitalization rate determination is crucial for healthcare cost management, yet traditional methods often lead to cost distortions. Specific Background: Muhammadiyah Tuban Hospital has historically utilized conventional costing methods, which have resulted in higher than necessary charges for hospital services. Knowledge Gap: There is limited research comparing traditional costing methods with more accurate and modern approaches like Activity Based Costing (ABC) in the Indonesian healthcare context. Aim: This study aims to compare hospitalization rates at Muhammadiyah Tuban Hospital using traditional methods and the ABC method, to highlight discrepancies and propose a more accurate costing framework. Results: The ABC method yielded significantly lower hospitalization rates across various classes (VIP, Class 1, Class 2, and Class 3) compared to traditional methods. For instance, the ABC rate for the VIP class was IDR 270,619, compared to IDR 495,000 set by traditional methods. Novelty: This study introduces the application of ABC in an Indonesian hospital setting, providing a clear contrast in cost-efficiency against traditional costing. Implications: The findings suggest that adopting the ABC method can lead to more precise and lower hospitalization rates, potentially reducing healthcare costs for patients and improving financial management within hospitals.Highlights: Cost Accuracy: ABC method offers more precise hospitalization rates than traditional methods. Economic Impact: Adoption of ABC can lower patient costs and improve hospital financial management. Innovation: Introduces a modern costing method to Indonesian healthcare, suggesting a shift from outdated practices. Keywords: Activity Based Costing, Hospitalization Rates, Cost Management, Healthcare Economics

IMPLEMENTASI METODE ACTIVITY BASED COSTING (ABC) DALAM MENENTUKAN TARIF SUMBANGAN PEMBINAAN PENDIDIKAN (SPP) PADA INTEGRATED PRE-SCHOOL HUSNA BANJARBARU BERDASARKAN PERSPEKTIF KEUANGAN

ABSTRACT Cost accounting is a field of accounting that tracks, records, and analyzes costs. In this case, the preschool education institution will certainly require costs or funding from student fees. The purpose of this study is to explain how to determine the cost of Husna Banjarbaru Integrated Pre-School Education Program that has been implemented so far and is also expected to know how to determine costs using the ABC (Activity Based Costing) method. Of course, the determination of user costs must be in line with the financial point of view to help manage company finances appropriately and effectively so that company finances are always stable. The analytical approach uses a descriptive method design to provide an overview of the problem solving. Data collection techniques used in this research include interviews, observations, documentation, and literature review. Data analysis techniques use quantitative and qualitative analysis. This research was conducted in Integrated Pre-School Husna Banjarbaru, Srikaya Street No. 21, Guntung Paikat Village, South Banjarbaru District. The results of this study show that the determination of tuition fees (SPP) in Integrated Pre-School Husna Banjarbaru is still using traditional methods and the calculation results still do not give an accurate picture of the cost of education. By using Activity Based Costing (ABC) based costing, it can be seen that the determination of tuition fees is more accurate.

Time and Cost Savings of Virtual Established Plastic Surgery Care Using Time-Driven Activity-Based Costing: Lessons from An Academic Clinic.

Various surgical subspecialties, including plastic surgery, have begun to embrace virtual clinic visits, especially since the COVID-19 pandemic. However, the impact of video visits on time optimization and cost incurred in outpatient plastic surgery clinics has not been studied. Using the time-driven activity-based costing (TDABC) method, we examined the time and cost of in-person and virtual visits at an academic plastic surgery clinic. We formulated process maps for four visit types: physician-led in-person, physician assistant-led in-person, physician-led virtual, and physician assistant-led virtual. The time associated with each visit type was generated by direct observation. The cost associated with each visit type was calculated from representative salary information and estimation of resource costs. Virtual visits took on average less time (25.3 minutes for physician-led visits and 24.4 minutes for physician assistant-led visits), compared to in-person visits (48.2 minutes for physician-led and 41.1 minutes for physician-assistant-led visits) (p<0.001). Virtual visits were also cheaper, at $52.80 for physician-led visits and $20.70 for physician assistant-led visits, compared to in-person visits ($261.13 for physician-led and $236.00 for physician assistant-led visits). Non-provider activities made up the majority of traditional in-person visits (75.7% of the visit for physician-led and 77.6% for physician assistant-led visits), which contributed to higher overall cost of in-person visits for both groups of providers. Virtual clinic visits can produce time and cost savings without reducing the amount of face-to-face time between providers and patients. Virtual visits can be a useful adjunct to traditional in-person visits.

Analisis Penerapan Metode Activity Based Costing dalam Penentuan Harga Pokok Produksi pada UMKM Nurul Aini Mojokerto Tahun 2024

The purpose of this study was to determine and analyze the calculation of the cost of production at Nurul Aini UMKM in Mojokerto using traditional accounting and determining the cost of production based on the activity-based costing (ABC) method. This study uses a quantitative descriptive approach. Data were collected through documentation and interviews. The analysis used is quantitative descriptive analysis, which is an analysis based on decisions. The results of the study are as follows: 1. By using a traditional approach to calculate the cost of production at Nurul Aini UMKM, it was found that the raw materials used to produce motorcycle seats were 37,253,166,000, labor costs were 2,350,570,000, and factory overhead costs were 339,960,000. Thus, the cost of production of Nurul Aini UMKM in 2023 is IDR 39,943,696,000. 2) The activity-based costing system is used to calculate the COGS of Nurul Aini UMKM. To begin, the costs of activity resources must be examined. It begins by identifying and dividing activities into four levels of activity: unit level, batch-related costs, product enhancement costs, and facility enhancement costs. Next, product costs must be examined. where the cost drivers used by each product are used to limit factory overhead costs.

Cost of hemophilia A in Brazil: a microcosting study

BackgroundPatients with Hemophilia are continually monitored at treatment centers to avoid and control bleeding episodes. This study estimated the direct and indirect costs per patient with hemophilia A in Brazil and evaluated the cost variability across different age groups.MethodsA prospective observational research was conducted with retrospective data collection of patients assisted at three referral blood centers in Brazil. Time-driven Activity-based Costing method was used to analyze direct costs, while indirect costs were estimated based on interviews with family and caregivers. Cost per patient was analyzed according to age categories, stratified into 3 groups (0–11;12–18 or older than 19 years old). The non-parametric Mann-Whitney test was used to confirm the differences in costs across groups.ResultsData from 140 hemophilia A patients were analyzed; 53 were 0–11 years, 29 were 12–18 years, and the remaining were older than 19 years. The median cost per patient per year was R$450,831 (IQR R$219,842; R$785,149; $174,566), being possible to confirm age as a cost driver: older patients had higher costs than younger’s (p = 0.001; median cost: 0–11 yrs R$299,320; 12–18 yrs R$521,936; ≥19 yrs R$718,969).ConclusionThis study is innovative in providing cost information for hemophilia A using a microcosting technique. The variation in costs across patient age groups can sustain more accurate health policies driven to increase access to cutting-edge technologies and reduce the burden of the disease.

Approaches to determining the cost of laboratory tests

Background. Determining the cost of laboratory tests is a significant factor in the context of economic analysis and management of clinical diagnostic laboratories. Information about costs allows medical organizations to plan operational activities more efficiently, optimize resource utilization, and exercise control over expenditures. These measures are aimed at improving the financial position and enhancing the operational efficiency of the laboratories.Objective: to review various methods for calculating the cost of laboratory tests.Material and methods. The study included the collection and analysis of publications on calculating cost of laboratory tests, determining their prime cost in PubMed/MEDLINE and Google Scholar databases, as well as in Google and Yandex search engines for similar “cost laboratory test” query. The regulatory documents of the Russian Federation in this area were considered.Results. For calculating the prime cost of laboratory tests such methods as direct costing, regulatory prime costing, total prime costing, activity-based costing (ABC), standard costing, costing for base service, department costing, cost-volume analysis are used. The ABC and standard cost methods provide the most accurate assessment of the impact of various factors.Conclusion. The approaches established by regulatory documents do not contradict each other and represent the implementation of total costing method. At the same time, a medical organization may use other methods for calculating the cost of laboratory tests, depending on the objectives of the analysis, the specifics of the laboratory and the cost accounting method adopted in accounting policy, the management accounting system.

Penerapan Metode Time-Driven Activity-Based Costing untuk Menetapkan Harga Pokok Penjualan Full Container Load pada PT. Sinar Garuda Pasifik di Surabaya

This study applies the Time-Driven Activity-Based Costing method to determine the cost of goods sold for Full Container Load shipping services at a freight forwarder company in Surabaya and examines its impact on the current determination of the cost of goods sold. Some previous research has focused on employee efficiency with precise measurements, thereby overlooking the strengths of the Time-Driven Activity-Based Costing method, which are simplicity and reliance on estimation. This study found that indirect costs contribute insignificantly to the determination of the cost of goods sold. Nevertheless, this method is capable of accurately determining the cost of goods in transactions with low-profit margins, which is characteristic of companies like freight forwarders, where the percentage of direct costs in the cost of goods sold is high.

ANALYSIS OF THE USE ACTIVITY BASED COSTING IN DETERMINING TUITION FEES

Numerous educational institutions in Indonesia suffer financial deficits, negatively impacting educational quality. This study aims to ascertain the Tuition Fees at Nurul Fajri Islamic Boarding School Majalengka utilizing the Activity-Based Costing (ABC) method. It investigates the application of the ABC method in determining Tuition Fees within educational foundation institutions, a novel approach, particularly for pesantren foundations. The research adopts a qualitative methodology with a problem-focused approach. Data collection involved interviews and an analysis of pertinent financial and operational documents. Cost activity data was processed using ABC costing, resulting in tuition fees calculations based on the ABC method. These calculations were then juxtaposed with the Tuition Fees established by the school administration. The analysis identified a cost discrepancy (undercharging), where the cost per student exceeded the total Tuition Fees income and School Operational Funds (SOF) or Government Subsidy. For junior high school grades 1, 2, and 3, the differences were Rp 68,092, Rp 65,877, and Rp 85,668, respectively. For high school levels 1, 2, and 3, the discrepancies were Rp 6,674, Rp 49,014, and Rp 51,354, respectively. The study recommends that the school increase the monthly tuition fees to adequately cover the actual costs of education.

The Cost Calculation Method Based on Activity Is Known as The Activity-Based Costing (ABC) Method

This paper provides a detailed explanation of the activity-based costing method, which is a precise approach for determining and allocating costs in final products. Firms typically do not implement the activity-based costing method due to the need for specialised training and increased fees. Consequently, many companies opt not to utilise this method for product costing. The study addressed the challenges encountered during the implementation of the activity-based costing method. The study also outlines the necessary steps for a fair implementation and highlights the advantages of this method over the traditional method of product costing. Furthermore, it explores how the enterprise's expansion reveals the absorption of certain costs not allocated to products.

STUDI LITERATUR: POPULARITAS DAN TINGKAT KEBERHASILAN ACTIVITY-BASED COSTING DI BERBAGAI NEGARA

This study aims to determine the popularity of Activity-Based Costing (ABC) methods and the success rates of countries adopting the ABC system. The research method used is a literature review. The main journal was used as a basis for comparison. The abstract is "Activity Based-Costing Around The World: Adoption, Implementation, Outcomes, and Criticism," supported by 20 other journals, both international and national. The most commonly used method in the supporting journals is the descriptive qualitative method. The study results show that the popularity of the ABC method is still dominated by Western (European) countries, which are generally developed countries. Meanwhile, in Asia and Africa, only a few companies implement the ABC method due to internal and external obstacles within the organization. On the other hand, some ABC-adopting countries, have different success rates in its implementation. This variation is generally caused by the availability of organizational resources, different levels of support from top management, and most commonly, insufficient understanding and knowledge about ABC.

Dilemma of Local Health Service Policy in the Era of National Health Insurance: A Political Perspective Analysis

The strengthening of political priorities in terms of developing health policies for various parties needs to be carried out both for the doctor and for the recipients of health services. Various health policies are influenced by various things based on certain contextual factors. In the Minister of Health Number 59 of 2014, it is stated that the amount of capitation funds is for first-level dental health services in independent practices, but it is not stated how much the capitation rate is for dental health services at community health centers. This research uses quantitative descriptive methods. The calculation method used is the Activity-Based Costing (ABC) method. The results of this study show that the average unit cost of dental health services at the Community Health Center is IDR. 104714. The largest unit cost is the GIC patching action. By using the activity-based cost calculation method, it can be seen that the largest costs for dental health services at the Community Health Center come from employee costs. And this shows that the situation is not fair for various parties. This raises a dilemma that is important to be discussed. The capitation rates set by the government are considered inappropriate for dentists in first-level health facilities. This can cause a decrease in the quality of health services provided by dentists at community health centers.

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.

Perhitungan Biaya Produk Berdasarkan Activity Based – Costing

Activity-based costing (ABC) is an important method of determining manufacturing costs that focuses on the activities involved in the production process. This article aims to present a review based on a literature review related to the application of the ABC method in product costing, along with an explanation of the steps for calculating product cost by this method. In addition, this study also analyzes the results of applying the ABC method in increasing the accuracy and transparency of product cost calculations Operational costing (ABC) is an important method of determining production costs that focuses on the activities involved in the production process. This article aims to make comments on the basis of an overview of documents related to the application of ABC method in product costing, as well as explain the steps to calculate product cost by this method. Data from various related studies, articles and books are used to form a basic understanding of the practical steps in calculating product cost by ABC . method. Literature review is also used to identify the benefits and results of applying this method in increasing the company's production efficiency. The results of the literature review show that the application of the ABC method can produce a more accurate and transparent product cost calculation. With the ABC method, companies can identify the level of contribution of each activity in the production process, thus enabling management to determine the cost of products more precisely .

Perhitungan Iuran Dana Pengembangan Pendidikan dengan Menggunakan Metode ABC Pada Sekolah Raudatul Ilmi di Kota X

This study aims to calculate tuition fees appropriately and fairly at Raudatul Ilmi School in X City using the Activity Based Costing (ABC) Method and to find out the differences between the Traditional Method and the ABC Method. This research uses qualitative methods that collect data using interviews and documentation. The analysis technique used by this research uses descriptive analysis. The results obtained are the calculation of the tuition fee rate using the Traditional method shows the Play Group (KB) level rate of Rp 130,220, the Kindergarten (TK) level of Rp 168,315, the ABC calculation shows the KB level rate of Rp 160,055 and the Kindergarten level of Rp 200,561. These results cause undercosting at Raudatul Ilmi School.

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.