Activity-based Costing System Research Articles

Optimalisasi Tarif Layanan dengan Memperbaiki dan Meningkatkan Kualitas Pelayanan di Loka Litbangkes Pangandaran

In Indonesia, non-tax revenue is the second-largest source of state revenue, following tax revenue, and is expected to continue to increase in the future. To optimize non-tax revenue, tariffs are set, but using conventional However, if the tariff is set based on conventional methods, it can have a distorting effect. This study utilizes an activity-based costing system to establish service tariffs and assess quality at the Unit of Health Research and Development Pangandaran. An observational approach is employed, examining both primary and secondary data from a sample of 30 participants engaged in scientific tourism services and research collaboration. Technical terms are defined upon first use, and the language is objective, clear, and free of grammatical errors, following conventional formatting and citation guidelines. Non-probability sampling with a convenience approach was used. The data was evaluated using the activity-based costing system, servqual, and importance-performance analysis methods. The study conducted an importance-performance analysis of parameters related to cost and services with the goal of preserving the quality of service while avoiding high tariffs for users. Both rates were measured against the development efforts. The results showed that the scientific tourism rate yielded a cost of IDR5.884 and the research collaboration rate yielded a cost of IDR75.635, indicating a cost savings. Service quality attributes requiring improvement are responsiveness and assurance. Additionally, tangible elements and assurance must be aligned with tariff adjustments. This study offers valuable insights into setting non-tax state revenue tariffs in government work environments by emphasizing the quality of current services

Integrating accounting models with supply chain management in the aerospace industry: A strategic approach to enhancing efficiency and reducing costs in the U.S

This concept paper proposes the integration of accounting models with supply chain management in the aerospace industry as a strategic approach to enhancing efficiency and reducing costs in the United States. The aerospace sector faces numerous challenges, including complex supply chains, stringent regulatory requirements, and cost pressures. By combining accounting principles with supply chain management strategies, this approach aims to optimize operations, improve financial transparency, and foster collaboration among stakeholders. Key objectives of this initiative include streamlining financial processes, enhancing decision-making capabilities, and mitigating risks associated with supply chain disruptions. By leveraging accounting models such as activity-based costing, lean accounting, and performance measurement systems, organizations can gain insights into cost structures, identify inefficiencies, and allocate resources effectively across the supply chain. Moreover, integrating accounting with supply chain management enables real-time monitoring of financial performance metrics, enabling timely interventions and adjustments to achieve strategic goals. This approach also facilitates better coordination between finance and operations teams, leading to improved communication, alignment of objectives, and ultimately, enhanced organizational performance. In the context of the aerospace industry, where precision, reliability, and cost-efficiency are paramount, this integrated approach offers significant benefits. It enables companies to optimize inventory management, minimize waste, and identify opportunities for cost savings throughout the supply chain. Additionally, by fostering a culture of continuous improvement and data-driven decision-making, organizations can adapt more effectively to market dynamics and gain a competitive edge. This concept paper outlines the theoretical framework and practical implications of integrating accounting models with supply chain management in the aerospace industry. Through case studies, best practices, and implementation strategies, it provides a roadmap for organizations to embrace this strategic approach and realize its full potential in enhancing efficiency and reducing costs in the U.S. aerospace sector.

Activity-Based Costing Implementation for Capturing the Complexity of Manufacturing Process: The Case of CV XYZ

Background: In manufacturing companies, determining the cost of goods manufactured is more complex than in service and trading companies, considering that the production cost structure consists of direct raw material costs, direct labor costs, and factory overhead. In identifying the imposition of three components of production costs, the most difficult component to trace is factory overhead because, in determining factory overhead, various approaches and assumptions must be chosen as cost drivers, so it needs the right approach and assumptions for CV XYZ to achieve company performance. Objective: This study seeks to analyze the intricacies of factory overhead calculations under activity-based costing in comparison to the traditional plantwide rate approach used by CV XYZ, which utilizes production units as cost drivers. Method: The method used in this research is a case study on CV XYZ with interviews and documentation as data collection techniques. Interviews were conducted with accounting staff and heads of accounting departments through unstructured interviews. Documentation is carried out based on 2020 financial information. Results: The results of the analysis explain that the calculation of factory overhead applied, production costs, cost of goods manufactured (COGM), and cost of goods sold (COGS) calculated using the plantwide rate approach (production units as cost drivers) shows undercosts when compared to the activity-based costing system, so that the recognized profit is greater than it should be. The implications of undercosts cause information on the income statement to be unreliable, considering that the company has a variety of products and activities related to the production process Conclusion: The activity-based costing system uses more than one cost driver; thus, the activity-based costing system is a more accurate method to be applied by CV XYZ, which has product diversification. Keywords: Factory overhead applied, plantwide rate, activity-based costing system, profit and loss.

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.

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.

Factors affecting the adoption of activity-based costing in a South African state university

Orientation: There is a lack of empirical studies regarding the adoption and implementation of the activity-based costing (ABC) system in South African state universities, despite its advantages.Research purpose: This study reports the perceptions on the factors influencing the adoption of ABC held by finance and academic staff at the Durban University of Technology (DUT), KwaZulu-Natal.Motivation for the study: The lack of empirical studies demanded understanding of those factors that influence the adoption of ABC at state-owned universities in South Africa. Therefore, this study examined the factors influencing the adoption of ABC in a South African state university using the DUT as a case study.Research approach/design and method: The study adopted a mixed research method conducted with 202 staff members: 129 academics, 41 heads of departments and 32 finance staff.Main findings: The positive factors influencing the adoption of ABC included the organisational strategy, information technology, decision usefulness of cost information, contextual orenvironmental factors and the organisational structure. However, the systems adaptability theme was considered a barrier to the adoption of ABC.Practical/managerial implications: The information could inform strategic initiatives related to the adoption and implementation of ABC in the university or similar state-funded universities.Contribution/value-add: The study provided an empirical understanding of the factors that would hinder and assist the adoption and execution of the ABC system.

DETERMINE THE UNIT COST OF SECTION CAESAREA DELIVERY AT KENDANGSARI MERR MOTHER AND CHILD HOSPITAL SURABAYA

The data indicates that the birth rate in Indonesia is decreasing, which coincides with the emergence of numerous hospitals in various regions. This has led to intense competition among other service providers. Therefore, some changes are necessary to improve the company's services, particularly in the area of cesarean section deliveries, which are a popular choice among several mothers and recommended by some doctors. This study sought to determine the unit cost of caesarean section delivery at Kendangsari Merr Mother and Child Hospital in Surabaya, using the activity-based costing system. Qualitative research obtained data results through data collection techniques from various sources (triangulation), which continued until completion. Kendangsari Merr Hospital Surabaya has several excellent services in the field of Health, especially for childbirth, women's Health, and services for children's Health. In this case, the costs related to the childbirth section at the hospital are already relatively reasonable. Still, there may be some things that can support the calculation of fees to be even better so that it can reference hospitals to apply measures with the activity-based costing method because this method does not yet exist at Kendangsari Merr Mother and Child Hospital. Keywords: Activity Based Costing, Cesarean section delivery, Unit Cost.

Implementation Activity-Based Costing & Time-Driven Activity-Based Costing: A Systematic Literature Review

This study aims to determine the implementation of ABC in the business sector and TDABC in the business and health company sectors. This research was conducted by reviewing the literature contained in various studies on the implementation of Activity-Based Costing (ABC), and namely Time-Driven Activity-Based Costing (TDABC). Based on the literature review conducted in this study, the implementation of Activity-Based Costing (ABC) in the business sector can increase profitability and competitiveness for companies, while the implementation of Time-Driven Activity-Based Costing (TDABC) in the business and health company sector can increase efficiency and make more accurate decisions and the application of TDABC also shows improvements in the weaknesses of the ABC system.

Activity-Based Costing (ABC) in the Manufacturing Industry: A Literature Review

Activity-based costing (ABC) is a way to figure out actual costs. It has become an essential part of both manufacturing and service organizations. This study aims to figure out the effect of the ABC on the manufacturing system. The data was collected from different countries. The method of this study is the systematic Literature Review of the last ten years, 2012-2022. Activities-based costing (ABC) is a good system because it was adopted by many manufacturing businesses to achieve several benefits, including cost ascertainment, which helped them make wise price decisions, cost reduction, which increased profitability, increased productivity, time and resource savings, and improved production quality. Lack of information and inadequate understanding of how to use the ABC system in their company were to blame for companies that did not accelerate its use. Using activity-based costing is effective.

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.

Cost Distortion and Profitability: Evaluating Activity-Based Costing Systems


 
 
 This study aimed to investigate the implementation of Activity Based Costing System (ABC) on cost distortion and profitability in PT. Bina Graha Sejahtera. The research method used was a quantitative descriptive study with field research techniques. The research object was PT. Bina Graha Sejahtera, and the subject was the Cost of Goods Manufactured Report for the year 2019. The results showed that the implementation of ABC resulted in lower cost calculations for Plate Joint Spun Pile 400 mm and 500 mm products, which were Rp. 133,266 and Rp. 160,290, respectively. The profitability level of the company also increased to 8% for both products. The implication of this study is that the implementation of ABC can reduce cost distortion and increase profitability in companies.
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Factors Affecting the Implementation of Activity-based Costing Systems in Businesses

Purpose: The article analyzes the impact of factors affecting the application of an activity-based cost accounting system in Vietnamese food and beverage enterprises. Theoretical framework: This paper uses the activity-based costing system. Design/Methodology/Approach: The research method uses a questionnaire survey of accountants, chief accountants, business managers of Vietnamese food and beverage enterprises. After the survey results are available, data processing is performed by statistical methods to determine the weight and frequency of the selected factors, and the data is processed on SPSS statistics 25 software to estimate the impact of the selected factors affecting the application of the operation-based cost accounting system in Vietnamese food and beverage enterprises. Findings: Research results show that Relative advantage, Enterprise size, Role of cost information, Employee training, Information technology quality, Manager's support have a positive impact on system application. cost accounting system based on activity in Vietnamese food and beverage enterprises, in which the support of managers is the influencing factor with the largest regression coefficient. Research, practical & social implications: Based on the research results, the author has proposed recommendations to minimize the negative impact of these pressures in order to limit the occurrence of violations of professional ethics of Vietnamese auditors. Originality/Value: Based on the research results, the author has proposed recommendations to improve the application of the activity-based cost accounting system in Vietnamese food and beverage enterprises.

Impact of Activity Based Costing System on Financial Performance of SMEs: A Case of Lester Trading Private Limited

Purpose: The purpose of the study was to assess the impact of activity based costing system on financial performance of SMEs. It was observed that high escalating operating costs is a serious cause of concern in most SMEs in Zimbabwe. In order to establish the impact of activity based costing system on financial performance of SMEs, the study would like at the benefits of using activity based costing system, the effects of activity based costing system on cost control, the problems faced with use of activity based costing system and the cost drivers of activity based costing system. Methodology: A descriptive design research methodology was adopted to gather data through use of questionnaires from a population of 15 employees. Data analysis was undertaken by use of SPSS to determine correlations and tables, pie charts and graphs facilitated data presentation. Findings: From the findings, activity based costing system had negative effects on the cost control reduction concluding that there was an insignificant relationship. Originality value: training of employees is important to equip them with the necessary knowledge and skills and applying an effective ABC system.

Application of Using the Activity-Based Costing System on Product Development in Jordan’s Manufacturing Listed Manufacturing Firms

Purpose: The aim of this research was to examine how the Activity-Based Costing system (ABC) affected product development in Jordanian manufacturing public shareholding companies. Design/methodology/approach: According to the monthly statistical bulletin of the Amman Stock Exchange and the Securities Depository Center, the study population for the year 2022 included (56) Jordanian industrial firms. The questionnaire was distributed to the financial manager, production manager, sales manager, and accountant. In comparison to the total number of circulated questionnaires, (132) were authorized for statistical analysis. Regression analysis and correlation were used to analyze the data and extract results related to the statistical methods used in the study, namely, descriptive statistics, Cronbach's alpha equation, Pearson's correlation coefficient, and linear regression analysis. Findings: The study revealed that there is a connection between the ABC system and product development in Jordanian industrial companies, where this approach contributes to the improvement and development of products by tracking the stages of production since its inception and concentrating on activities that add value to the company and eliminating activities that do not add any value, naturally improving the competitive position of the company. Research Practical implications: Hence, one of this study's main findings suggests developing strategies for methodically and practically gathering comprehensive data on the company's operations. The study advised that Jordan's industrial public shareholding companies stay up with recent advancements in the field of activity-based costing. Originality/value: This study recommends that for the company to stay up with the acceleration in advancement in the areas of activity costs and the employment of latent capabilities for the company's advantage, the study also recommended that the company train its employees to develop their capabilities to serve its strategies. As the findings also reveal that most of the manufacturing firms in Jordan have the infrastructure to adopt and implement the ABC system.

Increasing the efficiency of delivery operations and customer profitability analysis with a time-driven activity-based costing model

Learning outcomes Upon completion of the case study discussion, successful students will be able to define and list the steps of time-driven activity-based costing system (TDABC); understand and explain the ideas behind the TDABC; implement the TDABC in customer profitability analysis; draw connections among the cost and profitability analysis; evaluate the importance of better costing techniques in profitability analysis; and make managerial decisions based on TDABC analysis. Case overview/synopsis Gluten Limited’s financial affairs and operations manager, Fatih, was aware that the company was making very little profit from its operations with its biggest customer. The main reason appeared to be that it delivered its products in bulk to the main warehouses of the customer, which then distributed them to the stores. Fatih believed that products were being sent to stores late, so that their expiration dates passed quickly and they ended up being returned. The case study documents the past year of Gluten Limited’s delivery operations with one of its biggest customers. It focuses on the effectiveness of its delivery operations and ways to increase profitability by reducing sales returns. The case dilemma involves the choices that Fatih faced following a six-month trial period: either delivering products in bulk to the customer’s main warehouses at lower cost but higher return rates or delivering small amounts directly to stores at higher cost but lower return rates. Fatih needed to decide which mode of customer operations was more profitable and continue that way. Knowing the importance of determining costs properly in profitability analysis, Fatih made the cost calculations using the TDABC system. Complexity academic level This case was written for use in Cost Accounting and Managerial Accounting classes at the undergraduate level. The focus of the case aligns well with discussions of customer profitability analysis, cost reductions, eliminating non-value-added activities, and profitability of operations. Instructors seeking to emphasize the most suitable costing methods for customer profitability analysis could assign this case. Supplementary material Teaching notes are available for educators only. Subject code CSS 7: Management Science

Managing Costs for Efficiency in Production

Purpose: This study aims to provide cost information for the benefit of costs as a measure of the efficiency of a business. Planning tool, meaning that business planning is definitely related to income and costs. Cost control, meaning comparing the costs that should have been incurred to produce one unit of product with the actual costs incurred. Cost is an important factor in ensuring a company's victory in competition in the market. Consumers will choose producers who are able to produce high quality products and services at low prices. Contemporary Cost Management Systems emphasize tracking over allocation. And activity-based management is at the heart of contemporary operations control systems.
 Design/methodology/approach: This study used a descriptive research method. Data is the document obtained financial statement for the period of 2022. As for the subjects in this study are companies engaged in manufacturing, by calculating the cost based on the financial statements in 2022. 
 Findings: Based on the results of research, it can be concluded that recording costs in the company's internal or known as cost accounting is useful to assist company management in preparing plans or making decisions related to finance. There are at least two main factors that must be considered in choosing a cost driver, namely: measurement costs and the degree of correlation between the cost driver and actual overhead consumption. Cost drivers are divided into two categories, namely structural cost drivers and executional cost drivers. The cost driver is the basis used to charge the costs accumulated in the cost pool to products. So that by calculating costs through a Time Driven activity-based costing system, companies obtain more precise and accurate information.
 Research limitations/implications: The limitation in this study is that calculating cost can only be done for one entity.
 Practical implications: The results of this study can be used as a comparison in this cost has a function to measure production costs with the cost of production results. Activity based accounting will make it easier for accountants to understand the costs and benefits derived from the products the company produces.
 Originality/value: The focus of the research is to find ways to calculate the effectiveness of human resources, means of production, as well as the raw materials for the products to be used. This type of cost accounting also calculates the average direct cost required by the company during its production process.
 Paper type: Research paper.

The Impact of Activity-Based Costing Systems on Cost Reduction During Pandemic. An Example of an Industrial Company Listed on the Amman Stock Exchange

Objective: The purpose of this study is to examine the impact of an activity-based costing system on cost reduction during the COVID-19 pandemic. An example of ASE. Theoretical framework: a 42-item work-related cost scale and a 10-item cost reduction scale were applied to a random sample of 261 workers working in ASE. Design/methodology/approach: The results show a positive impact and correlation between an activity-based costing system and cost reductions during the COVID-19 pandemic. Results and recommendations: The study recommends enhancing the professional qualifications of financial managers, heads of accounting departments and accountants in Jordanian industrial companies by attending various professional courses.

PENGARUH PENERAPAN ACTIVITY BASED COSTING (ABC) TERHADAP MANAJEMEN BIAYA PRODUKSI, PRODUKTIVITAS PERUSAHAAN, DAN EFISIENSI PERUSAHAAN

<p align="justify">This study aims to analyze the influence of the implementation of activity-based costing (ABC) on the management of production costs, productivity and efficiency of the company. The research method used is qualitative with case studies in several manufacturing companies that have implemented the ABC system. Data collection is done through in-depth interviews with production managers, analysis of financial statements and direct observation of the production process. This study was conducted for 6 months, from January to June. The results show that the implementation of ABC has a significant impact on the company's production cost management. With ABC, companies can more accurately determine the cost of production for each activity involved, helping to make resource allocation decisions and control costs more accurately. Furthermore, the adoption of ABC is also associated with increasing the company's productivity. With a better understanding of production costs, companies can optimize production processes and improve overall operational efficiency. However, this study has some limitations, including limited case study and focus on qualitative data. The implication of this study is the importance of how companies view the implementation of ABC as a tool to improve cost management, productivity and operational efficiency in order to gain a competitive advantage. </p><p> </p><p><strong>Keywords</strong>: Activity Based Costing, Production Cost Management, Company Productivity, Company Efficiency </p>

Analisis Harga Pokok Penjualan Pada Pabrik Tahu Hidayah Di Kota Bengkulu

The purpose of this study was to analyze the cost of goods sold arising from the calculation of the cost of goods manufactured by the traditional system used by Hidayah tofu factory and the basis for calculating the cost of goods manufactured by the Activity Based Costing system that the researcher implemented.The type of research used in this research is quantitative descriptive research. Where the data was obtained from interviews with Hidayah tofu owners and then implemented using the traditional methods used by the factory and the Activity Based Costing method to determine the cost of good sold from the two methods.The results of the analysis using the traditional method of cost of good sold for fried tofu products is Rp. 283,300,000.00, which is lower than the Activity Based Costing method. Meanwhile, the cost of good sold for white tofu products is IDR 138,000,000.00, which is lower than the Activity Based Costing method. Whereas in the Activity Based Costing method the cost of good sold for fried tofu products is IDR 285,837,500.00 higher than the traditional method. Meanwhile, the cost of good sold for white tofu products is IDR 140,536,760.00 higher than the traditional method. This shows that calculations using the Activity Based Costing method are more accurate than traditional methods. Because in the Activity Based Costing method all costs incurred in production activities are included in the calculation component, namely the cost of depreciation of factory machine assets.

Comparison of Hotel Room Costs and Activity Based Costing System Using Hotel Sarlime Calculation

This study aims to compare the cost of hotel rooms and the Activity Based Costing system using the Hotel Sarlim calculation. The type of data in this study is descriptive and quantitative. Data collection methods used to obtain data in this study are interviews and documentation. The analytical method used in this study is a descriptive analysis method that shows and compares the method of calculating the Cost of Hotel rooms which has been applied so far by using the Activity Based Costing System. There is a difference between the cost of the room determined by the Sarlim hotel management and the implementation of the Activity Based Costing System. The calculation of hotel room prices using the ABC method is carried out in 2 stages. The first stage of costs is traced to activities that incur costs and the second stage is to charge activity costs to products; the calculation of hotel room rental prices can be applied because the analysis uses the ABC System method according to the activities consumed in each room type..