Activity-based Costing System Research Articles

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..

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.

The Realities and Expectations of Calculating Government Service Costs: An Analysis of Jordanian Hospitals

The goal of this study is to look at how government service expenses are calculated and analysed in Jordanian hospitals to direct health spending in the hospitals of the ministry of health of Jordan for 2021. ABC systems encourage hospitals to use, improve, and evolve in order to save government spending. The theoretical analysis's most significant conclusions were that the process of computing service costs was wrong and did not rely on the cost accounting system of activities or others. Furthermore, the calculation technique has resulted in a significant disparity in the cost of calculating each service from one hospital to the next, proving the inadequacies of the calculation approach. The study indicates that the Health Activity-Based Costing System (ABC) be activated to monitor expenditures, especially medical and healthcare disposables, in order to decrease waste costs; that pay-outs on the system be linked to high involvement files; and that an inventory is conducted at the close of every year to guarantee that the stock fits actual spending.

Analisis Penggunaan Activity Based Costing (ABC) dalam Menentukan Tarif Jasa Rawat Inap

The hospital is one of the health services engaged in services. Hospitals in determining the cost of goods sometimes still use the traditional method. Where the preparation of this traditional cost of cost information presented still has a weakness that is distorted. The purpose of this study was to determine the rate of inpatient services using Activty Based Costing at the RS AL dr. Azhar Zahir Manokwari and find out the comparison of inpatient service rates that have RS AL dr. Azhar Zahir Manokwari uses it with Activity Based Costing. The analytical method used is descriptive qualitative method. Data collection techniques are interviews and documentation. The results showed that the calculation using Activity Based Costing gave different results. The results of calculations using the Activity Based Costing system compared to the rates determined by the hospital give more expensive results in all classes, namely VIP Class, Class 1, Class 2 and Class 3. The differences that occur between the traditional method and the Activity Based Costing method are caused by the imposition of overhead costs on each of these products.

Application of the Activity Based Costing Calculation Method in Determining the Cost of Production PT. Sakura Makmur Wijaya in the city of Surabaya

The research carried out by this researcher was a qualitative descriptive study by obtaining data through documentation, literature study, observation and interviews. This research aims to compare whether determining the cost of production using the Activity-Based Costing method is more appropriate than using the traditional method at PT. Sakura Makmur Wijaya. Researchers took samples of products produced by the company, namely gondola shelves, bookshelves and warehouse shelves in 2016. Calculating the cost of production using traditional methods which are currently still carried out by the company, the results for gondola shelves were IDR. 10,329,489,695.58, bookshelf Rp. 3,448,701,959.66, and warehouse shelves amounting to Rp. 1,290,430,635.75. Meanwhile, using the Activity Based Costing method, the results obtained for Gondola Shelves were IDR 10,322,044,996.50, for Bookshelves IDR 3,444,432,305.13, and for Warehouse Shelves IDR. 1,302,144,989.37. The results of the research show that calculating the cost of goods manufactured using the Activity Based Costing System when compared with the traditional system calculation gives lower results for Gondola Shelf and Bookcase products, except for Warehouse Shelves. Differences occur due to overhead rates being charged for each product. In the traditional system, the costs for each product are only charged to one cost driver, namely the product units produced. Meanwhile, in the Activity-Based Costing System method, factory overhead costs for each product are charged to many cost drivers, so that the Activity Based Costing System is able to track the costs incurred by product types precisely based on the consumption of each activity required and can be used as an alternative by company in allocating its costs.

Identification and Assessment of Factors Affecting the Implementation of Beyond Activity-Based Costing System (BABCS) in Public Organizations of Kurdistan Region

Objective: The purpose of this study is to identify and assess the factors influencing the implementation of the Beyond Activity-Based Costing System (BABCS) in public organizations of the Kurdistan region. Methodology: This research is applied in aim and mixed (qualitative-quantitative) in nature, utilizing interviews and researcher-made questionnaires. The statistical population includes managers, experts, and scholars in the field of the study. Findings: According to the perspectives of the statistical population, for the implementation of the BABCS system in the public organizations of the Kurdistan region, seven categories of factors are influential, including organizational-behavioral, technical, economic, design and execution, legal, external, and policy factors. The assessment of these factors in the current situation revealed that only the "legal factors" are relatively adequate, thus indicating that the conditions for implementing BABCS in public organizations of the Kurdistan region are not optimal. Additionally, regarding the potential for implementing BABCS in these organizations, all dimensions showed a positive status, with organizational-behavioral factors having a higher potential to aid the implementation of BABCS. Overall, the potential for employing BABCS in the public organizations of the Kurdistan region is currently in a relatively good state (scored 3.13 out of 5), and by overcoming barriers, this potential could be utilized. Conclusion: The BABCS method, which is critically needed in the public organizations of the Kurdistan region, can be implemented; as Kurdistan, with its recent advancements in various fields and the trend towards the development of public and semi-public organizations, urgently requires efficient and modern methods in the financial, managerial, and organizational arenas to achieve fruitful outcomes.

Activity-based Costing of Common Caries Treatments Among Paediatric Patients

Background: Activity-based costing (ABC) is a micro-costing method. Despite being an accurate tool for cost calculation, ABC system is rarely applied in the dental fraternity as it is complex to be conducted. Data gathered through ABC is beneficial in bridging the gap between policy makers who emphasise on cost saving and the practitioners who emphasise on quality of treatment. Aim: To conduct an ABC of common treatments for caries management among paediatric patients at Hospital Canselor Tuanku Muhriz (HCTM), Malaysia. Methods: ABC was conducted through a clinical pathway to lay out the routine activities of dental caries management among paediatric patients, and to gather information about the equipment, instruments and consumables used, personnel involved, and the time spent for each procedure. Then, these resources were assigned into different categories namely equipment more than RM 500.00, instruments less than RM 500.00, consumables and staff salary. Finally, cost drivers were determined by calculating the amount of resources used and the time spent. Results: Based on the clinical pathway conducted, there were 10 common treatments for caries management for paediatric patients. The common treatments involved were fissure sealant, glass ionomer cement (GIC) restoration for primary teeth, composite resin (CR) restoration for primary teeth, CR restoration for permanent teeth, strip crown restoration, stainless steel crown (SSC) restoration, pulpotomy, pulpectomy, extraction and scaling. The price range of treatment ranged from RM 60.00 to RM 450.00. Pulpotomy had the highest cost, whereas extraction of teeth had the lowest cost. Conclusion: Study on costing is important to reduce the gap between the demand in dental treatment and the limited resources available to perform the treatment. ABC is deemed to be appropriate to be used in this study as dental treatments are largely procedure-based and this costing method produces a a more precise and transparent data. The outcome of this data provides a tool for other hospitals to be used as a standardised approach for treating these patients and subsequently improve the quality of dental care given.

The Integration of the Theory of Constraints and the Time-Driven Activity-Based Costing System for the Improvement of Production Processes in an SME

In this study, the Time-Driven Activity-Based Costing System (TDABC) is discussed with the Theory of Constraints (TOC). The integration of TDABC and TOC has enabled the determination of the bottleneck activities by the examination of the entire production capacity. For this purpose, a case study was carried out in a manufacturing company. In line with the aim of the case study, the capacity usage based on the TDABC system and capacity constraints were determined within the framework of the TOC. As a result of this study, the following findings were obtained: The activities in the production process of the company were divided into 10 resource centers. Capacity constraints were determined in two of them and it was determined that the order received in the period subject to the study could not meet the production. It was also understood that the degree of products' utilization of operating activities changed due to the differences in the production processes and that the product with a more complex production process required more capacity utilization. This creates a resource constraint for some activities. Then the solutions based on the five-stage improvement of the theory of constraints were proposed to reduce the identified capacity constraints. The solutions were proposed considering the short and long term. The decision of the product mix that would provide the highest profitability in the short term was made by linear programming and products to be discontinued were decided. Overwork or recruitment of additional staff was proposed to increase the capacity in the long run. The results of the study support the managerial decisions in terms of capacity management, product mix decisions, and improvement of production processes by using the time equations of TDABC. Based on the results of this study, businesses that manufacture products that go through different production processes can benefit from the determination of the utilization degree of the products, the idle and bottleneck capacity, and solutions for their improvement. En este estudio se analiza el sistema de cálculo de costes por actividades en función del tiempo (TDABC) con la teoría de las restricciones (TOC). La integración de TDABC y TOC ha permitido determinar las actividades de cuello de botella mediante el examen de toda la capacidad de producción. Para ello, se llevó a cabo un estudio de caso en una empresa manufacturera. De acuerdo con el objetivo del estudio de caso, se determinó la utilización de la capacidad basada en el sistema TDABC y las limitaciones de capacidad en el marco de la COT. Como resultado de este estudio, se obtuvieron las siguientes conclusiones: Las actividades del proceso de producción de la empresa se dividieron en 10 centros de recursos. Se determinaron las limitaciones de capacidad en dos de ellos y se designó que el pedido recibido en el periodo objeto del estudio no podía satisfacer la producción. También se entendió que el grado de utilización de los productos de las actividades operativas cambiaba debido a las diferencias en los procesos de producción y que el producto con un proceso de producción más complejo requería una mayor utilización de la capacidad. Esto crea una limitación de recursos para algunas actividades. A continuación, se propusieron las soluciones basadas en la mejora de cinco etapas de la teoría de las restricciones para reducir las limitaciones de capacidad identificadas. Las soluciones se propusieron considerando el corto y el largo plazo. La decisión de la combinación de productos que proporcionara la mayor rentabilidad a corto plazo se determinó mediante programación lineal y se decidieron los productos que debían dejarse de fabricar. Se propuso el exceso de trabajo o la contratación de personal adicional para aumentar la capacidad a largo plazo. Los resultados del estudio apoyan las decisiones de la dirección en cuanto a la gestión de la capacidad, la combinación de productos y la mejora de los procesos de producción mediante el uso de las ecuaciones temporales de TDABC. A partir de los resultados de este estudio, las empresas que fabrican productos que pasan por diferentes procesos de producción pueden beneficiarse de la determinación del grado de utilización de los productos, la capacidad ociosa y el cuello de botella, y las soluciones para su mejora.

Production Cost Analysis at PTPN VII Gunung Dempo Packaging Station using Activity-Based Costing Method

Production costs consist of components that are directly attached to the product, including direct and indirect costs. In determining production costs such as packaging costs, the usage of the traditional model is not always suitable shown by the possibility of overstated or understated conditions. This study aims to propose the implementation of the Activity-based Costing (ABC) System in calculating the cost of tea packaging and finding the differences with the traditional costing. The data used were based on the case of PTPN VII Gunung Dempo, South Sumatra, Indonesia. The results using the ABC system show that the total cost per unit for BOPF tea products is IDR 34,444.45, for Dust products is IDR 35,629.77, and for Dust II products is IDR 35,629.77. While the traditional system calculation shows that the total cost per unit for BOPF tea products is IDR 61,982.60, for Dust tea products is IDR 61,982.60, and for Dust II tea products is IDR 61,982.60. The strategy that can be applied to avoid possible losses in determining packaging costs due to incorrect cost calculations using the traditional system model is to implement Activity-based Costing.

A Critical Review on Activity-Based Costing Technique: Analysis of Abundant Countries

Activity-based costing has been identified as an effective costing system that helps the companies in manufacturing and service industry to reduce their cost. Due to the high reliability and accuracy of activity-based costing, without a doubt, activity-based costing had been used and implemented widely by companies in the manufacturing and service industry to replace traditional costing. This is because traditional costing has been considered by many researchers that it is no more reliable and effective to act as a costing system in this constantly changing market conditions, developing technology, and a large number of productions. Furthermore, the activity-based costing system as mentioned just now can provide a lot of benefits to the company which implements it such as providing detailed cost information which can show a clear picture to the management on the costing of their products, which leads to a better decision making as well as improvise the strategic planning of the companies to achieve better profitability and sustainability of the business in the long run.

Activity-based Costing Accounting System and Government Services Efficiency

The objective of this research is to investigate the Activity-based Costing accounting system and Jordan's efficiency of government services. ABC systems were also influenced to improve and evolve in order to increase the efficiency of government services. The study's sample consists of 182 questionnaires completed by Jordanian government employees. The study revealed that the Activity-based Costing accounting system has a significant impact on the efficiency of Jordan's government services. Furthermore, the study revealed an Activity-based Costing accounting system for all levels as a way to improve government service efficiency and crucial to accomplishing efficiency both in the short and long run, as well as the need to just have accounting systems that abide by international financial reporting standards, which seem to be critical inside any accounting part.

The Impact of the Activity-Based Costing on SMEs’ Financial Performance in Lusaka, Zambia (II)

While several studies have been conducted regarding the impact of Activity-based costing (ABC) system on the financial performance of a firm, to a larger extent they were focused on large enterprises who are mainly established in developed economies. There have been very few studies focused on small and medium sized enterprises and specifically those in the developing/emerging economies. This project therefore sought to explore the impact of Activity-based costing on the financial performance of small and medium sized enterprises based in Lusaka, Zambia, being a developing economy. The specific objectives of the study were to investigate the relationship between Activity-based costing and financial performance in SMEs based in Lusaka, the impact of the implementation of ABC in SMEs on cost control and cost reduction, and the reasons why the majority of SMEs have not adopted the use of the ABC system. An analysis of the responses from 20 participants in the survey revealed that only seven respondents (35%) had implemented the ABC system, while the other 13 (65%) were still using a traditional costing system. The study further revealed that all the SMEs who had adopted the ABC system had reported a positive impact on their financial performance, as well as on cost control and cost reduction. Furthermore, the study showed that there were three major reasons that the respondents indicated for not adopting the system, namely being satisfied with the traditional costing system (53.85% of the respondents), the high cost of implementing the ABC system (30.77% of the respondents), and lack of expertise to implement the ABC system (15.38% of the respondents). The contribution of this study to the body of knowledge is that the findings will contribute to the understanding of the impact that the adoption and implementation of the ABC system has on the financial performance of SMEs particularly those based in Lusaka, this being the first study on this topic. In addition, the findings of the study will contribute to the understanding of the reasons for low implementation of the ABC system among SMEs in Lusaka.

The Impact of the Activity-Based Costing on SMEs’ Financial Performance in Lusaka, Zambia (I)

While several studies have been conducted regarding the impact of Activity-based costing (ABC) system on the financial performance of a firm, to a larger extent they were focused on large enterprises who are mainly established in developed economies. There have been very few studies focused on small and medium sized enterprises and specifically those in the developing/emerging economies. This project therefore sought to explore the impact of Activity-based costing on the financial performance of small and medium sized enterprises based in Lusaka, Zambia, being a developing economy. The specific objectives of the study were to investigate the relationship between Activity-based costing and financial performance in SMEs based in Lusaka, the impact of the implementation of ABC in SMEs on cost control and cost reduction, and the reasons why the majority of SMEs have not adopted the use of the ABC system. An analysis of the responses from 20 participants in the survey revealed that only seven respondents (35%) had implemented the ABC system, while the other 13 (65%) were still using a traditional costing system. The study further revealed that all the SMEs who had adopted the ABC system had reported a positive impact on their financial performance, as well as on cost control and cost reduction. Furthermore, the study showed that there were three major reasons that the respondents indicated for not adopting the system, namely being satisfied with the traditional costing system (53.85% of the respondents), the high cost of implementing the ABC system (30.77% of the respondents), and lack of expertise to implement the ABC system (15.38% of the respondents). The contribution of this study to the body of knowledge is that the findings will contribute to the understanding of the impact that the adoption and implementation of the ABC system has on the financial performance of SMEs particularly those based in Lusaka, this being the first study on this topic. In addition, the findings of the study will contribute to the understanding of the reasons for low implementation of the ABC system among SMEs in Lusaka.

TIME DRIVEN ACTIVITY BASED COSTING SYSTEM IMPLEMENTATION IN THE INTERNAL AUDIT DEPARTMENT OF A BANK

Organizations using traditional cost systems are having difficulties in fulfilling today’s business requirements in competitive markets. An efficient and effective cost system should be in place for the satisfaction of needs of competitive environment in which technology, digitalization and efficiency are the key drivers. In the literature, allocation of indirect costs and also calculation of unused capacity of the resources are the hot topics of the cost and performance evaluation research. An effective costing system known as Time-Driven Activity Based Costing system (TDABC) can be used for the measurement of product or service costs with accurate and reliable data considering unit costs of resources allocated to activities and the time length required for execution of these activities and the determination of unused capacity. This system properly elaborates the cause and effect relations between resources and their costs identifying the activities/ sub-activities.This article presents a case study which shows all the stages of TDABC in the internal audit department of a bank by analyzing the operations of the department and defining all the activities that consume the resources. The goal of this paper is to design a cost accumulation system to calculate the cost of audits of the internal audit department of a bank by implementing TDABC system.

Comparative Analysis of Activity-Based Costing and Traditional Methods in Determining Basic Room Rates in Didu's Homestay Banyuwangi

Determining competitive price is one of the ways to win in a market. The rate can be concluded by accurately calculating fixed and variable costs incurred in a business. However, regarding determining room costs, many homestay businesses do not apply proper calculation techniques. Their price often does not reflect specific activities, as many cost categories are indirect and fixed. This study compares the basic rate for homestay room business using traditional, and activity-based costing (ABC) approaches. Activity-based costing can allocate activity costs appropriately based on the consumption of each activity. This study collected data through observation and interviews at a homestay, additionally commanded a descriptive analysis. The data source was obtained from internal data, namely, financial data obtained from the homestay. There were three stages of data analysis, i.e. (1) calculation of the cost of renting the room using the traditional method; (2) calculation of the cost of rent for rooms using the ABC system; (3) comparison study between the calculation of the cost of rent for the room currently used by the homestay with calculations using the traditional method and the ABC System.

Application of Management Accounting in Company Sustainability

This report illustrates how management accounting can be used in helping an organization reach sustainability by applying four main tools in management accounting to a dairy company. These tools are LifeCycle Analysis, Identification of Relevant Costs, Activity-Based Costing (ABC) System and Balancing Score Card, all of which can help qualify and consequently quantify the various costs (including environmental costs) incurred during the operation of a company. Besides that, the above tools can also be utilised in a company’s decision-making processes by the man-agement team. Thus, it is suggested that companies integrate these tools into their reporting system. This report illustrates the definition of a sustainable organization in the beginning, followed by detailed descriptions of the four management accounting tools, together with their applications to a diary company. The report ends with a summary on which type of role each tool plays in the re-porting system.

Application of Activity Based Costing System in Indonesia: A Bibliographic Study

Aims: This study aims to analyze and map the development of research on the application of activity-based costing from several accredited journals in Indonesia from various aspects.
 Study Design: The method used in this research is the charting the field and analyzing the community methods.
 Place and Duration of Study: Samples were taken from 6 accredited journals in Indonesia, and 20 articles were obtained during the 2013-2019 period.
 Methodology: This study selects several research results regarding the application of activity-based costing or the like, which are published in nationally accredited journals. In this approach, the researcher selected several research results regarding applying the activity-based costing system published in 6 journals, then grouped them based on the topic and research method.
 Conclusion: Based on the research topic, the majority of researchers in Indonesia examine the application of the activity based costing system in determining cost of goods. Research methods that researchers in Indonesia widely use to examine the application of activity-based costing systems are qualitative and quantitative, so further research can use methods that are still rarely used to examine the implementation of activity-based costing systems. The analytical method that is often used is the descriptive method. This method used as many as 11 articles from the 20 articles analyzed. The data collection method in the 20 article research carried out various interviews, observations, documentation, data collection, library research, theory studies, and literature studies.

Does Pricing Strategy Increase the Competitive Advantage of Companies Implementing an ABC System?

Abstract. This study aims to investigate the extent to which pricing strategy creates an effective competitive advantage for companies implementing an activity-based costing (ABC) system in their production activities. The research data were obtained through a questionnaire-based survey of several manufacturing companies in Indonesia that implement ABC systems. This research used the Structural Equation Model with Partial Least Square statistical method. The results of this research indicate that those companies who apply an ABC system are capable of making their pricing strategy more effective and increasing their competitive advantage. The empirical results show that price competition is unavoidable among manufacturing industries. However, implementing an ABC system can increase manufacturing companies' competitive advantage. Thus, the implementation of an ABC System employs pricing strategy as a determinant factor of competitive advantage. This research supports the results of previous studies that also concluded that there is a strong relationship between ABC systems and competitive advantage. In addition, this research found that pricing strategy can improve competitive advantage with implementation of an ABC System. Keywords: Activity-based costing system; competitive advantage; pricing strategy