Production Cost Control using Activity-Based Costing Methods in Information Systems

Production Cost Control using Activity-Based Costing Methods in Information Systems

Control, Cost, Production, Activity-Based Costing, ABC

Companies engaged in furniture manufacturing with marketing targets mostly abroad are faced with very tight price and quality competition that requires a more accurate production costing system thantraditional methods,which are still widely used in Indonesia. In general, companies use cost calculation methods that pay attention to only one cost driver, resulting in deviations in the calculation of actual production costs. Aproduction cost calculation method is proposed using activity-based costingto overcome this problem. Many companieshave used this methodin developed countries,showingimprovements incalculatingproduction costs. The activity-based calculation method takes into account the activities that are cost drivers and is taken into account in obtaining actual production costs. So that the cost planning for the management isbetter,in this study, calculations using traditional methods are shown,and the results are compared with the results of the activity-based costing (ABC) method. Then an analysis of the systemneeded for applyingthe information system-based ABC methodandthe proposed implementation is also carried out. The information system will help calculate costs faster and more accurately

Suparto Darudiato1, Yunus Widjaja

https://ijicom.respati.ac.id/index.php/ijicom/article/view/54/41

Deember 2022

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