Study on Implementation of Activity Based Costing (ABC) System on Determination of Indirect Costs in Ship Production

*Sufian Imam Wahidi  -  Department of Naval Architecture, Institut Teknologi Sepuluh Nopember, Indonesia
Vialdo Muhammad Virmansyah  -  Department of Naval Architecture, Institut Teknologi Sepuluh Nopember, Indonesia
Triwilaswandio Wuruk Pribadi  -  Department of Naval Architecture, Institut Teknologi Sepuluh Nopember, Indonesia
Received: 21 Sep 2020; Revised: 11 Nov 2020; Accepted: 13 Nov 2020; Published: 28 Feb 2021; Available online: 13 Nov 2020.
Open Access License URL: http://creativecommons.org/licenses/by-sa/4.0

Citation Format:
Abstract
Currently, the development of the business especially in the maritime sector has quite rapid progress in Indonesia. Recently, the development of the shipbuilding industry is an effort to improve the competitiveness with the global market. With the increasing development of the shipbuilding industry in Indonesia, cost accounting as a cost information system is challenged to develop the shipbuilding industry which requires high product quality. This requires the company to make a decision related to proper budget planning so that the company does not experience losses. Activity-Based Costing (ABC) System is a system to determine costs using activities as a classification of costs to produce indirect costs that are more systematic and relevant. Activity-based costing systems identify resources in the activities of each department so as to provide information about the cost of a product. it collects indirect costs and allocates them to various products in proportion to the product volume. Therefore, activity-based costing is able to provide an estimate of the product costs and individual activity costs used in the production well The first step taken is classifying activities, associating various costs with various activities, determining homogeneous cost groups, and determining group rates. The second step of this stage is the determination of overhead prices determined from each cost group. Based on the results of calculations that have been made, it can be seen by comparing the calculation of indirect costs on the construction of 2x1800 HP tugboat ships according to traditional cost accounting methods with the Activity Based Costing System, the result is an indirect cost for the construction of the first 2x1800 HP tugboat is IDR 3,432,920,043 and indirect cost for the construction of the second 2x1800 HP tugboat is IDR of 2,231,760,472.
Keywords: Activity Based Costing (ABC); Indirect Costs; Ship Production; Tugboat

Article Metrics:

  1. Kementrian Perindustrian, “Siaran Pers,” 10 Februari 2020. [Online]. Available: https://kemenperin.go.id/artikel/21504/Industri-Galangan-Kapal-Perlu-Dukungan-Pembiayaan. [Diakses 27 Juni 2020]
  2. C. T. D. S. M. d. F. G. Horngren, Akuntansi, Jakarta: Erlangga, 2008
  3. B. Bustami dan Nurlela, Akuntansi Biaya, Yogyakarta: Graha Ilmu, 2010
  4. Mulyadi, Akuntansi Biaya. Edisi Lima, Yogyakarta: Unit Penerbit dan Percetakan Sekolah Tinggi Ilmu Manajemen YKPN, 2015
  5. Supriyono, Akuntansi Biaya dan Akuntansi Manajemen untuk Teknologi, Yogyakarta: BPFE, 1994
  6. B. Sasongko dan I. Baroroh, Analisa Biaya Industri Perkapalan, Surabaya: Hang Tuah University Press, 2011
  7. C. BOGDĂNOIU, “ACTIVITY BASED COST FROM THE PERSPECTIVE OF COMPETITIVE ADVANTAGE,” Journal of Applied Economic Sciences, vol. IV, no. 1(7), 2009
  8. K. Sonthipermpoon, N. Amdee, T. Arunchai dan P. Warawut, “Optimal Cost Drivers in Activity Based Costing,” Journal of Industrial Engineering and Engineering Management (IEEM), 2014
  9. A. Baykasog˘lu dan V. Kaplanog˘lu;, “Application of activity-based costing to a land transportation company: A case study,” International Journal Production Economics, pp. 920-924, 2008
  10. O. Duran dan P. S. L. P. Afonso, “An activity based costing decision model for life cycle economic assessment in spare parts logistic management,” International Journal of Production Economics, 2020
  11. B. Popesko, “ACTIVITY-BASED COSTING APPLICATION METHODOLOGY FOR MANUFACTURING INDUSTRIES,” E a M: Ekonomie a Management, 2010
  12. D. Chao dan a. et, “Cost accounting method of logistics dynamic alliance based on activity-based costing,” 2010 International Conference on Computer Application and System Modeling (ICCASM 2010), pp. pp. V2-269-V2-272, 2010
  13. D. Askarany dan et al., “Supply chain management, activity-based costing and organisational factors,” International Journal of Production Economics, vol. 127, pp. 238-248, 2010
  14. S. P. Dewi, B. S. Kristanto dan E. S. Dermawan, Akuntansi Biaya Edisi 2, Bogor : IN MEDIA , 2015
  15. V. W. Sujarweni, Akutans Manajemen, Yogyakarta: Pustaka Baru Press, 2015
  16. S. Hao dan S. Ding, “Design of Activity-based Costing Model Based on the Reciprocal Cost Sharing,” 2008 International Workshop on Modelling, Simulation and Optimization, pp. 229-232, 2008
  17. S. Hao dan P.-y. Guo, “The researched on water project cost accounting based on activity-based costing,” 2012 International Conference on Information Management, Innovation Management and Industrial Engineering, pp. 146-149, 2012
  18. K. Sun dan G. Yang, “A Design for Standard Activity-Based Cost Management Model,” 2010 International Conference on Management and Service Science, pp. 1-4, 2010
  19. J. ParkTimothy dan W. Simpson, “Toward an activity-based costing system for product families and product platforms in the early stages of development,” International Journal of Production Research , vol. 46 (1), pp. 99-130, 2008
  20. B. Y.-J. Lin dan e. a. Te-Hsin Chao, “How can activity-based costing methodology be performed as a powerful tool to calculate costs and secure appropriate patient care?,” Journal of Medical Systems, vol. 31(2), pp. 85-90, 2007
  21. P. Cao, S.-I. Toyabe dan e. al., “A Modified Method of Activity-based Costing for Objectively Reducing Cost Drivers in Hospitals,” Methods of Information in Medicine, vol. 45(4), pp. 462-9, 2006
  22. R. C. Kee dan C. M. Matherly, “Integrating the Cost of Secondary Support Activities into an Activity-Based Costing System,” The Journal of Cost Analysis & Management, vol. 5(1), 2003
  23. S. Gujral, K. Dongre dan et al., “Activity-based costing methodology as tool for costing in hematopathology laboratory,” Indian Journal of Pathology and Microbiology , vol. 53(1), pp. 68-74, 2010
  24. R. Kee, “Integrating Activity-Based Costing With the Theory of Constraints To Enhance Production-Related Decision-Making,” Accounting Horizons, vol. 9 (4), pp. 48-61, 1995
  25. SPAR ASOCIATES, “Shipyard Cost Model Using Activity Based Costing Methods,” Journal of National Shipbuilding Research Program, p. 105, 1996
  26. G. S. Rotikan, “Penerapan Metode Activity Based Costing dalam Penentuan Harga Pokok Produksi Pada PT. Tropica Cocoprima,” Journal of Management Economics and Accounting Business, p. 11, 2013
  27. The Society of Naval Architects and Marine Engineers, “Product Oriented Design and Construction Cost Model,” Paper Presented at the 1997 Ship Production Symposium, p. 17, 1997

Last update: 2021-02-23 10:53:47

No citation recorded.

Last update: 2021-02-23 10:53:47

No citation recorded.