skip to main content

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

*Sufian Imam Wahidi  -  Department of Naval Architecture, Faculty of Marine Technology, Institut Teknologi Sepuluh Nopember, Indonesia
Vialdo Muhammad Virmansyah  -  Department of Naval Architecture, Faculty of Marine Technology, Institut Teknologi Sepuluh Nopember, Indonesia
Triwilaswandio Wuruk Pribadi  -  Department of Naval Architecture, Faculty of Marine Technology, Institut Teknologi Sepuluh Nopember, Indonesia
Open Access Copyright (c) 2021 Kapal: Jurnal Ilmu Pengetahuan dan Teknologi Kelautan under http://creativecommons.org/licenses/by-sa/4.0.

Citation Format:
Cover Image
Abstract
Currently, business development, especially in the maritime sector, has quite rapid progress in Indonesia. Recently, the shipbuilding industry's development is an effort to improve 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, requiring high product quality. This matter requires the company to decide on proper budget planning not to experience losses. Activity-Based Costing (ABC) System is a system to determine costs using activities to classify costs to produce indirect costs that are more systematic and relevant. Activity-based costing systems identify resources in each department's activities to provide information about a product's cost. It collects indirect costs and allocates them to various products in proportion to the product volume. Therefore, activity-based costing can estimate the product costs and individual activity costs used in the production well. The first step 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 selected from each cost group. This research compares indirect costs to the construction of 2x1800 HP tugboat ships according to traditional cost accounting methods with the Activity-Based Costing System method. The first method's result is 3,432,920,043 IDR and the second method is 2,231,760,472 IDR.
Fulltext View|Download
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. Horngren, S. M. Datar, G. Foster, “Akuntansi Biaya: Penekanan Manajerial,” Jakarta: Erlangga, 2008
  3. B. Bustami and D. Nurlela, “Akuntansi biaya,” Jakarta: Mitra Wacana Media, 2009
  4. Mulyadi, “Akuntansi Biaya. Edisi Lima,” Yogyakarta: Unit Penerbit dan Percetakan Sekolah Tinggi Ilmu Manajemen YKPN, 2015
  5. R. A. Supriyono, “Akuntansi Biaya dan Akuntansi Manajemen untuk Teknologi Maju dan Globalisasi,” Yogyakarta: BPFE, 2002
  6. B. Sasongko and 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. 4, no. 1(7), 2009
  8. K. Sonthipermpoon, N. Amdee, T. Arunchai, P. Warawut, “Optimal Cost Drivers in Activity Based Costing,” Journal of Industrial Engineering and Engineering Management (IEEM), 2014. doi: 10.1109/IEEM.2014.7058732
  9. A. Baykasog˘lu, V. Kaplanog˘lu;, “Application of activity-based costing to a land transportation company: A case study,” International Journal of Production Economics, vol. 116, no. 2, pp. 308-324, 2008. doi: 10.1016/j.ijpe.2008.08.049
  10. O. Duran and 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, vol. 222, p. 107499, 2020. doi: 10.1016/j.ijpe.2019.09.020
  11. B. Popesko, “Activity-Based Costing Application Methodology for Manufacturing Industries,” E+M: Ekonomie a Management, vol. 2010, no. 1, 2010
  12. D. Chao, H. Kaihu, and W. Tongtao, “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, H. Yazdifar, and S. Askary, “Supply chain management, activity-based costing and organisational factors,” International journal of production economics, vol. 127, no. 2, pp. 238–248, 2010. doi: 10.1016/j.ijpe.2009.08.004
  14. S. P. Dewi, B. S. Kristanto, E. S. Dermawan, “Akuntansi Biaya Edisi 2”, Bogor: IN MEDIA, 2015
  15. V. W. Sujarweni, “Akutansi Manajemen,” Yogyakarta: Pustaka Baru Press, 2015
  16. S. Hao and R. Ding, “Design of activity-based costing model based on the reciprocal cost sharing,” in 2008 International Workshop on Modelling, Simulation and Optimization, 2008, pp. 229–232. doi: 10.1109/WMSO.2008.78
  17. S. Hao and P. Guo, “The researched on water project cost accounting based on activity-based costing,” in 2012 International Conference on Information Management, Innovation Management and Industrial Engineering, 2012, vol. 1, pp. 146–149. doi: 10.1109/ICIII.2012.6339753
  18. K. Sun and G. Yang, “A design for standard activity-based cost management model,” in 2010 International Conference on Management and Service Science, 2010, pp. 1–4. doi: 10.1109/ICMSS.2010.5577945
  19. J. Park and T. 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, no. 1, pp. 99–130, 2008. doi: 10.1080/00207540600825240
  20. B. Y.-J. Lin et al., “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, no. 2, pp. 85–90, 2007. doi: 10.1007/s10916-005-9010-z
  21. P. Cao, S. Toyabe, S. Kurashima, M. Okada, and K. Akazawa, “A modified method of activity-based costing for objectively reducing cost drivers in hospitals,” Methods of information in medicine, vol. 45, no. 04, pp. 462–469, 2006. doi: 10.1055/s-0038-1634085
  22. R. C. Kee and C. M. Matherly, “Integrating the cost of secondary support activities into an activity-based costing system,” The Journal of Cost Analysis & Management, vol. 5, no. 1, pp. 21–42, 2003. doi: 10.1080/15411656.2003.10462241
  23. S. Gujral et al., “Activity-based costing methodology as tool for costing in hematopathology laboratory,” Indian Journal of Pathology and Microbiology, vol. 53, no. 1, p. 68, 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. S. 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,” Jurnal EMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis dan Akuntansi, vol. 1, no. 3, 2013. doi: 10.35794/emba.v1i3.2307
  27. K. J. Ennis, J. J. Dougherty, T. Lamb, C. R. Greenwell, and R. Zimmermann, “Product-oriented design and construction cost model,” Journal of ship production, vol. 14, no. 1, pp. 41–58, 1998

Last update:

  1. Comprehensive Analysis of IoT with Artificial Intelligence to Predictive Maintenance Optimization for Indian Shipbuilding

    PNV Srinivasa Rao, PVY Jayasree. International Journal of Electrical and Electronics Research, 11 (3), 2023. doi: 10.37391/ijeer.110325
  2. Virtual Reality Based Application for Safety Training at Shipyards

    S I Wahidi, T W Pribadi, W S Rajasa, M S Arif. IOP Conference Series: Earth and Environmental Science, 972 (1), 2022. doi: 10.1088/1755-1315/972/1/012025
  3. Application of the transdisciplinary shipyard energy management framework by employing a fuzzy multiple attribute group decision making technique toward a sustainable shipyard: case study for a Bangladeshi shipyard

    Seyedvahid Vakili, Alessandro Schönborn, Aykut I. Ölçer. Journal of Shipping and Trade, 7 (1), 2022. doi: 10.1186/s41072-022-00123-8
  4. Simulation of a Ship’s Block Panel Assembly Process: Optimizing Production Processes and Costs through Welding Robots

    Sufian Imam Wahidi, Selda Oterkus, Erkan Oterkus. Journal of Marine Science and Engineering, 11 (8), 2023. doi: 10.3390/jmse11081506

Last update: 2024-07-13 03:44:02

No citation recorded.