Utilization of Activity Based Costing Method to Calculate the Cost of Production and Evaluate Profit
(Case Study at PT. Ionuda Sidoarjo)
Abstract
This research was conducted at a manufacturing company, PT. Ionuda. The purpose of this study is to apply the method of calculating costs based on the calculation of the cost of production and how the calculation of cost of production of profits obtained by the company. This research uses a qualitative approach with a case study method. The results of this research show that first, the use of the Activity-Based Costing method in calculating the cost of production imposes overhead costs based on the activity needs of each product resulting in a more accurate and informative cost of production. Second, calculation of the cost of production with the Activity-Based Cost Calculation method does not change the profit obtained by the company, only the profit contribution of each product becomes different.
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