ANALISIS PENERAPAN METODE ACTIVITY BASED COSTING DALAM PENENTUAN HARGA POKOK PRODUKSI (Studi Kasus Pada UD. Defense Company Kabupaten Sragen)

Abstract

This study aims to compare the application of the cost of production between the traditional methods used in the Defense Company and the Activity Based Costing (ABC) method. This research was made to provide better and more accurate cost information so that management can run the company efficiently and better understand its strengths, weaknesses, and competitive advantages. Given the importance of the company in determining the right cost of production to achieve an efficient selling price, it is also one of the strong reasons for making this research. This research uses descriptive qualitative research. With the method of collecting interview data, observation and documentation. Interviews were conducted with the production manager. The data used by researchers in the form of primary and secondary data. The results of this study indicate that there are differences between the traditional method and the ABC method. This is because the calculation used by the company has a lower level of accuracy compared to the ABC method in determining the cost of production. This is evidenced by the occurrence of Overcosting on t-shirt products and Undercosting on jacket products. Therefore, researchers expect to use the ABC method in determining the calculation of the cost of goods manufactured.