ESTIMATED COST OF PRODUCT DEVELOPMENT METHOD BASED ACTIVITY-BASED COSTING AND ECONOMIC VALUE ADDED PRODUCTS TO DIE BLANKING AND BENDING

• Main Author: (NIM: 23408057); Pembimbing : Dr. Ir. Anas Ma’ruf, ILHAMULLAH
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/16009
• Institution: Institut Teknologi Bandung

Determination of cost of products is one of the important strategic management activity in a profit-oriented organization. As a consequence, the management of an organization must be able to calculate the cost of the product in the right way. Miscalculated the cost of the product will certainly lead to errors in decision-making managerial decisions relating to products, and potentially cause harm to the organization. <br /> <br /> <br /> Product costing methods that are currently widely applied is Activity Based Costing. ABC focuses on activities undertaken to produce a product or service. In addition, the Activity-Based Costing also provides information resources needed to carry out these activities. However, the ABC method still has the weakness that is not taking into account capital costs incurred by the company. Integration method of Activity Based Costing and Economic Value Added, developed by Roztocki (1999) has included the cost of capital. But in the allocation of capital costs to the activities and products using Activity Dependence Capital that still rely on intuition policymakers. <br /> <br /> <br /> The results of this study indicate that the ABC and EVA method developed in this study can eliminate the dependence on intuitive decision-makers in the allocation of capital costs.