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ANALYSIS OF JOB ORDER COST DETERMINATION USING THE ACTIVITY BASED COSTING METHOD AT PT XYZ
Accurate job order costing is essential for companies operating under a make to order system due to differences in activity consumption across orders. PT XYZ applies a traditional costing method that allocates overhead costs uniformly, which may lead to cost distortions. This study employs a descriptive quantitative case study approach. Data were collected through observation, interviews, and documentation, and analyzed by identifying activities, determining Cost Drivers, calculating activity rates, and comparing job order costs and profits between the traditional method and the Activity Based Costing (ABC) method. The results show that temporary warehouse storage is the most dominant activity in absorbing overhead costs. The total overhead cost per order using the ABC method ranges from Rp 4,455,008 to Rp 8,170,247. The total job order cost based on the ABC method amounts to Rp 1,320,033,237, which is lower than the traditional method amounting to Rp 1,325,400,000. This difference leads to higher profitability, with total profit under the ABC method reaching Rp 1,010,644,865, compared to Rp 1,005,278,102 under the traditional method. These findings indicate that the Activity Based Costing (ABC) method provides more accurate job order cost and profit information and is more appropriate for pricing and profitability evaluation in make to order companies
Fakultas Teknik Universitas Sultan Ageng Tirtayasa
TEKNIK INDUSTRI, Fakultas Teknik Universitas Sultan Ageng Tirtayasa
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