SIMULASI IMPLEMENTASI SISTEM ACTIVITY BASED COSTING (ABC) DENGAN CONTINGENCY GRID MODEL PADA PT RIC

Abstract

The determination of product unit cost using FBC system is perceived to not fulfill the function of accurate costing information provider due to cost distortion. Inaccuracy of overhead cost allocation cause the cost distortion to exist. To response the weakness of FBC system, ABC system is established as the answer and ensured to be able to increase calculation accuracy of product cost. To avoid the failure of ABC system implementation, the company is demanded to observe the condition of its appropriateness and the need of company to implement the system. Contingency Grid model exists as analysis tool before ABC system implementation with analyzing ten factors of company’s appropriateness condition namely product diversity, support diversity, common process, period cost allocation, rate of growth of period costs, pricing freedom, period expense ratio, strategic considerations, cost reduction effort, and analysis of frequency. This study is aimed to inspect the possibility of Activity Based Costing system implementation in PT RIC. Case study is the type of research design in this study by utilizing Contingency Grid Model as analysis tool to observe the company’s appropriateness condition in implementing Activity Based Costing (ABC) system. From the result of Contingency Grid Model analysis, it is positioned in Quadrant IV in which ABC system is not yet appropriate though cost distortion occurs however management tends to not use cost information yet in decision making process. Cost distortion is strengthened from the result of costing calculation with using ABC system. It is a warning for the company in competition if such condition occurs. PT RIC supposedly starts to consider this costing information usage and implements ABC system as unit cost calculation system to enable quick alteration in order to sustain their products in the market.