Literature Study : Activity-Based Costing System

Larashati B'tari Setyaning, Andriani Okta Fara Dita


Increasing competition forces companies to be competitive. Competitiveness can be achieved by conveying product value to consumers at low prices. To achieve this, a good cost approach is needed, one of which is the Activity-Based Costing System (ABC). In this literature study the authors divide ABC into 3 parts, namely the concept of ABC, the stages in ABC and the costs and benefits of implementing ABC. ABC is a cost approach method by calculating the cost of activities to produce products, both goods and services where these activities require resources. After conducting a literature study, the authors found similarities and inequalities among several literatures and then draw conclusions. The conclusion that can be drawn is that the ABC system is used by companies to get more accurate production costs, accurate production costs can increase company profits and the criteria for companies that are suitable for using the ABC system are companies with a high level of product diversity, there is intense competition with companies that produce similar products, as well as the cost of implementing the ABC system is low.

Full Text:



Blocher. Edward J., Stout. David E., Cokins. Gary. 2010. Cost Management: A Strategic

Emphasis, Fifth Edition. New York: McGraw-Hill.

Hilton. Ronald W., Maher. Michael W., Selto. Frank H. 2006. Cost Management Strategies for

Business Decision. New York: McGraw-Hill.

Drury. Colin. Management and Cost Accounting, Tenth Edition. 2018. United Kingdom:


Hansen. Dor R., Mowen. Maryanne M. 2006. Cost Management Accounting and Control, Fifth

Edition. USA: Thomson South-Western.



  • There are currently no refbacks.

Copyright (c) 2020 Larashati B'tari Setyaning

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Mailing Address: Journal of Applied Sciences, Management and Engineering Technology - ITATS Institut Teknologi Adhi Tama Surabaya Jl. Arief Rahman Hakim No.100, Surabaya 60117 email: [email protected] Website :