Application of Activity-Based Costing In Electronic Manufacturing
An accurate product costing is very crucial in the production environment. The traditional cost accounting (TCA) has been reported to have limitations such as inaccurate cost allocation. This study explores the benefits of Activity-based Costing (ABC) in electronics manufacturing. Furthermore, it is...
| Main Authors: | , , , , |
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| Format: | Conference or Workshop Item |
| Language: | English English |
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2019
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| Online Access: | http://umpir.ump.edu.my/id/eprint/28226/ http://umpir.ump.edu.my/id/eprint/28226/1/4th_ICET_2019_paper_74.pdf http://umpir.ump.edu.my/id/eprint/28226/7/Application%20of%20Activity-Based%20Costing%20In%20Electronic%20Manufacturing1.pdf |
| _version_ | 1848822998647177216 |
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| author | Nurul Farahin, Zamrud Mohd Yazid, Abu Nik Nurharyantie, Nik Mohd Kamil Filzah Lina, Mohd Safeiee Oktaviandri, Muchamad |
| author_facet | Nurul Farahin, Zamrud Mohd Yazid, Abu Nik Nurharyantie, Nik Mohd Kamil Filzah Lina, Mohd Safeiee Oktaviandri, Muchamad |
| author_sort | Nurul Farahin, Zamrud |
| building | UMP Institutional Repository |
| collection | Online Access |
| description | An accurate product costing is very crucial in the production environment. The traditional cost accounting (TCA) has been reported to have limitations such as inaccurate cost allocation. This study explores the benefits of Activity-based Costing (ABC) in electronics manufacturing. Furthermore, it is to appraise the strength of cost driver in ABC in order to propose a better costing structure. To overcome the limitations of TCA, we applied ABC method to the costing structure of an electronic and electrical company. This costing method is applied at inductor production line. The data collected include labor cost, maintenance cost, material cost and consumable cost. All costing data are based on 2018 information. The product unit calculated by ABC is MYR 0.72 that is lower than TCA which is MYR 1.07 which is by 32.71% difference. Thus, ABC determined the actual cost of the product to be compared to current costing method that is TCA. In conclusion, ABC provides more accurate costing information to the company than current method that is TCA. |
| first_indexed | 2025-11-15T02:50:09Z |
| format | Conference or Workshop Item |
| id | ump-28226 |
| institution | Universiti Malaysia Pahang |
| institution_category | Local University |
| language | English English |
| last_indexed | 2025-11-15T02:50:09Z |
| publishDate | 2019 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | ump-282262020-04-15T13:36:25Z http://umpir.ump.edu.my/id/eprint/28226/ Application of Activity-Based Costing In Electronic Manufacturing Nurul Farahin, Zamrud Mohd Yazid, Abu Nik Nurharyantie, Nik Mohd Kamil Filzah Lina, Mohd Safeiee Oktaviandri, Muchamad TS Manufactures An accurate product costing is very crucial in the production environment. The traditional cost accounting (TCA) has been reported to have limitations such as inaccurate cost allocation. This study explores the benefits of Activity-based Costing (ABC) in electronics manufacturing. Furthermore, it is to appraise the strength of cost driver in ABC in order to propose a better costing structure. To overcome the limitations of TCA, we applied ABC method to the costing structure of an electronic and electrical company. This costing method is applied at inductor production line. The data collected include labor cost, maintenance cost, material cost and consumable cost. All costing data are based on 2018 information. The product unit calculated by ABC is MYR 0.72 that is lower than TCA which is MYR 1.07 which is by 32.71% difference. Thus, ABC determined the actual cost of the product to be compared to current costing method that is TCA. In conclusion, ABC provides more accurate costing information to the company than current method that is TCA. 2019 Conference or Workshop Item PeerReviewed pdf en http://umpir.ump.edu.my/id/eprint/28226/1/4th_ICET_2019_paper_74.pdf pdf en http://umpir.ump.edu.my/id/eprint/28226/7/Application%20of%20Activity-Based%20Costing%20In%20Electronic%20Manufacturing1.pdf Nurul Farahin, Zamrud and Mohd Yazid, Abu and Nik Nurharyantie, Nik Mohd Kamil and Filzah Lina, Mohd Safeiee and Oktaviandri, Muchamad (2019) Application of Activity-Based Costing In Electronic Manufacturing. In: 4th International Conference on Engineering Technology (ICET 2019) , 6-7 July 2019 , DITC Kemaman, Terengganu, Malaysia. pp. 1-6.. (In Press / Online First) (In Press / Online First) |
| spellingShingle | TS Manufactures Nurul Farahin, Zamrud Mohd Yazid, Abu Nik Nurharyantie, Nik Mohd Kamil Filzah Lina, Mohd Safeiee Oktaviandri, Muchamad Application of Activity-Based Costing In Electronic Manufacturing |
| title | Application of Activity-Based Costing In Electronic Manufacturing |
| title_full | Application of Activity-Based Costing In Electronic Manufacturing |
| title_fullStr | Application of Activity-Based Costing In Electronic Manufacturing |
| title_full_unstemmed | Application of Activity-Based Costing In Electronic Manufacturing |
| title_short | Application of Activity-Based Costing In Electronic Manufacturing |
| title_sort | application of activity-based costing in electronic manufacturing |
| topic | TS Manufactures |
| url | http://umpir.ump.edu.my/id/eprint/28226/ http://umpir.ump.edu.my/id/eprint/28226/1/4th_ICET_2019_paper_74.pdf http://umpir.ump.edu.my/id/eprint/28226/7/Application%20of%20Activity-Based%20Costing%20In%20Electronic%20Manufacturing1.pdf |