| PT. Semen BosowaMaros (SBM) is a company that engages in cement production with process orders system in its production activities. PT. SBM calculates the cost of production using the traditional cost system in which a charge is based on the number of products. The calculation of the cost of production is very critical in the company’s survival. Inappropriate imposition of the cost component can lead to even a loss to the company. Imposing traditional system is considered unsuitable for companies with various types of materialsor products where the loading errors may occur. Therefore, this study has been carried upon the calculation of the cost of production using Activity- Based Costing method, wherein this method, the each cost load and component are tied into each activity. Processing Activity-Based Costing method itself consists of two stages, first stage is a charge to the activity event where cost drivers are defined, then the second stage is loading every cost of material or product used corresponding to relevant activity that consumes it. With the calculation method of Activity-Based Costing, it is expected that the most accurate the cost of production calculation will be achieved. Calculation of cost of goods manufactured using traditional method obtained the cost of production of Rp 270,601.55 for Ordinary Portland Cement (OPC) and Rp 158,947.55 for Portland Composite Cement (PCC), whereas the calculation using the Activity-Based Costing concluded a production cost of Rp 271,250.70 for OPC and Rp 139,937.178 for PCC. Results have shown someimprovement need to be proposed to the current calculation of the cost of production at PT. SBM. Activity-Based Costing method can also do unique cost analysis, which presents the degree of the each activity’s cost relative to others. Costs can be effectively managed so that existing resources within the company can be used as efficiently as possible. In this particular study, based on the analysis,it has been found thatthe activity that has the greatest cost is the transportation of raw materials to the dump truck into the hopper; and the grinding/demolition process of materials. This condition is caused by the big amount of time required and the small amount of output that resulted. The production processes need some specific improvements as shown in this study and work efficiency needs some specific training related to the specific activity shown in this study, so that workers get to perform as efficiently as possible. |