Abstract:
This study aims to examine the application of activity-based costing as an effort to increase company profitability. This study uses a qualitative descriptive method with an interpretive paradigm, and a case study approach, using primary data obtained through interviews, documentation studies, and observations at PT. Ocean Wakatamba Award. The elements that make up the cost of goods and service costs use the Activity Based Costing method and then compare with the service rates used by companies using traditional methods. The results showed that there was undercoating in setting service rates for the type of Ocean Freight 20 feet dry and Ocean Freight 20 feet refer by 35.56% and 9.45% during the June-December 2021 period. The findings of this study related to the implementation of less-based costing activities effectively increasing the profitability of the company at PT. Anugrah Ocean Wakatamba. Based costing can identify the costs incurred to determine the company's service costs PT. Anugrah Ocean Wakatamba. Based on the theory, activity-based costing method can increase profitability, but the research results show that activity-based costing can detect losses. This is due to activity-based costing which recognizes any costs incurred for cost drivers, in traditional calculations it may not be counted. Novelty - The use of Activity Based Costing increases profitability at PT. Anugrah Ocean Wakatamba does not have a significant effect, for further research using alternative methods, such as Economic Value Added (EVA) and Market Value Added (MVA).
