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Application of Activity Based Costing for Palm Oil Plantation

Malaysia is one of the largest producers and exporters of palm oil in the world, accounting for 11% of the world's oils & fats production and 27% of the export trade of oils & fats. Oil palm tree will start bearing fruits after 30 months of field planting and will continue to be product...

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Main Authors: Chak, Wen Zheng, Abu, Mohd Yazid
Format: Article
Language:English
Published: Penerbit UMP 2019
Subjects:
TS Manufactures
Online Access:http://umpir.ump.edu.my/id/eprint/24637/1/Application%20of%20ABC%20for%20Palm%20Oil%20Plantation-RDU170387.pdf
http://umpir.ump.edu.my/id/eprint/24637/
http://journal.ump.edu.my/jmmst/article/view/1796
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spelling my.ump.umpir.246372019-11-21T06:49:58Z http://umpir.ump.edu.my/id/eprint/24637/ Application of Activity Based Costing for Palm Oil Plantation Chak, Wen Zheng Abu, Mohd Yazid TS Manufactures Malaysia is one of the largest producers and exporters of palm oil in the world, accounting for 11% of the world's oils & fats production and 27% of the export trade of oils & fats. Oil palm tree will start bearing fruits after 30 months of field planting and will continue to be productive for the next 20 to 30 years. Thus, a proper costing method is very important in order to have a clear picture about its profit loss and gain for the next 20 to 30 years. Subsequently, Traditional Cost Accounting (TCA) which the manufacturing overhead are driven by the production volume are being applied. The inaccurate cost estimation will lead the management hard to do decisions making. The aim of this work is to apply the Activity Based Costing (ABC) as a method of cost estimation for the palm oil plantation. The ABC has been applied to analyse the costing of every activities involved in the palm oil plantation. Under the support of actual cost information and proper cost drivers, accurate profitability will able to be calculated. Accurate profitability is the most important factor for the management to identify on the money that process in order to maintain rapid but sustainable growth. Therefore, ABC system will provide actual cost information and proper cost drivers for each of the activities being involved. Thus, it makes the company’s profitability more accurate. Penerbit UMP 2019 Article PeerReviewed pdf en http://umpir.ump.edu.my/id/eprint/24637/1/Application%20of%20ABC%20for%20Palm%20Oil%20Plantation-RDU170387.pdf Chak, Wen Zheng and Abu, Mohd Yazid (2019) Application of Activity Based Costing for Palm Oil Plantation. Journal of Modern Manufacturing Systems and Technology (JMMST), 2 (1). pp. 1-14. ISSN 2636-9575 http://journal.ump.edu.my/jmmst/article/view/1796
institution Universiti Malaysia Pahang
building UMP Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Malaysia Pahang
content_source UMP Institutional Repository
url_provider http://umpir.ump.edu.my/
language English
topic TS Manufactures
spellingShingle TS Manufactures
Chak, Wen Zheng
Abu, Mohd Yazid
Application of Activity Based Costing for Palm Oil Plantation
description Malaysia is one of the largest producers and exporters of palm oil in the world, accounting for 11% of the world's oils & fats production and 27% of the export trade of oils & fats. Oil palm tree will start bearing fruits after 30 months of field planting and will continue to be productive for the next 20 to 30 years. Thus, a proper costing method is very important in order to have a clear picture about its profit loss and gain for the next 20 to 30 years. Subsequently, Traditional Cost Accounting (TCA) which the manufacturing overhead are driven by the production volume are being applied. The inaccurate cost estimation will lead the management hard to do decisions making. The aim of this work is to apply the Activity Based Costing (ABC) as a method of cost estimation for the palm oil plantation. The ABC has been applied to analyse the costing of every activities involved in the palm oil plantation. Under the support of actual cost information and proper cost drivers, accurate profitability will able to be calculated. Accurate profitability is the most important factor for the management to identify on the money that process in order to maintain rapid but sustainable growth. Therefore, ABC system will provide actual cost information and proper cost drivers for each of the activities being involved. Thus, it makes the company’s profitability more accurate.
format Article
author Chak, Wen Zheng
Abu, Mohd Yazid
author_facet Chak, Wen Zheng
Abu, Mohd Yazid
author_sort Chak, Wen Zheng
title Application of Activity Based Costing for Palm Oil Plantation
title_short Application of Activity Based Costing for Palm Oil Plantation
title_full Application of Activity Based Costing for Palm Oil Plantation
title_fullStr Application of Activity Based Costing for Palm Oil Plantation
title_full_unstemmed Application of Activity Based Costing for Palm Oil Plantation
title_sort application of activity based costing for palm oil plantation
publisher Penerbit UMP
publishDate 2019
url http://umpir.ump.edu.my/id/eprint/24637/1/Application%20of%20ABC%20for%20Palm%20Oil%20Plantation-RDU170387.pdf
http://umpir.ump.edu.my/id/eprint/24637/
http://journal.ump.edu.my/jmmst/article/view/1796
_version_ 1651866910505041920
score 13.211869

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