PERAN ACTIVITY BASED COSTING SYSTEM DALAM PENCIPTAAN KEUNGGULAN BlAYA PADA PT. BINTANG TlMUR RAYA INDAH TANGERANG

One of strategies to be implemented by PT. Bintang Timur Raya lndah is to reset the production cost in order to get the more accurate /rational production cost level, so the company will attain the cost leadership. One of methods to attain the cost leadership is by applying the Activity Based Costing Method. The aims of this study are: 1) To identify the difference between the conventional calculation of the production floor prim and the calculation using the Activity Based Costing methods for supporting the decision-making, 2) To find out the influence of information resulted from the conventional cost calculation system toward the decision making, and 3) To find out the superiority of Activity Based Costing System and its effects on the decision-making process at PT. Bintang Timur Raya lndah Tangerang. The result of analysis shows that of the four product lines (Laminating Solid, Laminating Finger joint, Profile and Side Four Side), only one product, i,e. Laminating Solid, which will get profit, while the other three products still show losses. The Company, however, still produces the three losing products considering that the market demand is still quite high in 2002. This condition is also added by a commitment in the marketing aspect where the company provides satisfying services for the consumers. The products will be maintained since the raw materials used are obtained from the main product. Based on calculation result, the company should analyze the setting of the selling price in the market in order not to gain losses. In aggregate, the products produced by PT. BTRl provide significant contributions and have a positive value. Thus the management decides to create the cost leadership using the Activity Based Costing method in order to be able to calculate the product floor price