Determination of the Ideal Cost of Goods Manufatured Method in Sustainable Palm Oil Production Company

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Ardita Sofyani
Muhammad Ilham Adelino

Abstract

Determination of the cost method is very important in establishing COGM. In several studies, the use of the ABC method of costing is considered better than the traditional method for several industries or companies. The purpose of this study was to compare the COGM cost calculation between the traditional method and the ABC method at a sustainable palm oil production company. The method proposed is the ABC method. Currently the company only calculates COGM costs using traditional methods. The results of the study obtained are the COGM calculation using the traditional method is around Rp. 48,605 and using the ABC method is around Rp. 46,025. These results state that the calculation of COGM costs using the ABC method is considered better and is recommended for consideration by the company

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