The Development of Costing Management by Activity Base Cost Analysis of a Peanut Processing Community Enterprise Group, Bann Phan, Roi Et Province

Abstract

This research aims to analyze the activity-base cost of a peanut processing community enterprise group in Bann Phan Dongsing sub-district, Roi Et province, and to develop a cost reduction approach. A participatory action research process was used. The population were members of a peanut processing community enterprise group of 28 people. Data was collected by participatory behavior observation, semi-structured in-depth interviews, and activity-base cost data recording. The results of the research were as follows: The peanut processing community enterprise group had a simple management structure. It was divided into two main work segments: the management department and the production department. Costsaredivided into production costs and other overhead costs. Calculate the average cost by the old method was 12.73 bath per unit. Calculation of the average cost by activity-base cost analysis was 11.43 bath per unit, 10.21 percent decrease. The approaches to reducing costs were estimated sales volume for raw material procurement planning to reduce the purchasing cycle ; collecting orders and shipping them in bigger lots to reduce the shipping cycle ; and machine depreciation based on actual hours of use.

Keywords

• costing management
• activity-basecosting
• peanut processing community enterprise