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/ http://umpir.ump.edu.my/id/eprint/24637/ http://umpir.ump.edu.my/id/eprint/24637/1/Application%20of%20ABC%20for%20Palm%20Oil%20Plantation-RDU170387.pdf

id	ump-24637
recordtype	eprints
spelling	ump-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
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Malaysia Pahang
building	UMP Institutional Repository
collection	Online Access
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/ http://umpir.ump.edu.my/id/eprint/24637/ http://umpir.ump.edu.my/id/eprint/24637/1/Application%20of%20ABC%20for%20Palm%20Oil%20Plantation-RDU170387.pdf
first_indexed	2023-09-18T22:37:24Z
last_indexed	2023-09-18T22:37:24Z
_version_	1777416687416508416

Application of Activity Based Costing for Palm Oil Plantation

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