IMPLEMENTATION OF ACTIVITY BASED MANAGEMENT (ABM) TO INCREASE PRODUCTION COST EFFICIENCY AT THE AGUAN KABANJAHE TOUGH FIELD

Abstract

This research aims to determine the application of Activity Based Management in increasing production cost efficiency at the Kilang Tahu Aguan Kabanjahe. The population in this research is the Production Cost Report which was established in 1998 until now. The sample used in this research is the 2022 Production Cost Report. The data analysis technique used is descriptive analysis, the data collection technique in this research is interview and documentation techniques obtained from the Kilang Tahu Aguan Kabanjahe. Based on the results of this research, it shows that there are still non-value added activities for the company which include moving tofu to the warehouse and inspecting damaged tofu. These non-value added activities will of course cause non-value added costs, by implementing activity based Company management can save costs of up to 4.8%. Therefore, companies need to apply activity based management methods to eliminate non-value added activities so that production cost efficiency can be achieved