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Activity-Based Costing in the
Public Sector
Kelompok :Ria Purnama Sari
Mauliasyah
Indra Jaya
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Introduction
more than 60% of all citizen transactions aredone through Prefecture
Reality in the public administration :
absence of strategic action,
wastefulness of management of public resources,
corruptness
absence of rational designing of places of study.
ddddd
Are services too expensive and usually of lowquality ?
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Activity-based costing (ABC)
Definition:
Activity-Based Costing is a costing method based on all
activities and functions that participate in a company.
This method allows cost-accountants to assign alloverhead cost (those that cannot be apportioned directly
to the products) to the activities that take place in an
organization and then these activities with the help of
activity-drivers are assigned to the products-services
produced.
The result is to have full information about the cost of
products made.
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Literature
Review
Literature
ReviewManufacture Service Public Services
Pada literatur-literatur yang tertera pada jurnal ini, dapat dikatakan bahwa
ABC pada awalnya memang digunakan oleh perusahaan manufaktur. Namun
seiring berjalannya waktu, ABC juga digunakan oleh perusahaan jasa (Logistik,
RS, dan Bank) dan kini praktek ABC juga diterapkan di sektor publik.
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ABC Steps and Advantages
Steps
Recognition of cost objects(the reason of cost analysis)
Defining the activities thataffect each cost object
Determining the sources ofexpenses that affect eachactivity
Assigning the activities to the
cost objects Transfer the activity cost to the
cost objects and argue on thefinal results
Advantages The expenses are analyzed with greater
detail than the traditional methods wherethe expenses are only categorized as directand indirect.
While traditional cost methods group theGeneral Expenses (GE) (Overhead Cost) inthe general cost-centers such as those ofProduction, Administration, Disposal,Services and Research and then, distributethem to the products; Activity-Based Costingcategories them according to the activitiesthat consume them.
Activity-Based Costing analyses all theactivities, providing information to theadministration of those activities thatcontribute less, or, cost more than theyshould, letting the managers abolish some ofthem.
Detailed Activity and cost analysis present agreat help for creating better budgets
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PREFECTURE PROFIL
13 DIVISI
DIVISI YANG DITELITI ADALAH
DIVISION OF ECONOMIC SERVICE
4 DEPARTEMEN
DATA YANG DIGUNAKAN :
GAJI PEGAWAI TAHUN 2007
BELANJA TIAP DIVISI DAN
DEPARTEMENINVENTARISASI ASET TETAP
Grevena prefecture
Fokus Analisis :
SUMBER DAYA PREFEKTUR
DAN BIAYA-BIAYANYA
DEPARTEMEN DANAKTIVITAS
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DIVISION OF ECONOMIC SERVICES PROFIL
Mission
THE REASSURANCE OF THE NECESSARYRESOURCES AND REVENUE FOR THE PREFECTURE
THE RECORD
THE DEVELOPMENT AND THE PROTECTION OF THE
ASSETS OF THE PREFECTURE
THE PAYMENT OF THE CHEQUES
THE CREATION OF THE NEXT YEARS BUDGET THE CREATION OF THE STATEMENT OF ACCOUNTS
AND BALANCE SHEET
Departements
BUDGET DEPARTEMENT
REVENUE AND PAYMENT
DEPARTMENT
ASSETS AND PROCUREMENTDEPARTEMENT
EXPENSES AUDIT DEPARTEMENT
SECRETARIAL DEPARTEMENT
ANALYSIS OF DIVISION
RESEARCH
ANALYSIS
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RESOURCES ANALYSISTable 1 : Annual statement of account of 2007 for division of economic services
1 Employees Salaries 149,471.28 3,636,509.77
2 Telecomunication expenses 2,700.00 38,400.00
3 Water supply irrigation expenses 50.00 1,420.00
4 Lighting expenses 3,100.00 63,046.00
5 Cleanness expenses 2,500.00 126,900.00
6 Expenses for supply of stasionary 1,700.00 22,091.00
7 1,200.00 5,467.00
8 Expenses for supply of detergents 320.00 17,330.00
9 Expenses for heating 4,500.00 93,350.0010 Expenses for operational supply 700.00 18,580.00
11 Expenses for supply of personal
heating devises
240.00 4,415.00
12 Depreciation of fixed assets 5,550.35 0.00
Total 172,031.63 4,027,508.77
Categories Account Division Total () Prefecture Total ()
Expenses for supply of books,
peridocals & newspaper
DIRECT COST
MISCELLANEOUS
COST
INDIRECT
COST
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IMPLEMENTATION OF ABC
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Table 2 : Employee No.1 of the revenue & payment departement
Cash a cheque (payment) 1,300 25 17,369.76 714.52 1,959.68
Revenues collection accounting 208 4 2,779.16 114.32 313.55
Record of all transactions 104 2 1,389.58 57.16 156.77
Total 1,612 31 21,538.50 886.00 2,430.00
Table 3 : Employee No.2 of the revenue & payment departement
Cash a cheque (payment) 1,040 20 23,873.50 775.50 2,430.00
Total 1,040 20 23,873.50 775.50 2,430.00
Activity
ActivityHourly occopationer ear
Hourly occopationer week
Employeesalar
Depreciationcost
Miscellanouscost
Hourly occopation
er ear
Hourly occopation
er week
Employee
salar
Depreciation
cost
Miscellanous
cost
back
Working time gap
Working time gap
Cost driver
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back
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back
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Table 4 : Total annual cost per costumer
Budget 2 49,074.63 16.60
Revenue & Payment 2 51,933.50 17.57
Assets & Procurement 1 22,645.25 7.66
Expenses Audit 1 25,286.85 8.55
Secretarial 1 23,091.00 7.81
Total 172,031.23 58.19
DepartmentNo. of
employees
Total cost per
department ()
Cost per costumer
per deparment ()
RESULT OF ABC METHOD
Cost per constumer for
revenue and payment
departement
Cost per constumer for
Division of Economic Services
back
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The i r se w s t resent the sicrinci les nd r cedures f nd texamine whether the implementati n f thismethod is possi le toa ublic Sector
rganization
Show great detail, along with capabilities toprovide information regarding the costestimation, so that canbeeasily usedby theadministration for identifying thebottleneck
Theuseof this method can resolveall thedeficiencies of ublic Sector, soas citizens andcompanies will bebetter served