Application of the ABC Method in Calculating Cost of Goods Sold at Redy Meubel

Amid increasingly fierce business competition, efficient and accurate cost management has become a crucial factor for companies to achieve optimal profits while maintaining business continuity. Redy Meubel is a company that uses traditional methods, which causes cost distortions because it only uses one cost driver in calculating factory overhead. This study aims to analyze the application of the ABC method in calculating COGS. The approach used is qualitative, with data collection techniques through interviews and documentation studies. The results of the study show that the ABC method can improve accuracy in calculating COGS by identifying various activities and using several cost drivers. A comparison between the traditional method and the ABC method shows that six of the nine products experienced overcost and the other three products experienced undercost.