Analysis of The Implementation of Activity-Based Costing (ABC) In Improving The Accuracy of Cost of Goods Sold Calculations In Manufacturing Companies

Business competition in the manufacturing sector requires companies to manage resources effectively and produce accurate cost information. Accurate costing of goods manufactured is a crucial factor in managerial decision-making, pricing, cost control, and performance evaluation. Traditional cost accounting systems often fail to accurately reflect resource consumption because overhead costs are allocated based on a single cost driver. This study aims to analyze the effectiveness of Activity-Based Costing (ABC) in determining cost of goods manufactured more accurately than traditional methods. The research method used is descriptive qualitative with a case study approach in a medium-scale manufacturing company. Data collection was conducted through interviews, observation, documentation, and the experiences of research subjects. This study focuses on the meaning, process, and understanding of an event or behavior. Data analysis was performed by identifying production activities and determining cost drivers. The research results showed that the Activity-Based Costing method provided more accurate data, thereby helping companies improve the effectiveness of cost control and managerial decision-making