The Development of Costing Management by Activity Base Cost Analysis of Peanut Processing Community Enterprise Group Bann Phan Roi Et Province

Abstract

 This research aims to analyze the activity-base cost of peanut processing community enterprise group Bann Phan Dongsing sub-district  Roi Et province and develop a cost reduction approach. Using a participatory action research process. The population is the member of peanut processing community enterprise group 28 persons. Data collected by participatory behavior observation, semi-structured in-depth interview and activity-base cost data recording. The results of the research were as follows: The peanut processing community enterprise group has a simple management structure. It is divided into two main work segments; management department and production department. Cost is divided into production costs and other overhead costs. Calculate the average cost by the old method is 12.73 bath per unit. Calculate the average cost by activity-base cost analysis is 11.43 bath per unit, 10.21 percent decrease. The approach to reducing costs are estimated sales volume for raw material procurement planning to reduce the purchasing cycle, collect orders and ship in bigger lots to reduce shipping cycle and machine depreciation based on actual hours of use