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Research Paper | Accounting | Indonesia | Volume 8 Issue 7, July 2019

Employee Perception Analysis about the Effectiveness of Activity Based Costing, Overall Equipment Effectiveness and Cost Saving Potential on Product Profitability

Yuli Suryandari | Yudhi Herliansyah

Abstract: This study aims to determine the effect of Activity Based Costing, Overall Equipment Effectiveness and Cost Savings Potential on Product Profitability in PT framas Indonesia based on employee perceptions. The population of this research is all employees working at PT framas Indonesia. Samples were obtained using purposive sampling method as many as 42 employees related to activity based costing variables, overall equipment effectiveness, cost saving potential, and product profitability. The method used in this study is multiple regression analysis with SPSS software. The results showed that: 1) Based on employee perceptions, the effectiveness of the application of Activity Based Costing did not significantly affect Product Profitability, 2) Based on employee perceptions, the effectiveness of applying Overall Equipment Effectiveness significantly affected the product, 3) Based on employee perceptions, Cost Saving Potential significant effect on product profitability.

Keywords: Activity Based Costing, Overall Equipment Effectiveness, Cost Savings Potential, Product Profitability

Edition: Volume 8 Issue 7, July 2019,

Pages: 829 - 836