摘要：The calculation of the cost of production can be done in various ways. Ingeneral, basic pricing system set by the companys production is theconventional cost accounting systems (traditional cost systems). This system ofallocating production costs to each product to calculate the cost of production.The calculation of the cost of production of material costs and direct labor costscan be clearly allocated to each product in accordance with the product.However, to calculate the volume of production, if there is the number of unitsproduced more than usual will lead to greater overhead costs as well. ActivityBased Costing (ABC) is basically a determination of product cost (Cost OfGood Manufacturing) which aims to provide information on the cost ofproduction for the benefit of careful management, by measuring theconsumption of resources within each activity that is used to produce a product..As for who becomes the object of research is Rahmat Jeans Collection which islocated in the town of Depok results of scientific writing is to know whichmethod should be applied to Grace Jeans Collection. The advice given was thatGrace should Jeans Collection review the calculation method of the productioncost of conventional methods and consider the application of methods ofActivity Based Costing method (ABC), which can further help the managementin setting the sales price to consumers and helping to take any decision thefuture accurately, so it can be used to deal with the increasingly stringentindustry competition.
