Evaluation of Laundry Cost of Sales Calculation In a Large Scale Laundry Company

Abstract

This research aims to find out the calculation formula of the laundry Cost
of Sales (COS) that PT.X applied and evaluate it using the activity-based
costing (ABC) method. The object of this research is a large-scale laundry
company that provides quality laundry services and free delivery to various
clients in the Greater Jakarta area (Jabodetabek). The method used in this
research is qualitative with a case study approach. The research results show
that the current COS calculation per kg of hotel laundry is 40,43% greater
(overcosting) than the ABC method. Meanwhile, COS per kg of guest &
uniform laundry is 20,74% smaller (undercosting) than the ABC method.
Other results show that the gross profit margin for both laundries is 5,64%
greater if PT.X uses the ABC method. The large number of indirect costs
and there are the differences in machine use and manual handling each of
laundry indicate that activity-based costing needs to be considered by
company management to obtain more appropriate cost product information.