ACTIVITY-BASED

BUDGETING
By
Mukhtaruddin, SE., MSi., Ak
Palembang, 2007

Definisi
Hansen Mowen (2003)
ABB is the process of estimating the demand for
each activitys out put and assessing the cost of
resources required to produce this output
Hilton, Maher and Selto (2000)
ABB is the process of developing a master budget
using information obtained from ABC analysis

Cont..
Brimson and Antos
ABB is the process of planning and controlling the
expected activities of the organization to derive a cost
effective budget that meets forecast workload and
agreed strategic goals

Blocher, Chen and Lin

ABB is a budgeting process that focuses on cost of
activity or cost drivers necessary for production and
sales

Prinsip ABB
ABB hrs menggambarkan apa yang
dilakukan, aktivitas atau proses usaha, bukan
unsur biaya.
ABB hrs didasarkan pada beban kerja
(workload) mendatang
Anggaran akhir hrs menggambarkan
perubahan dalam biaya sumber daya
Perhatian pada continuously improvement.

Kelemahan Anggaran Tradisional

Does not support value creation
Is a spreadsheet exercise applying an arbitrary
percentage to prior period actual
Focuses on inputs rather than output
Does not identify and understand product and
customer features that cause variation
Does not support continuous improvement

 Focuses on cost centers rather than on

business process improvement
Does not control cost during growth
Promotes budget gamesmanship
Does not consider activity workload
Does not provide business process
financial statement

 Does not identify levels of service

Does not identify waste
Does not connect budgeting to economic
value and strategy
Does not focus on unused capacity, but
only fixed and variable costs

Manfaat ABB
Place responsibility and accountability on
employees to manage their activity to achieve
performance target
Present a more realistic view of workload
including the impact of service levels
Yield insights into causes variation that are
actionable
Provides an ability to understand how
product/services create demand for specific
activities that in turn drive the requirement of
resources

 Embeds a process views, which more explicitly

illustrates departmental interdependencies
Create the ability to monitor and control at a
more actionable level
Provides visibility into managing excess and/or
insufficient capacity

3 Elemen Kunci dari ABB

Type of work to be done
Quantity of work to be done
Cost of work to be done

Tradisional VS ABB
Budgeting Unit
Traditional: Expressed as a cost of functional
areas or spending categories, ABB: Expressed
as a cost of performing activities
Focus on
Traditional: input resources, ABB: value-added
activities
Orientation
Traditional: Histories, ABB: continuous
improvement

 Roles of Supplier and Customers

Traditional: Does not formally consider supplier
and customers in budgeting, ABB: Coordinates
with suppliers and considers the needs of
customers in budgeting
Control Objective
Traditional: Maximizes managers performances,
ABB; synchronize activities
Budget Base
Traditional: cost behavior patters: variable and
fixed cost, ABB; utilized and unutilized capacity

Langkah2 Dalam ABB

Estimates next periods expected production and
sales volumes by individual products and
customers
Forecast the demand for organization activities
Calculate the resource demands to perform the
organizational activities
Determine the actual resource supply to meet
the demands
Determine activity capacity