Construction Design Thinking in Cost Analysis: The Application of Activity-Based Costing (ABC) for the Efficiency of Costing of Production
Published:
2026-11-05Downloads
Abstract
Inaccurate costing of goods of production (COGS) can cause distortion of product margins and selling price decisions, especially in manufacturing businesses with a diversity of activities and overhead costs. This article examines how design thinking can be constructed as an approach to designing an Activity-Based Costing (ABC) system that is centered on the needs of cost information users. The locus of the study is the practice of determining HPP in manufacturing companies and micro, small, and medium enterprises (MSMEs), especially in the context of Indonesian studies. The study used a structured narrative literature review and conceptual synthesis of 13 scientific sources as well as one source of design process guidance that was chosen for its relevance to the ABCs, design thinking, and cost system implementation. The results of the synthesis resulted in a five-stage framework: empathize to map information needs, define to identify cost distortions, ideate to select activity groups and cost triggers, prototype to build HPP calculators, and test to compare output and usability of information. This framework distinguishes the accuracy of cost allocation from actual cost savings: changes in HPP numbers do not automatically mean a decrease in production expenses. Implicitly, the integration of design thinking and ABC has the potential to strengthen user acceptance, transparency of overhead allocation, and the quality of pricing decisions, with effectiveness still requiring empirical testing.
Keywords:
Design Thinking Activity Based Costing Cost of Production Cost Driver Cost AccuracyReferences
Bodendorf, F., & Franke, J. (2024). Synthesis of activity-based costing and deep learning to support cost management: A case study in the automotive industry. Computers & Industrial Engineering, 196, Article 110449. https://doi.org/10.1016/j.cie.2024.110449 DOI: https://doi.org/10.1016/j.cie.2024.110449
Dipya, I. N. T., & Martadinata, I. P. H. (2024). Determination of cost of production using the activity-based costing method of burnt pecan oil products at Oemah Uncle B MSMEs in Buleleng Regency. Scientific Journal of Accounting and Humanities, 14(1). https://doi.org/10.23887/jiah.v14i1.76637 DOI: https://doi.org/10.23887/jiah.v14i1.76637
Guritno, L. P., & Zai, S. N. P. (2024). Cost price analysis using full costing and activity-based costing in Sari Gurih Pak Cipto tofu production SMEs. Indonesia Accounting Research Journal, 11(4). https://journals.iarn.or.id/index.php/Accounting/article/view/318
Handayani, M., Rahmi, A. A., Aliza, Z., & Ali, Z. (2023). Application of the activity-based costing method in determining overhead costs. Indonesian Journal of Applied Accounting and Finance, 3(1), 19–26. https://doi.org/10.31961/ijaaf.v3i1.14380 DOI: https://doi.org/10.31961/ijaaf.v3i1.14380
Haricahyo, D., & Rachman, A. A. (2026). Evolution and optimization of activity-based costing for strategic cost management: A systematic literature review. JAT: Journal of Accounting and Tax, 5(1). https://journal.unita.ac.id/index.php/jat/article/view/2132 DOI: https://doi.org/10.36563/9vz1dy34
Kaplan, R. S., & Anderson, S. R. (2004). Time-driven activity-based costing. Harvard Business Review, 82(11), 131–138, 150. https://hbr.org/2004/11/time-driven-activity-based-costing DOI: https://doi.org/10.2139/ssrn.485443
Mayer, S., & Schwemmle, M. (2025). The impact of design thinking and its underlying theoretical mechanisms: A review of the literature. Creativity and Innovation Management, 34(1), 78–110. https://doi.org/10.1111/caim.12626 DOI: https://doi.org/10.1111/caim.12626
Paramita, L. P., & Violita, E. S. (2025). Challanges in implementing activity-based costing in family businesses: A case study of CV PXB. E-Jurnal Akuntansi, 35(3). https://doi.org/10.24843/EJA.2025.v35.i03.p15 DOI: https://doi.org/10.24843/EJA.2025.v35.i03.p15
Pranoto, F., & Amiluddin. (2024). Activity based costing system (ABC system) for accurate determination of cost of production of MSME products. Scientific Journal of Accounting and Finance, 3(1), 22–28. https://doi.org/10.69679/jian.v3i1.5819
Putra, A. A., Widyaningsih, A., & Andriana, D. (2025). Activity-based costing: A hybrid systematic literature review and bibliometric analysis of global research trends, implementation barriers, and future directions. International Journal of Research and Scientific Innovation, 12(11), 1263–1281. https://doi.org/10.51244/IJRSI.2025.12110113 DOI: https://doi.org/10.51244/IJRSI.2025.12110113
Sánchez-Rebull, M.-V., Niñerola, A., & Hernández-Lara, A.-B. (2023). After 30 years, what has happened to activity-based costing? A systematic literature review. SAGE Open, 13(2). https://doi.org/10.1177/21582440231178785 DOI: https://doi.org/10.1177/21582440231178785
Schlott, C. K. (2024). Design thinking and teamwork: Measuring impact: A systematic literature review. Journal of Organization Design, 13, 163–196. https://doi.org/10.1007/s41469-024-00177-x DOI: https://doi.org/10.1007/s41469-024-00177-x
Stanford University. (n.d.). A design thinking process. https://web.stanford.edu/class/me113/d_thinking.html
Yulianti, L., Fadli, M. D., & Ery, R. (2024). Comparative analysis of production price calculation (HPP) using activity based costing (ABC) and full costing (FC) methods at Tahu Putra Kember Factory. Research in Management of Technology and Business, 5(1), 1885–1896. https://periodical.uthm.edu.my/index.php/rmtb/article/view/16014
License
Copyright (c) 2026 Masnawaty Sangkala
This work is licensed under a Creative Commons Attribution 4.0 International License.
How to Cite
