The Study and Improvement of Cost Accounting System Employing Participatory Action Research for System to Support Job Order Costing: A Linoleum in Nakhon Pathom Province
DOI:
https://doi.org/10.14456/rc-sdj.2025.14Keywords:
cost accounting system, participatory action research, make-to-order, linoleum businessAbstract
Background: Job-ordered production requires accurate cost data that is consistent with the actual manufacturing process. This research aims to enhance the current cost accounting system and design, and propose improvements in cost accounting for job-ordered production.
Methods: Participatory action research using a linoleum factory in Nakhon Pathom Province as a case study. Five purposively selected informants were selected: business owners, production managers, production line supervisors, accounting supervisors, and cost accounting staff. The instrument used was an open-ended structured interview form. The questions were divided according to the informants' roles. Data collection was based on action research concepts, including in-depth individual interviews and informal observations. A workshop on creating a cost accounting system for custom-made work was also organized. Data were analyzed using content analysis, with cost accounting principles serving as a framework, and a data flow diagram was created. For the analysis of variable and fixed cost data, the percentage and sum methods are used, while Cost allocation uses the multiplication method.
Results: The business has seen a decrease in sales and therefore has to reduce production capacity. The business owner wants to use the remaining production capacity to generate income by accepting orders from customers. The current cost accounting system is a continuous production system, which is different from the job-to-order cost accounting system. Therefore, the problem must be studied and redesigned. In designing the new system, a job order form is designed, a new data flow is defined, and it is recommended to allocate costs based on the number of hours produced per order.
Conclusions: The research designed a new cost accounting system to support production orders from customers. This involves calculating production costs for each customer's order. The new cost accounting system is suitable for accepting orders for oilcloth production according to the quantity and quality specified by the customer. It enables the collection of complete and accurate cost data, which will help business owners set prices from customers and achieve appropriate profits.
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