Determining the Cost of Product Storage Services in a Refrigerated Warehouse Using Time-Driven Activity-Based Costing

Abstract

Determination of the cost of goods sold in the services industry is an important part of a service company's 
business activities. Establishing the cost of goods sold at v Dingin Indonesia (Gudings) as a new company in the cold 
chain sector requires a long-term plan so that the business continues to grow. The current tariff setting has not been 
formed following service specifications therefore, this research was conducted to provide a cost suggestion for storage 
services by implementing a time-driven activity-based costing (TDABC) method based on the activities and resources 
used by calculating the time taken by the company to produce services and determining the cost of goods based on 
cubication. The results of calculations using the TDABC method for the two types of storage services offered by 
Gudings, namely Storage and Fulfillment services, yield the cost of services for Storage services with the formula 
(55.624x/CBM + 10.624xy/CBM per day) for products stored in the freezer and (55.624x/CBM + 4.943xy/CBM per 
day) for products stores in cold storage. As for the Fulfillment services, the cost is based on the formula 
(112.815x/CBM + 16.994xy/CBM per day) for products stored in cold storage.