TABLE OF CONTENTS. Title Page... Certificate of Approval.. Table of Contents... List of Tables... List of Figures... Chapter 1 Introduction...
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1 TABLE OF CONTENTS Title Page... Certificate of Approval.. Abstract. Preface Table of Contents... List of Tables.... List of Figures... i ii iii v vi xii xiii Chapter 1 Introduction Research Background Research Scope Aims and Benefits Research Methodology Thesis Strcuture Time and Place of Thesis. 6 Chapter 2 Theoretical Framework Cost Definition and Classification Cost Definition Cost Classification Environmental Cost Environmental Cost Definition. 9 vi
2 2.2.2 Type of Environmental Cost Budgeting Definition of Budgeting Advantages of Budgeting Type of Budget Limitations of Budgeting Developing the Budget Methods of Setting Budgets Factors in Determining the Budgeted Costs Variance Analysis Direct Material Variances Direct Labor Variances Manufacturing Overhead Variances Chapter 3 Company Profile Company History and Development Vision, Mission, and Corporate Strategy Organizational Structure Job Description Job Description at the Managerial Level A.M Waste treatment Pongkor Gold Business Unit Production Process Plant Cyanide vii
3 3.6.2 Recovery Waste Treatment The Budgeting Process Budgets for Maintaining Environmental Internal Failure Activity Direct Material Budget Direct Material Dosage Budget Direct Material Usage Budget Purchasing Procedure Direct Labor Budget Manufacturing Overhead Budget Chapter 4 Discussion & Analysis ANTAM Method Used in Variance Analysis The Writer s Method Used in Variance Analysis Evaluation of the Budgeting Process for Environmental Internal Failure Cost Evaluation of the Direct Material Budget for Environmental Internal Failure Cost Evaluation of ANTAM s Calculaton of Direct Material Price Variance Direct Material Price Variance The Formula Used For Calculating Direct Material Price Variance.. 60 viii
4 4.4.4 Analysis of Direct Material Price Variance Direct Material Quantity Variance The Formula Used For Calculating Direct Material Quantity Variance Analysis of Direct Material Quantity Variance Evaluation of Direct Labor Budget Evaluation of Direct Labor Budget Evaluation of ANTAM s Calculation of Direct Labor Budget The Formula Used For Calculating Direct Labor Rate Variance Analysis of Direct Labor Rate Variance Direct Labor Hours Variance The Formula Used For Calculating Direct Labor Hours Variance Analysis of Direct Labor Hours Variance Variable Manufacturing Overhead Variance Evaluation of Variable Manufacturing Overhead Budget Evaluation of ANTAM s Calculation of Variable Manufacturing Overhead Variance Variable Manufacturing Overhead Spending ix
5 Variance The Formula Used For Calculating Variable Manufacturing Overhead Spending Variance Analysis of Variable Manufacturing Overhead Spending Variance Variable Manufacturing Overhead Efficiency Variance The Formula Used For Calculating Variable Manufacturing Overhead Efficiency Variance Analysis of The Variable Manufacturing Overhead Efficiency Variance Fixed Manufacturing Overhead Variance Fixed Manufacturing Overhead Spending Variance The Formula Used For Calculating Fixed Manufacturing Overhead Spending Variance Analysis of The Fixed Manufacturing Overhead Spending Variance Fixed Manufacturing Overhead Volume Variance The Formula Used For Calculating Fixed Manufacturing Overhead Volume Variance Analysis of the Fixed Manufacturing Overhead x
6 Volume Variance. 77 Chapter 5 Conclusion & Recommendation Conclusion Recommendation 80 xi
7 LIST OF TABLES No. Table Page 1.1 Thesis Timeline Schedule The Budget and Actual Direct Material Cost The Budget and Actual Direct Labor Costs The Budget and Actual Manufacturing Overhead Cost Direct Material Price Variance Calculation Direct Material Quantity Variance Calculation Actual Direct Labor Rate Calculation Standard Direct Labor Rate Calculation Direct Labor Rate Variance Calculation Direct Labor Hour Variance Calculation Variable Overhead Spending Variance Variable Overhead Efficiency Variance The fixed overhead spending variance calculation Calculation of Applied Fixed Overhead Calculation of Fixed Overhead Volume Variance 77 xii
8 LIST OF FIGURES No. Figures Page 3.1 Organization Structure at The Corporate Level The Budgeting Process Flow at Pongkor SBU Level Organizational Structure at ANTAM SBU Gold Pongkor Part 1 of Organizational Structure at ANTAM SBU Gold Pongkor Part 2 of Organizational Structure at ANTAM SBU Gold Pongkor Part 3 of ANTAM Purchasing Procedure 44 xiii
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