Integrating Activity-Based Costing and Computer Simulation to Investigate Thailand-Malaysia Cross Border: A Case Study of Sadao Customs House

Abstract

Abstract This research aims to study the cross border service between Thailand-Malaysia at Sadao Customs House, Songkhla, Thailand. Initial problem was stated as severe traffic jam at border and lots of trucks waiting for custom processes. With the purpose of investigating for solution, vital information such as cost of service was needed. Nevertheless; under the current costing system, it cannot lead to the improvement direction as it has not revealed the efficiency of resources consumption which are used to drive service activities. Also, it cannot indicate wastes or unproductive activities operating under the service. Hence this research proposed activity-based costing (ABC) and computer simulation as an integrated tool to investigate the cross border service in order to acquire service cost information which will be used for improvement stage. Results of study can be expressed in terms of cross border service unit cost and activities analysis.