Cost Accounting System Practices: A Case Study of Graha Aryata Surabaya Construction Services Business

Purpose: This study was conducted to analyze the application of cost accounting practices of Graha Aryata Surabaya construction business. This business is engaged in building construction services. In this business engaged in building construction services and has had internal control procedures starting from the initial process of establishing relationships with clients until the project is completed. Method: The research method used is a qualitative description method with a case study method. The object of this research is the internal control system on construction service project costs collected through interviews, direct observation, and managed documentation. Findings: The results of this study indicate that Graha Aryata’s individual construction business has implemented basic elements of cost accounting, with the application of information technology that supports accurate cost recording, such as recording raw material and direct labor costs. However, there is no special function that handles cost recording and budgeting, so the recording process does not run optimally and less effectively. Implication: This finding suggests the importance of establishing a clear structure of the accounting function as well as developing a more systematic and efficient budgeting system. The findings emphasize the importance of establish a clear accounting function structure and developing an integrated budget system. With these improvements, financial control can be enhanced, project management becomes more effective, and cost monitoring can be done more accurately. This research also provides practical recommendations for small and medium-sized construction businesses that want to strengthen their internal control and cost management. Originality: This research makes an important contribution to the existing literature by presenting concrete evidence on the deficiencies in internal control and cost management, while providing insights that can be directly applied by similar businesses seeking to improve their financial and operational efficiency.