Activity-Based Budgeting Approach for Optimizing Budget Planning and Control at GDC Magelang Metrosquare Dental Clinic

Maria Ditya Wartadiani (Master of Management Study Program Concentration in Hospital Management, Adhirajasa Reswara Sanjaya University, Bandung, Indonesia)
Erliany Syaodih (Master of Management Study Program Concentration in Hospital Management, Adhirajasa Reswara Sanjaya University, Bandung, Indonesia)
Yani Restiani Widjaja (Master of Management Study Program Concentration in Hospital Management, Adhirajasa Reswara Sanjaya University, Bandung, Indonesia)
Rian Andriani (Master of Management Study Program Concentration in Hospital Management, Adhirajasa Reswara Sanjaya University, Bandung, Indonesia)

ARMADA : Jurnal Penelitian Multidisiplin
Vol. 4 No. 9 (2026): ARMADA : Jurnal Penelitian Multidisplin, September 2026

This study aims to analyse the implementation of Activity-Based Budgeting (ABB) in improving budget planning and control at GDC Magelang Metrosquare Dental Clinic. The study addresses the limitations of conventional budgeting approaches that rely mainly on historical financial data without systematically considering operational activities and resource capacities. A descriptive exploratory design with a qualitative case study approach was employed. Data were collected through interviews, direct observation, and internal clinic documentation, with source triangulation applied to ensure validity. The ABB framework involved activity identification, cost driver determination, activity cost calculation, activity-based budget preparation, and managerial evaluation. The findings demonstrate that ABB enables more accurate service volume forecasting, resource requirement estimation, total budget calculation, and capacity analysis compared with conventional budgeting. The study also identified idle capacity in treatment rooms and several resources, which can be optimised through improved promotional strategies, patient education, and quality enhancement activities. Overall, ABB improves budget accuracy and strengthens managerial control in dental clinic operations. This study is limited by its single-site focus and short observation period.