This article describes how to apply costs based on the determination of Activity-Based Costing in a chemical company. Global competition is increasing, causing every company from various fields that are competing to require accurate information and cost calculation methods in assessing the achievement of profitability. This research uses the literature survey method and conclusions are drawn from theoretical analysis and discussion results. This research will add insight into how to apply costs based on the determination of Activity-Based Costing in chemical companies. Cost management methods such as Activity-Based Costing (ABC) are widely applied in companies. By using the Activity-Based Costing method, information and calculation of cost of goods will be more accurate, because Activity-Based Costing describes the value system in the company's activities used by each product. The method of calculating costs with the Activity-Based Costing system based on activities, will generate greater profits than conventional (traditional) systems. Therefore, the Activity-Based Costing system plays a role in measuring and evaluating the level of achievement of company profitability, because the Activity-Based Costing System has better accuracy than using conventional methods to increase profitability and decision making.