ANALYSIS OF PRODUCTION COSTS AND DETERMINATION OF SELLING PRICE IN THE "DAPUR KELOR" HOUSEHOLD INDUSTRY: A STUDY USING ACTIVITY-BASED COSTING AND COST-PLUS PRICING METHODS
The home industry in the form of products made from moringa raw materials is growing along with the efforts of the Indonesian government through the Indonesian Ministry of Health to overcome stunting. One of the increasingly growing home industries is "Dapur Kelor” (Moringa Kitchen). The calcul...
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| Format: | Article |
| Language: | English |
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iVolga Press
2023-06-01
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| Series: | Eurasia: Economics & Business |
| Subjects: | |
| Online Access: | http://econeurasia.com/issue-2023-06/article_04.pdf |
| _version_ | 1827386038975201280 |
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| author | Sumby S.K. Nendissa D.R. Siubelan Y.C.W. Kana Y.R. |
| author_facet | Sumby S.K. Nendissa D.R. Siubelan Y.C.W. Kana Y.R. |
| author_sort | Sumby S.K. |
| collection | DOAJ |
| description | The home industry in the form of products made from moringa raw materials is growing along with the efforts of the Indonesian government through the Indonesian Ministry of Health to overcome stunting. One of the increasingly growing home industries is "Dapur Kelor” (Moringa Kitchen). The calculation of the cost price and the determination of the selling price of household agro-industrial products is very important to ensure the continuity and success of the business. This study aims to determine the company's cost of goods sold, the calculation of the cost of goods using the Activity Based Costing (ABC) method, and the determination of the selling price using the cost plus pricing method in the "Dapur Kelor" home industry in Kupang City, Indonesia. The results of this study indicate that the determination of the cost of production used by the "Dapur Kelor” Home Industry company is by adding up the total production costs consisting of raw material costs, labor costs, and factory overhead costs which are then divided by the total units produced and the selling price is determined based on market prices.Calculation of production costs using the Activity Based Costing method includes the first stage of classifying overhead costs into activities consisting of identifying activities, assigning costs to activities, and determining group rates and the second stage of imposing overhead costs on products where overhead costs are charged using cost drivers of each product and results in the cost of production for the period May 25, 2022, for each moringa tea of Rp. Rp. 20,427/pcs and premium moringa powder Rp. 28,792/Pcs for determining the selling price using the cost plus pricing method which is smaller than the selling price applied by the Kelor Kitchen Household Industry. |
| first_indexed | 2024-03-08T15:36:12Z |
| format | Article |
| id | doaj.art-188a77a482244a4d9dd127458f7c5861 |
| institution | Directory Open Access Journal |
| issn | 2522-9710 |
| language | English |
| last_indexed | 2024-03-08T15:36:12Z |
| publishDate | 2023-06-01 |
| publisher | iVolga Press |
| record_format | Article |
| series | Eurasia: Economics & Business |
| spelling | doaj.art-188a77a482244a4d9dd127458f7c58612024-01-09T20:19:36ZengiVolga PressEurasia: Economics & Business2522-97102023-06-017264653ANALYSIS OF PRODUCTION COSTS AND DETERMINATION OF SELLING PRICE IN THE "DAPUR KELOR" HOUSEHOLD INDUSTRY: A STUDY USING ACTIVITY-BASED COSTING AND COST-PLUS PRICING METHODSSumby S.K.0Nendissa D.R.1Siubelan Y.C.W.2Kana Y.R.3Department of Agribusiness, Faculty of Agriculture, University of Nusa CendanaDepartment of Agribusiness, Faculty of Agriculture, University of Nusa CendanaDepartment of Agribusiness, Faculty of Agriculture, University of Nusa CendanaDepartment of Agrotechnology, Faculty of Agriculture, Nusa Cendana UniversityThe home industry in the form of products made from moringa raw materials is growing along with the efforts of the Indonesian government through the Indonesian Ministry of Health to overcome stunting. One of the increasingly growing home industries is "Dapur Kelor” (Moringa Kitchen). The calculation of the cost price and the determination of the selling price of household agro-industrial products is very important to ensure the continuity and success of the business. This study aims to determine the company's cost of goods sold, the calculation of the cost of goods using the Activity Based Costing (ABC) method, and the determination of the selling price using the cost plus pricing method in the "Dapur Kelor" home industry in Kupang City, Indonesia. The results of this study indicate that the determination of the cost of production used by the "Dapur Kelor” Home Industry company is by adding up the total production costs consisting of raw material costs, labor costs, and factory overhead costs which are then divided by the total units produced and the selling price is determined based on market prices.Calculation of production costs using the Activity Based Costing method includes the first stage of classifying overhead costs into activities consisting of identifying activities, assigning costs to activities, and determining group rates and the second stage of imposing overhead costs on products where overhead costs are charged using cost drivers of each product and results in the cost of production for the period May 25, 2022, for each moringa tea of Rp. Rp. 20,427/pcs and premium moringa powder Rp. 28,792/Pcs for determining the selling price using the cost plus pricing method which is smaller than the selling price applied by the Kelor Kitchen Household Industry.http://econeurasia.com/issue-2023-06/article_04.pdfcost of productionselling priceactivity based costingcost plus pricing |
| spellingShingle | Sumby S.K. Nendissa D.R. Siubelan Y.C.W. Kana Y.R. ANALYSIS OF PRODUCTION COSTS AND DETERMINATION OF SELLING PRICE IN THE "DAPUR KELOR" HOUSEHOLD INDUSTRY: A STUDY USING ACTIVITY-BASED COSTING AND COST-PLUS PRICING METHODS Eurasia: Economics & Business cost of production selling price activity based costing cost plus pricing |
| title | ANALYSIS OF PRODUCTION COSTS AND DETERMINATION OF SELLING PRICE IN THE "DAPUR KELOR" HOUSEHOLD INDUSTRY: A STUDY USING ACTIVITY-BASED COSTING AND COST-PLUS PRICING METHODS |
| title_full | ANALYSIS OF PRODUCTION COSTS AND DETERMINATION OF SELLING PRICE IN THE "DAPUR KELOR" HOUSEHOLD INDUSTRY: A STUDY USING ACTIVITY-BASED COSTING AND COST-PLUS PRICING METHODS |
| title_fullStr | ANALYSIS OF PRODUCTION COSTS AND DETERMINATION OF SELLING PRICE IN THE "DAPUR KELOR" HOUSEHOLD INDUSTRY: A STUDY USING ACTIVITY-BASED COSTING AND COST-PLUS PRICING METHODS |
| title_full_unstemmed | ANALYSIS OF PRODUCTION COSTS AND DETERMINATION OF SELLING PRICE IN THE "DAPUR KELOR" HOUSEHOLD INDUSTRY: A STUDY USING ACTIVITY-BASED COSTING AND COST-PLUS PRICING METHODS |
| title_short | ANALYSIS OF PRODUCTION COSTS AND DETERMINATION OF SELLING PRICE IN THE "DAPUR KELOR" HOUSEHOLD INDUSTRY: A STUDY USING ACTIVITY-BASED COSTING AND COST-PLUS PRICING METHODS |
| title_sort | analysis of production costs and determination of selling price in the dapur kelor household industry a study using activity based costing and cost plus pricing methods |
| topic | cost of production selling price activity based costing cost plus pricing |
| url | http://econeurasia.com/issue-2023-06/article_04.pdf |
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