Production Cost Calculation Analysis Using Variable Costing Method

Abstract

Information on the cost of goods manufactured is calculated for a certain period of time useful for management. determine the selling price of products, monitor the realization of production costs, calculate periodic profit or loss, determine the cost of goods inventory of finished products and products in process presented in the balance sheet. This will then serve as the basis for setting the selling price as well as a tool to monitor the realization of production costs and guide business decision making. This study will analyze the company's production costs with a variable costing approach. The type used in this study is qualitative, namely a description of the object of research and quantitative, namely in the form of the production process, types of production, company production cost reports obtained from the Roti Maknya company in Mojokerto. Based on the calculation of the variable costing method obtained different results with calculations made by the company. By using a calculation through a variable costing approach, the total production cost is obtained which is lower than the calculation made by the company. The Baking Company should use the calculation using the variable costing method, because in this variable costing method only all costs related to the production process are calculated, while in the real calculation the company costs are also calculated.