Determination of Production Cost for MSMEs Using the Full Costing Method

Abstract

Production costs are the expenses incurred in processing raw materials into finished products ready for sale. Production costs include, among others, raw material costs, direct labor costs, and factory overhead costs. The purpose of determining the cost of production is because many MSME actors still do not understand the importance of determining the cost of production and the correct method of calculating the cost of production. The research was conducted on cassava chip SMEs located in Telagasari Village, Kelumpang Hilir District, Kotabaru Regency, South Kalimantan Province. This research uses a quantitative research method where the data obtained is generated from interviews with MSME actors, in addition to data obtained from books, journals, the internet, and other media that support this research.  It is hoped that this research can provide an accurate determination of the cost of production so that MSME actors can compete with other similar MSME actors while still achieving optimal profits