Analysis of the Determination of Crispy Onion Production Cost to Increase Revenue

Abstract

This research was conducted to overcome the imbalance in production costs and profits faced by PT Sinergi Brebes Teknologi. This study aims to analyze the determination of crispy onion production costs through the application of the target costing method, and analyze the income of crispy onion products. The methods used in this study include traditional costing and target costing. Target costing is a strategic approach that determines production costs based on competitive market selling prices and the company's desired profit target. The analysis carried out includes the evaluation of production costs and value engineering to find more economical alternatives. The results of the study show that the company implements a costing target based on profit and value engineering in determining the production cost of crispy onions to meet the company's profit target, which is 15.28% of 80 grams of crispy onions, and 9.13% of the profit target of 50 grams of crispy onions. The implementation of the costing target has a positive impact on increasing the company's revenue and increasing production cost efficiency. Therefore, it is recommended that PT Sinergi Brebes Innovative apply the target costing method to all shallot products to increase production cost efficiency and profit. This application allows companies to adjust production costs to competitive market prices and predetermined profit targets.