DIFFERENCES IN METHOD IMPLEMENTATION VARIABLE COSTING AND FULL COSTING ON THE CALCULATION OF COST OF PRODUCTION IN DETERMINING PROFIT OF UMKM CIRENG HIKMAH KARAWANG

Abstract

This study aims to understand the differences in the implementation of the method variable costing and full costing on the calculation of the

  cost of production in determining profits at Cireng Hikmah UMKM. The method we use is the Quantitative Method. This research is based on primary data. We obtained primary data from an interview with Mr. Asep as the owner of the UMKM Cireng Hikmah. The results of this study are; if using method variable costing the production cost per unit cireng Hikmah is Rp. 1,723/pcs, whereas if using full costing Rp. 1,818/pcs. Pak Asep sells cireng for Rp. 2,500/pcs, the profit you get if you use the method variable costing is Rp. 777/pcs and Rp. 682/pcs if using full costing. Cireng Hikmah sells 400 pcs a day, so the total profit in a day is Rp. 310,800 for method variable costing and Rp. 272,800 for method full costing. Profit generated method variable costing greater than full costing. Method Variable costing is more effective in the short term because it only takes into account variable costs, while it is more effective in the long term full costing Because

takes into account all costs attached to the product both variable costs    and fixed costs