Implementation of Production Cost Using the Full Costing Method at CV Tani Nias Makmur
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Abstract
This study aims to analyze the implementation of the cost of production (HPP) calculation at a local manufacturing enterprise to determine whether the company has applied accurate and appropriate costing methods. The research focuses on identifying the components of raw material costs, labor costs, and factory overhead costs, as well as evaluating the suitability of the company’s costing approach with generally accepted accounting principles. Using a descriptive qualitative method, data were collected from interviews, documentation, and direct observation. The results show that the company has not fully implemented a comprehensive cost of production calculation, particularly in allocating factory overhead costs, which leads to inaccurate product pricing and profit assessment. The study concludes that proper cost of production implementation is essential for determining competitive pricing, evaluating business performance, and supporting managerial decision-making. It is recommended that the company adopt a more structured costing system to enhance accuracy and financial effectiveness.
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How to Cite
Zebua, G. Z. K., Zebua, S., Telaumbanua, E., & Sophia Molinda Kakisina. (2025). Implementation of Production Cost Using the Full Costing Method at CV Tani Nias Makmur. ProBisnis : Jurnal Manajemen, 16(06), 2023–2029. Retrieved from https://ejournal.joninstitute.org/index.php/ProBisnis/article/view/1294
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Savitri, E., Abdullah, N. H. N., Andreas, Diyanto, V., & Syahza, A. (2023). The Effect of Financial Technology, Innovation, Business Strategy, and Market Orientation on Business Performance among Indonesian SMEs: A Study in Riau Province. Jurnal Pengurusan, 68. https://doi.org/10.17576/pengurusan-2023-68-11
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Tan, G. K. S. (2022). The “fintech revolution” is here! The disruptive impact of fintech on retail financial practices. Finance and Society, 8(2), 129–148. https://doi.org/10.2218/finsoc.7763
Thi, L., Nguyen, P., Kalabeke, W., Muthaiyah, S., Cheng, M. Y., Hui, K. J., Mohamed, H., Kim, D., Suryono, R. R., & Nam, R. J. (2021). P2P lending platforms in Malaysia: What do we know? [version 3; peer review: 1 approved, 2 approved with reservations]. 1–26. https://doi.org/10.12688/f1000research.73410.1
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Yang, X., Yang, J., Hou, Y., Li, S., & Sun, S. (2023). Gamification of mobile wallet as an unconventional innovation for promoting Fintech: An fsQCA approach. Journal of Business Research, 155(PA), 113406. https://doi.org/10.1016/j.jbusres.2022.113406
Alkhawaldeh, B. Y., Alhawamdeh, H., Al-Afeef, M. A. M., Al-Smadi, A. W., Almarshad, M., Fraihat, B. A. M., Soumadi, M. M., Nawasra, M., & Alaa, A. A. (2023). The effect of financial technology on financial performance in Jordanian SMEs: The role of financial satisfaction. Uncertain Supply Chain Management, 11(3), 1019–1030. https://doi.org/10.5267/j.uscm.2023.4.020
Arner, D. W., Buckley, R. P., Zetzsche, D. A., & Veidt, R. (2020). Sustainability, FinTech and Financial Inclusion. European Business Organization Law Review, 21(1), 7–35. https://doi.org/10.1007/s40804-020-00183-y
Babaei, G., Giudici, P., & Raffinetti, E. (2023). Explainable FinTech lending. Journal of Economics and Business, 125–126(June), 106126. https://doi.org/10.1016/j.jeconbus.2023.106126
Bartlett, R., Morse, A., Stanton, R., & Wallace, N. (2022). Consumer-lending discrimination in the FinTech Era. Journal of Financial Economics, 143(1), 30–56. https://doi.org/10.1016/j.jfineco.2021.05.047
CHEMMANUR, T. J., IMERMAN, M. B., RAJAIYA, H., & YU, Q. (2020). Recent Developments in the Fintech Industry. Journal of Financial Management, Markets and Institutions, 8(1), 1–31. https://doi.org/10.1142/S2282717X20400022
Deng, L., Lv, Y., Liu, Y., & Zhao, Y. (2021). Impact of fintech on bank risk-taking: Evidence from China. Risks, 9(5). https://doi.org/10.3390/risks9050099
Efimov, E., Koroleva, E., & Sukhinina, A. (2021). Competitiveness in the FinTech Sector: Case of Russia. International Journal of Technology, 12(7), 1488–1497. https://doi.org/10.14716/IJTECH.V12I7.5342
El Gohary, E. (2019). The impact of financial technology on facilitating e-government services in Egypt. Journal of Distribution Science, 17(5), 51–59. https://doi.org/10.15722/JDS.17.5.201905.51
Emara, N., & Zhang, Y. (2021). The non-linear impact of digitization on remittances inflow: Evidence from the BRICS. Telecommunications Policy, 45(4), 102112. https://doi.org/10.1016/j.telpol.2021.102112
Festa, G., Elbahri, S., Cuomo, M. T., Ossorio, M., & Rossi, M. (2023). FinTech ecosystem as influencer of young entrepreneurial intentions: empirical findings from Tunisia. Journal of Intellectual Capital, 24(1), 205–226. https://doi.org/10.1108/JIC-08-2021-0220
Gancarczyk, M., Łasak, P., & Gancarczyk, J. (2022). The fintech transformation of banking: Governance dynamics and socio-economic outcomes in spatial contexts. Entrepreneurial Business and Economics Review, 10(3), 143–165. https://doi.org/10.15678/EBER.2022.100309
Gao, J. (2022). Has COVID-19 hindered small business activities? The role of Fintech. Economic Analysis and Policy, 74, 297–308. https://doi.org/10.1016/j.eap.2022.02.008
Giaretta, E., & Chesini, G. (2021). The determinants of debt financing: The case of fintech start-ups. Journal of Innovation and Knowledge, 6(4), 268–279. https://doi.org/10.1016/j.jik.2021.10.001
Hoque, A. (2023). Fintech’s game-changing opportunities for SMEs: A study on selected SMEs in Bangladesh. Asian Economic and Financial Review, 13(5), 308–319. https://doi.org/10.55493/5002.v13i5.4780
Hornuf, L., & Haddad, C. (2019). The Emergence of the Global Fintech Market : Economic and Technological Determinants Christian Haddad The Emergence of the Global Fintech Market : Economic and Technological Determinants Abstract. Small Business Economics, 53, 81–105.
Kim Lien, N. T., Doan, T. R. T., & Bui, T. N. (2020). Fintech and banking: Evidence from Vietnam. Journal of Asian Finance, Economics and Business, 7(9), 419–426. https://doi.org/10.13106/JAFEB.2020.VOL7.NO9.419
Kostin, K. B., Fendel, R., & Wild, F. (2022). Comparing the Situation of FinTech Start-Ups in Russia and Germany through Equity Investments. Economies, 10(2), 1–19. https://doi.org/10.3390/economies10020033
Marjudi, S., Setik, R., Ahmad, R. M. T. R. L., Hassan, W. A. W., & Kassim, A. A. M. (2023). Utilization of Business Analytics by SMEs in Halal Supply Chain Management Transactions. International Journal on Informatics Visualization, 7(2), 407–415. https://doi.org/10.30630/joiv.7.2.1308
Mascarenhas, A. B., Perpétuo, C. K., Barrote, E. B., & Perides, M. P. (2021). The influence of perceptions of risks and benefits on the continuity of use of fintech services. Brazilian Business Review, 18(1), 1–21. https://doi.org/10.15728/BBR.2021.18.1.1
Mlambo, C., & Msosa, S. K. (2020). The effect of financial technology on money demand: Evidence from selected African states. International Journal of Economics and Business Administration, 8(1), 366–373. https://doi.org/10.35808/ijeba/430
Muganyi, T., Yan, L., Yin, Y., Sun, H., Gong, X., & Taghizadeh-Hesary, F. (2022). Fintech, regtech, and financial development: evidence from China. Financial Innovation, 8(1). https://doi.org/10.1186/s40854-021-00313-6
Ningrat, R. G., & Nurzaman, M. S. (2019). Developing Fintech and Islamic Finance Products in Agricultural Value Chain. Journal of Islamic Monetary Economics and Finance, 5(3), 491–516. https://doi.org/10.21098/jimf.v5i3.1077
Savitri, E., Abdullah, N. H. N., Andreas, Diyanto, V., & Syahza, A. (2023). The Effect of Financial Technology, Innovation, Business Strategy, and Market Orientation on Business Performance among Indonesian SMEs: A Study in Riau Province. Jurnal Pengurusan, 68. https://doi.org/10.17576/pengurusan-2023-68-11
Suryanto, S., Muhyi, H. A., Kurniati, P. S., & Mustapha, N. (2022). Banking Financial Performance in the Industry Financial Technology Era. Journal of Eastern European and Central Asian Research, 9(5), 889–900. https://doi.org/10.15549/jeecar.v9i5.1075
Tan, G. K. S. (2022). The “fintech revolution” is here! The disruptive impact of fintech on retail financial practices. Finance and Society, 8(2), 129–148. https://doi.org/10.2218/finsoc.7763
Thi, L., Nguyen, P., Kalabeke, W., Muthaiyah, S., Cheng, M. Y., Hui, K. J., Mohamed, H., Kim, D., Suryono, R. R., & Nam, R. J. (2021). P2P lending platforms in Malaysia: What do we know? [version 3; peer review: 1 approved, 2 approved with reservations]. 1–26. https://doi.org/10.12688/f1000research.73410.1
Thottoli, M. M., Islam, M. A., Ahsan, A., Yusof, M. F., Hassan, M. S., & Chowdhury, R. S. (2024). Exploring mediating and moderating factors of FinTech adoption for innovations in SMEs. Cogent Economics and Finance, 12(1). https://doi.org/10.1080/23322039.2024.2387443
Yang, X., Yang, J., Hou, Y., Li, S., & Sun, S. (2023). Gamification of mobile wallet as an unconventional innovation for promoting Fintech: An fsQCA approach. Journal of Business Research, 155(PA), 113406. https://doi.org/10.1016/j.jbusres.2022.113406