Calculation of production costs and operating profit of MSME in terms of accounting standards
Avincennia Vindy Fitriana

Universitas Bina Insani (cohost)

Abstract

This study uses a survey technique with a mixed method which aims to evaluate the calculation of production costs to the profit made by MSMEs. Respondents of this study were 47 SMEs in the food and beverage business sector. This research was conducted by means of an online survey by distributing questionnaires, the results of which were further analyzed qualitatively and hypotheses were tested using a paired sample t test. The results of this study indicate that the level of understanding of respondents in calculating production costs to operating profit is low, this is evidenced by the results of hypothesis testing. The first hypothesis shows that there is no significant difference between the calculation of production costs calculated by MSME actors and calculations in accordance with accounting standards. While the second hypothesis shows that there is a significant difference between the calculation of profits calculated by MSME actors and calculations in accordance with accounting standards. The results of this study indicate that MSME actors need to be given assistance in determining production costs to determining profits, so that the accounting information produced can be trusted and can be used as decision making.

Keywords: cost production, operating profit, accounting, standards, MSME

Topic: Economic