A Cost-Driven Method for Determining the Optimum Selling Price in Tofu Production on the Household-Scale Tofu Agroindustry: A Case Study in Mataram, Indonesia

Authors : Tajidan Tajidan; Effendy; Halil Halil; Edy Fernandez; Efendy Efendy et al.
article cite 3 Year 2022
source: International Journal of Sustainable Development and Planning
Abstract

The determination of the cost of production is a necessity for every entrepreneur to establish the cost of the goods sold. The methods commonly used are the Cost Structure method, the Activity-Based Costing method, and the Volume Cost Profit method. The solution proposed in this article is a cost-driven method which is considered simpler in determining the optimal selling price for the tofu agroindustry on a household scale. This study aims to analyze the correlational relationship between raw material costs, firewood costs and labor wages with production, and to find a cost-driven formulation by modifying the Volume Cost Profit method. The research was conducted in the tofu agro-industry center in Kekalik Jaya Village, Sekarbela District and in Abianbadan Baru Village, Sandubaya District with the number of respondents 40 units of tofu agro-industry selected by the accidental proportional sampling method consisting of 27 agro-industry units in Kekalik Jaya sub-district and 13 agro-industry units in Abianbadan Baru village. Collecting data using triangulation methods, namely the method of sending questionnaires to respondents, survey methods with direct interviews with tofu agro-industry business actors, and observation methods at the production process site. The results showed that there was a positive correlation between the cost of raw material for soybean seeds and production and was the largest component of production costs so that it could be used as a cost determinant in the processing of soybeans into tofu, the cost driven method could be used as strategic planning in determining the selling price.


Concepts :
Agriculture and Agroindustry Studies
Management and Optimization Techniques
article cite 3 Year 2022 source International Journal of Sustainable Development and Planning
SDGs
Decent work and economic growth
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