COMPARATIVE ANALYSIS OF FULL COSTING AND VARIABLE COSTING METHODS IN DETERMINING SELLING PRICES FOR MSMES

Abstrak

Determining the precise cost of production is a critical challenge for food and beverage enterprises to avoid losses and ensure appropriate pricing strategies. This research aims to examine the comparative application of the Full Costing and Variable Costing approaches in establishing product selling prices at UMKM Mie Gacoan Cikande. This study employs a descriptive qualitative method within a case study framework. The sample focused on the management and financial operations of Mie Gacoan Cikande, selected through purposive sampling. Data were gathered through direct observation, structured interviews, and a comprehensive documentation review of production expenses. The obtained data were analyzed by computing production costs under both the Full Costing and Variable Costing frameworks. The findings indicated that the Full Costing approach yielded a production cost of IDR 8,000 per serving due to the inclusion of all fixed and variable overheads, compared to IDR 7,250 per serving under the Variable Costing approach. In conclusion, Full Costing offers a more suitable basis for setting selling prices as it yields cost figures that are more comprehensive and precise for long-term business sustainability.