Comparative Analysis of Sell Price Using Variable Costing and Full Costing

Abstract

- The calculation of the cost of production is an important thing that must be considered in determining
the selling price of a product. The correct and accurate calculation of the cost of goods manufactured is
something that every business entity must do, because without calculating the correct cost of production, a
company may have problems determining the selling price of a product. This study aims to analyze the
calculation of the selling price of milk products using the calculation of the cost of production using the full
costing method and variable costing in the dairy farming community in KPSP Saluyu. The data used is
secondary data in the form of production cost data from cow's milk farmers in KPSP Saluyu for the period July
2018 - February 2019. The sampling technique used was purposive sampling. The variables tested were the cost
of production with the full costing method, the price of production variable costing and selling price. PairedSamples T Test is used to test the hypothesis, to analyze the average comparison of two variables in one group,
namely testing the difference in the average selling price using the variable costing and full costing method of
production cost. The critical value of t is determined by the degree of freedom which is equal to n-1. The level
of significance is 5% or 0.05 with degrees of freedom df = n-k-1. The conclusion of this study, H0 is rejected
and Ha is accepted, that is, there is a significant difference between the selling price with the variable costing
and full costing method of production cost.