PENERAPAN TARGET COSTING DALAM PERENCANAAN BIAYA PRODUKSI SEBAGAI SALAH SATU FAKTOR UNTUK PENINGKATAN LABA PADA UD INTAN JAYA

Abstract

Target Costing is a technique that focuses on cost planning by setting target costs for product. The benefit of using target costing is that the company can control the cost incurred by reducing ineffective costs so that the company can achieve the desired profit. UD Intan Jaya is a businens that produces furniture in the form of storefronts and cabinets. The purpose of this study is to implement target costing in planning production costs so as to increase profits at UD Intan Jaya. This research was conducted at UD Intan Jaya, which is located in the Islamic Village, Tuminting District. This type of research uses descriptive qualitative research. Methods of collecting data with interviews and documentation. The results of the study show that applying target costing can reduce costs and increase profit. In implementation of application of target costing, the costs incurred has decreased between costs incurred before using target costing and the profits obtained have increased, where the desired profit of the company has been achieved, even exceeding the desired profit that company want, so that the desired profit of the company has been achived. The company should be able to implement target costing, because it is considered more efficient and able to minimize costs so that the profits obtained will increase, the company also needs to make financial reports and do filing for proof of transactions so that the costs incurred can be controlled properly.