Analysis of The Determination of the Cost of Production of Msmes in The Business Unit Beranda Café

Abstract

This research analyzes the determination of the cost of production (HPP) at Beranda Café, a culinary MSME by comparing the simple method used by the café with the full costing method. Using a qualitative descriptive approach, this research reveals that Beranda Café calculates COGS simply without including all cost components, especially equipment depreciation costs. The research results show that there is a difference of Rp. 176 per unit between the café calculation (Rp. 18,264) and the full costing method (Rp. 18,440) for production of 5000 portions per month. This difference is caused by the full costing method which includes all overhead costs, both variable and fixed. Even though it produces higher COGS, the full costing method is considered more in line with generally accepted accounting principles and provides more complete information for determining selling prices and increasing profits. This research highlights the importance of better understanding the determination of COGS for MSMEs to optimize financial performance and business competitiveness.