Comparative Analysis of the Wooden House Production Principal Cost Calculation Using the Full Costing and Variable Costing Method

DOI

10.2991/assehr.k.200813.037How to use a DOI?

Keywords

full costing methods, variable costing methods

Abstract

The study aims to determine differences in the calculating of the principal cost of production of two types of wooden houses using two methods: full costing and variable costing methods. Their comparison can be used as a basis for determining the selling price of the product and the relevant production principal cost method. Starting from the cost of raw material, labour cost and other costs that are included in the element of wooden house production (overhead cost). This study uses a qualitative descriptive method that describes and explains the various data obtained by the researchers both quantitative and qualitative data. The results indicate that the calculation using full costing method is greater which is Rp. 703.250 when compared to calculation with the other method for both types of wooden houses. These results show a small difference between them. It is in the form of fixed overhead costs which are not charged to production principal cost using variable costing method. Of these two methods, the variable costing method is more relevant because the cost of the product is lower than that of full costing method. These result can give the producers good information for choosing the better calculation method.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Anie V. Mundung
AU  - Anthonius A. Tandi
AU  - Farida I. S. Wakidin
AU  - Esrie A. N. Limpeleh
AU  - Barno Sungkowo
PY  - 2020
DA  - 2020/08/13
TI  - Comparative Analysis of the Wooden House Production Principal Cost Calculation Using the Full Costing and Variable Costing Method
BT  - Proceedings of the First International Conference on Applied Science and Technology (iCAST 2018)
PB  - Atlantis Press
SP  - 165
EP  - 169
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.200813.037
DO  - 10.2991/assehr.k.200813.037
ID  - Mundung2020
ER  -