Perspektif Vol XII NO. 1, MARET 2014, ISSN:1411-8637
Currenly manufacturing industry is very competitive. Manufacturing companies produce their
products with purpose to obtaining a maximum profits. Providing quality products to their
customers in compete prices but still contributes a significant profit for the company. In
manufacturing company, profit is influenced by selling price and cost of production. Cost of
production is consist of material cost, labour cost, overhead cost, marketing and administration
cost. Inaccuracies in calculating cost of production can mistakes in determining of selling price.
Cost of production will ascendant to desired profit that acquired of selling price. Manufacturing
companies produce their products through mass production, it will collect their costs to use
process cost method. By using process cost method will known how much cost of production used
so that can calcutaled the selling price as base on to earn desired profit.
cost of production, selling price, profit, process cost method