Analysis Of Opportunity Cost In Renting, Contracting, And Building Camp Facilities At Mr. Bob Kampung Inggris As A Strategy To Reduce Operating Costs

Abstract

This study aims to analyze the opportunity cost in renting, contracting, and building camp facilities at Mr. BOB Kampung Inggris as a strategy to reduce operating costs. The company faces problems when the high season comes, as most camp facility vendors increase their rental prices due to the significantly higher demand compared to the camp facilities available in the local area. This research using quantitative and qualitative methodology approaches. Data was collected through in-depth interviews with management and employees as well as analysis of financial statements.  The research results show that the policy of build a camp facilities is appropriate because it has the highest opportunity cost value, so  the company can save operating costs of IDR 14,324,707.83 per period, i.e. save more than 21.5%  compared to  renting policy. Contracting policy is also worth choosing as the company can save operating expenses worth IDR 13,133,343.60 per period, 20% cheaper than renting policy. Renting policies have no opportunity cost value and therefore no operating cost savings.