Analysis of Target Costing Implementation in Efforts to Increase Production Cost Efficiency to Increase Profit Contribution (Case Study at Denyu Shoes Kediri)

Abstrak

Denyu Shoes Kediri is a company engaged in manufacturing. This study aims to analyze that target costing can be used as a tool for production cost efficiency to increase profit contribution at Denyu Shoes Kediri. Target costing is defined as determining the expected cost of a product based on competitive prices, target costing is more systematically and effectively profitable when applied in optimal planning. This study is a quantitative descriptive study, where in the research process it requires data in the form of numbers or existing findings so that later it can be explained and concluded from the actual situation. With the target costing analysis, it shows that the production cost according to the company is IDR 148,140,000, while according to target costing it is IDR 127,760,000. These results show that by implementing target costing the company can make costs more efficient by 15.95% and increase profits by a difference of IDR 20,380,000 for 2023.