ANALISIS PENDEKATAN TARGET COSTING SEBAGAI ALAT PENILAIAN EFISIENSI PRODUKSI PEMBUATAN PAVING BLOCK PADA UD. BINA KARYA

ABSTRACT Dwi, Aprilia Sari, 2018. Analysis Of Target Costing Approaches As A Tool For Assessing The Efficiency Of Production Costs For Paving Production At UD. Bina Karya. Description / final project, Accounting Study Program, Faculty of Economics, Majapahit Islamic University (UNIM). Advisor I : Hari Setiono, SE., M.Si Advisor II : Toto Heru Dwihandoko., SE., MM., Ak., CA Micro, Small and Medium Enterprises are one of the economic drivers of the people in various countries including Indonesia. One of the challenges for Micro, Small and Medium Enterprises is to determine the selling price. Micro, Small and Medium Enterprises also need to pay attention to the determination of selling prices in addition to hard and tight competition in order to generate profits. Micro, Small and Medium Enterprises also need to pay attention to the costs incurred in their production. This study aims to help companies to implement the target costing method as a management tool in reducing production costs. The target costing method is an effective method of reducing production costs through evaluating product value (value engineering). This study uses descriptive quantitative methods. The results of this study indicate that the target costing approach at UD. Bina Karya is more efficient than the standard method, with the target costing approach the company can obtain a cost savings of Rp 1,044,000. the impact on gross profit obtained by the company if previously the company used the standard method of profit obtained greater whereas for the target costing method the profit obtained was lower. Keywords: Target Costing, Value Engineering, Production Costs