Analisis Penerapan Target Costing sebagai Alat Bantu Perencanaan Biaya pada UMKM Kebab Batubara

Target Costing is a system where the determination of the cost of goods products is in accordance with the desired (target) as the basis for determining the selling price of products that will obtain the desired profit. The main benefit of Target Costing is the determination of the cost of goods as a basis for pricing so that the desired profit target will be achieved. The purpose of this study is to analyze the implementation of Target Costing to reduce production costs so that MSME operating profits can be increased. This research was carried out at MSMEs Kebab Batubara Sangatta East Kutai. The type of research used is qualitative descriptive. The method of data collection is by interviews and documentation. The results showed that by implementing Target Costing can reduce production costs incurred and profits obtained increased. Where before implementing Target Costing, production costs incurred amounted to IDR 6,771,500, but after applying the concept of Target Costing, production costs can be reduced to IDR 7,883,583.33, as for greater expenses due to previous business actors/MSMEs there was no calculation of overhead costs in the production cost settlement. As for applying the Target Costing method because it has been proven to be able to help minimize production costs so that profit generation can be increased.