Abstract:
This research has the aim of explaining what the application of the target costing method is like as a form of business in minimizing production costs in order to get maximum business profits at UD. Bagong crackers. The target costing method is used in an effort to reduce the cost of production costs set by the company in obtaining the desired profit calculation. Goal costing is a method of costing and profit planning that focuses on products that take into account the manufacturing process, design before starting the product process and design in order to achieve the goal of increasing business to reduce operating expenses in the future. This research method uses qualitative research and a descriptive analysis approach. Data collection techniques used in this study are observation techniques, interview techniques and documentary techniques. From the results obtained, target costing is considered to help UD. Bagong crackers because they achieved the desired profit target, which was up from the previous result of 4% of sales and from the comparison results using the previous method, namely the value engineering process, the target costing method could help UD. Bagong crackers save as much as IDR 513,000 per production.
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