Training and Assistance in Calculating Cost of Goods Manufactured Using the Activity Based Costing Method for MSMEs in Kediri District

Kediri, October 30, 2023 – The Faculty of Economics and Business of Universitas Brawijaya with its community service activities is back to provide support and capacity building to Micro, Small, and Medium Enterprises (MSMEs) in Kediri Regency. This time, the focus of the community service program is to provide training and assistance in calculating the cost of goods produced to three local MSMEs, namely “Gazebo Krispi,” “Kripik Khadafi,” and “De-Ulan.”

These three MSMEs have culinary businesses that focus on snacks, such as chips and cookies, which have won many fans from various circles. Although their products are selling well in the market, they still face a problem that is often experienced by many MSMEs, which is a lack of understanding about the calculation of cost of goods produced.

In the initial communication with the MSME owners, it was revealed that they have difficulties in calculating the cost of production of their products. As a result, they often only set selling prices based on market prices without taking into account aspects of the actual production costs. This results in difficulties in calculating the actual profits they earn from their culinary business.

To overcome this problem, Dr. Dra. Andarwati and the FEB UB service team adopted the activity-based costing (ABC) method in the training provided. The trainees were taught how to calculate the cost of goods produced directly, considering the various cost components involved in the snack food production process. With this more accurate approach, it is expected that local MSMEs in Kediri District will be able to set a more correct and accurate selling price.

This activity is a real effort in supporting the growth and development of MSMEs in the region, as well as helping business actors to improve the competitiveness of their culinary products. Hopefully, with the new knowledge they have gained, MSMEs “Gazebo Krispi,” “Kripik Khadafi,” and “De-Ulan” can optimize their businesses, improve product quality, and contribute more to the development of the local economy.

This kind of mentoring and training is a positive step in supporting the growth of the MSME sector in Indonesia, which is known as the backbone of the country’s economy. Hopefully, similar programs will continue to grow and provide great benefits to MSME players throughout Indonesia.

Documentation of Service Activities and Training on Calculation of Cost of Goods Manufactured with Activity Based Costing Method in Kediri MSMEs