Analysis of Implementation Cost Plus Pricing Method in the Decision on the Determination of Product Sales Prices

Abstract

The selling price of a product needs to be set, intended for profit achievement. The selling price of a product influences the competitive position of the market, which will affect the volume of production. It can be said that the selling price influences the company's revenue and net profit. This research aims to analyze the implementation of the cost plus pricing method to determine the selling price of products at cigarette companies listed by the Indonesia Stock Exchange. This research is a descriptive research. Researcher used purposive sampling to determine the sample of this research; there are 2 cigarette companies that met with the criteria explained. Therefore, the objects of this research are PT. Gudang Garam Tbk and PT. Hanjaya Mandala Sampoerna Tbk. The data analysis technique used in this research is the descriptive method with qualitative approach. The research result showed that cost plus pricing method is proper to determine the selling price of products at PT. Gudang Garam Tbk and PT. Hanjaya Mandala Sampoerna Tbk. Calculating the product selling price using variable approach is superior than full costing approach because it produces a low selling price, and the company still obtains the profit expected by the company above the costs incurred in producing its products, moreover the company can still compete with other companies that produce similar products. The limitation of this research is cost plus pricing method. The author hopes that the result can be used as an input for PT. Gudang Garam Tbk and PT. Hanjaya Mandala Sampoerna Tbk management in making the decision in determining the selling price of its products. For other parties who wish to conduct studies in the same field, it is hoped that they can also add the methods of calculating the selling prices of other products as well as the number of companies studied.