Abstract

The purpose of this research is to study how Target Costing implementation on managing production cost in Tape Producer Sumber Madu, in order to reach the desired proftt. The difficulties on managing cost and getting desired profit in Sumber Madu was the reason and motivation behind this research. To get all the data that needed in this research, researcher choose to do observation and interviewing the production manager and the owner of Sumber Madu. The production cost calculated by Sumber Madu and the Alternative production cost calculated by researcher, were analyzed and compared each other to know how good the Target Costing implementation in Sumber Madu. The result of this research shows that Target Costing Implementation in Sumber Madu was good and fit. Implementation of Target Costing can raise the profit earned as much as the desired profit. And then, Sumber Madu can manage the production cost on its product.

Keywords: Production Cost, Profit Target, Target Costing, Value Engineering