Optimizing Cost Management in Dynamic Business Environments: An In-depth Analysis of Production Cost Budgeting, Considering Specific Elements and External Factors


  • Tatang Suhidayat Universitas Sangga Buana
  • Ravitilova Ravitilova Universitas Padjajaran
  • Ai Handayani STAN IM
  • Fransisco Wanviano Daniel Tambunan STAN IM




Production cost budget, Production cost management, Operational efficiency, Budget analysis


This research discusses the effectiveness of using budgets as a means of controlling production costs at PT. Sari Tuna Makmur in the 2017-2021 period. By examining the budget and realization of direct labor costs (salary costs), factory overhead costs, as well as differences in budgeted tuna production costs, this research aims to identify factors that influence variations between budget and realization. The research results show that the company is generally successful in controlling production costs. Although there are variations in direct labor costs during the COVID-19 pandemic, PT. Sari Tuna Makmur was able to achieve production costs that were lower than the budget in previous years. Internal factors such as business policies, production capacity, and production facilities, as well as external factors such as competition and consumer demand, play an important role in successful cost control. However, special challenges arise during the pandemic, where the decision not to reduce the workforce may result in direct labor cost deviations. Therefore, this research recommends increasing the accuracy of budget preparation and more detailed attention to factors that influence production costs, especially in unexpected situations. This research contributes to the understanding of production cost control strategies amidst the dynamics of the business environment. The practical implication is the need for companies to continue to optimize cost control strategies, consider changes in external conditions, and increase accuracy in preparing budgets to maintain the company's operational and financial sustainability.

Author Biographies

Tatang Suhidayat, Universitas Sangga Buana

Accountancy, Master of Accounting

Ravitilova Ravitilova, Universitas Padjajaran

Digital Marketing, Faculty of Economics and Business

Ai Handayani, STAN IM

Accountancy, Faculty of Economics and Business

Fransisco Wanviano Daniel Tambunan, STAN IM

Management, Faculty of Economics and Business


Renaningtyas Ar, Marunda A, Permatasari E, Davala J, Sari Ns, Fikri Sn. Factors That Influence Budget Planning And Control For Trading Companies: Production Cost Budget, Production Cost Control And Cash Budget (Management Accounting Literature Review). J Multidisciplinary Science. 2022;1(1):94–109.

Ritonga M. Factors Of Cost Management And Marketing Management On Incomethrough Production Intensity In Home Industry Smes In The City Of Binjai. Friday. 2018;8(2):68–78.

Ginting R, Sagala L. Production Cost Budget Analysis As A Tool For Planning And Controlling Production Costs At Pt. Indapo Batu Rongkam. J Ilm Smart. 2019;3(1):40–6.

Sihadi Ip, Pangemanan Ss, Gamaliel H. Identification Of Constraints In The Production Process And Their Impact On Production Costs At Ud. Risky. Going Concern J Ris Akunt. 2018;13(04).

Kerap Vt, Nangoi G, Rondonuwu S. Production Cost Budget Analysis At Pt. Anping Seafood Indonesia. J Lppm Bid Ekososbudkum (Economics, Social Culture And Law). 2022;5(2):583-Â.

Miharja Sa, Santoso Ra. Production Cost Budget Analysis As A Tool To Increase The Effectiveness Of Production Cost Control At Cv Megasari Inti Sinergi. J Ilm Mhs. 2023;1(1):1–15.

Anggraini D, Yuniawati Ra, Nirwana Nka, Sugianto S, Sari Shp. Analysis Of The Effect Of Production Cost Budgets And Cash Budgets On Trading Company Planning And Control Budgets: Management Accounting Literature Review. Costing J Econ Business Account. 2023;7(1):778–85.

Sasongke Dj, Kalangi L, Mintalangi Sse. Production Cost Budget Analysis As A Tool To Increase The Effectiveness Of Production Cost Control At Pt. Sari Tuna Makmur: Indonesia. J Lppm Bid Ekososbudkum (Economics, Social Culture And Law). 2023;6(2):1297–310.

Weaver Kl, Ivester P, Chilton Ja, Wilson Md, Pandey P, Chilton Fh. The Content Of Favorable And Unfavorable Polyunsaturated Fatty Acids Found In Commonly Eaten Fish. J Am Diet Assoc. 2008;108(7):1178–85.

Akbar L, Anwar S, Afiah Na. Analysis Of Production Cost Control In Increasing Profit At Pt. Bosowa Maros Cement. Makassar Public University; 2018.

Hanif H, Mulyani M, Karya S, Brandinie M. Psychological Aspects Of Management Delegation And Cost Management Of The "Yes" Bread Factory At Upk Pik Pulo Gadung, East Jakarta. Acad Action J Community Empower. 2019;1(1):20–6.

Mariantha Hin. Cost Management: Cost Management. Vol. 1. Celebes Media Perkasa; 2018.

Arrozaaq Dlc. Collaborative Governance (Study Of Collaboration Between Stakeholders In The Development Of The Minapolitan Area In Sidoarjo Regency). Airlangga University; 2016.

Purnaya Igk, Se Sh. Human Resource Management. Andi Publisher; 2016.

Umam C. Efforts To Increase Production Cost Efficiency To Gain Competitive Advantage In The Flodista Crafts Industry. Kiai Haji Achmad Siddiq State Islamic University Jember; 2018.

Kurniawan Dw. Analysis Of Catfish Feed Management For Efficient Production Costs To Increase Sales Results. Iqtishadequity J Manaj. 2020;2(1).

Sunarsi D. Implementation Of Strategic Hrm In Efforts To Increase Organizational Capabilities In Welcoming Revolution 4.0. J Management Science, Account Economist. 2019;3(1):221–33.

Wang Z, Le Tt. The Covid-19 Pandemic's Effects On Smes And Travel Agencies: The Critical Role Of Corporate Social Responsibility. Econ Anal Policy [Internet]. 2022;76:46–58. Available From: Https://Www.Scopus.Com/Inward/Record.Uri?Eid=2-S2.0-85135686132&Doi=10.1016%2fj.Eap.2022.07.008&Partnerid=40&Md5=C64fee946be26ab1c1d39f99d50b651c

Thomson T. The Influence Of Local Taxes On The Local Own-Source Revenue Of Bandung City During The Covid-19 Pandemic. J Tax Audit, Public Accounting. 2023;2(1):29–35.

Anisa Sn, Agustin R, Santoso Ra. Budget Analysis Of Raw Material Costs In The Pia Latief Kediri Home Industry.

Hamzah C. The Role Of Preparing Production Cost Budgets In Supporting The Effectiveness Of Production Cost Control At Pt Elco Indonesia Sejahtera Garut. J Econ Discourse. 2017;16(2):63–71.