SELLING PRICE DETERMINATION BASED ON PRODUCTION COSTS IN AN MSME: A REVIEW OF ARTICLES AND THE CASE OF MAS KADE SUMEDANG TOFU FACTORY

Abstract

The determination of an appropriate selling price is an important managerial decision for micro, small, and medium enterprises (MSMEs), particularly in the food manufacturing sector, where production costs and market competition can affect business profitability and sustainability. This article reviews previous studies on managerial accounting practices, production cost calculation, and selling price determination, with particular attention to their application in tofu manufacturing MSMEs. The review draws on five journal articles addressing full costing, activity-based costing, cost structure analysis, and management accounting practices, alongside a case study of Mas Kade Sumedang Tofu Factory in Medan, Indonesia. The literature indicates that incomplete identification and allocation of production costs may result in inaccurate product cost information and selling prices that do not adequately reflect actual production expenditures. Previous studies also demonstrate that full costing and activity-based costing can provide more detailed cost information than simplified or conventional approaches, although the suitability of each method depends on the characteristics of the production process and the availability of cost data. The case study identifies several managerial challenges at Mas Kade Sumedang Tofu Factory, including limited cost documentation, fluctuations in soybean prices, and selling price decisions that rely substantially on estimated raw material costs. These conditions highlight the relevance of a systematic production cost calculation framework to support more informed pricing decisions. This article contributes to the discussion of managerial accounting in smallscale food manufacturing by connecting findings from previous studies with the operational context of a tofu-producing MSME. However, the actual production cost per unit, the appropriate selling price, and the financial benefits of implementing a particular costing method require further verification using detailed production and financial records from the business.