Cost Reduction Strategy In Manufacturing Industries Empirical Evidence From Indonesia

Rien Agustin Fadjarenie; Citra Rachmadani; Deden Tarmidi

doi:10.24912/ja.v28i1.1747

Authors

Rien Agustin Fadjarenie Department of Accounting, Faculty of Economic and Business, Universitas Mercu Buana, Jakarta, Indonesia
Citra Rachmadani Department of Accounting, Faculty of Economic and Business, Universitas Mercu Buana, Jakarta, Indonesia
Deden Tarmidi Department of Accounting, Faculty of Economic and Business, Universitas Mercu Buana, Jakarta, Indonesia

DOI:

https://doi.org/10.24912/ja.v28i1.1747

Keywords: Material Flow Cost Accounting; Non-Product Output; Cost Reduction; Manufacturing; Sustainability.

Abstract

The COVID-19 pandemic has forced manufacturing industries to be efficient in multiple fields. This study examines the effect of raw material management using Material Flow Cost Accounting and waste cost for Non-Product Output cost on implementing cost reduction strategies. Data was gathered by analyzing annual financial reports as well as sustainability reports. The study finds that organizations can reach efficiency by managing the cost of the raw materials using Material Flow Cost Accounting and Non-Product Output costs when implementing a cost reduction strategy. The research contributes to developing the concept of cost reduction through the Environmental Management Accounting approach, which is still rare in this field, in addition to the traditional method of cost accounting that organizations have carried out to achieve cost efficiency.

Author Biographies

Rien Agustin Fadjarenie, Department of Accounting, Faculty of Economic and Business, Universitas Mercu Buana, Jakarta, Indonesia

agustin.fadjarenie@mercubuana.ac.id

Citra Rachmadani, Department of Accounting, Faculty of Economic and Business, Universitas Mercu Buana, Jakarta, Indonesia

citradania@gmail.com

Deden Tarmidi, Department of Accounting, Faculty of Economic and Business, Universitas Mercu Buana, Jakarta, Indonesia

deden.tarmidi@mercubuana.ac.id

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