A Study on the Implementation of Production Cost Pricing Strategies for Silk Yarn in Wajo Regency

The choice of costing method in the silk yarn textile industry hinges on specific objectives. Full costing provides a comprehensive view of total costs, while variable costing focuses on direct costs related to production volume. This research aims to examine production cost determination and pricing strategies, considering the significant impact of raw material costs. A quantitative and qualitative study was conducted to analyze factors influencing production costs. Observations and interviews with producers identified cost components, and process costing was used to calculate costs. Findings reveal that full costing offers a more complete picture of total costs, including both variable and fixed costs. Variable costing, on the other hand, focuses on variable costs, leading to lower unit costs but excluding fixed costs. To manage raw material costs and ensure competitive pricing, producers must carefully consider various strategies. Adaptability is crucial for the silk yarn industry in Wajo to navigate the dynamic challenges of raw material costs and successfully determine pricing strategies in A Study on the Implementation of Production Cost Pricing Strategies for Silk Yarn in Wajo Regency.