Analysis of the Determination of Standard and Actual Raw Material Cost Calculations at PT Cipta Frima


  • Moh. Nasrul Setiawan Adam Digital Bussiness, Faculty Science and Computer Science, Universitas Muhammadiyah Gorontalo, Gorontalo, Indonesia



Standard Cost, Actual Cost, Cost Control


This study aims to evaluate whether Cipta Frima Jaya company uses standard and actual costing in its activities, and whether it affects the company's profitability. Using a descriptive approach, this research will analyze the implementation and influence of standard and actual costs on the company's operations. The descriptive method in this study will include data collection related to standard and actual costing carried out by the company. The data may include information on how standard costs are set, how actual costs are monitored and recorded, and how comparisons between standard and actual costs are made. The analysis process will involve a comparison between standard and actual costs to evaluate the extent to which Cipta Frima Jaya company implements effective cost control practices. If there is a significant difference between standard and actual costs, the cause and impact on the company's profitability will be analyzed. The results of the analysis will provide an understanding of the effectiveness of standard and actual costing in controlling the company's production costs, as well as its impact on the company's overall financial performance. This information can be the basis for recommendations for improvement or improvement in cost management and decision making at Cipta Frima Jaya company. For the purpose of support PT Cipta Frima Jaya in these three areas, this research may subsequently be used for analysis to examine standard costs, actual costs, and cost control inside the organization. This study might also serve as a summary for other businesses looking to implement similar standards for effective management


M. T. Scholar, P. Nathani, and H. Praveen Patidar, “Productivity Improvement in Manufacturing Industry using Industrial Engineering Tools.”

GAO U.S Government, “COST ESTIMATING AND ASSESSMENT GUIDE Best Practices for Developing and Managing Program Costs,” 2020.

Teoh Choon Hung and Jaya Kumar Shanmugam, “The Relevance of Standard Costing and Variance Analysis in Global Industries Today,” East Asian Journal of Multidisciplinary Research, vol. 2, no. 2, pp. 525–542, Feb. 2023, doi: 10.55927/eajmr.v2i2.2840.

A. H. Amin, Y. Sukma Saputri, E. Susilowati, and D. Suhartini, “Target Costing as a Production Cost Control Tool,” 2023.

A. Musfitria, M. Iswandi, W. Djamaa, R. Bakti, and R. Eldianson, “Analysis of the Role of Standard Costs in Increasing Production Cost Efficiency: A Case Study of PT. XYZ,” 2023.

E. Bez and S. -Algérie, “Performance Measurement: Quality, Cost, and Time Is New System: So Called Strategic Cost Management Sahri Elyazid enseignant universitaire, maitre assistant, faculté de gestion et économie, Pole universitaire,” Online, 2016. [Online]. Available:

Q. Yaser Saleh, M. Barakat AL-Nimer, and S. S. Abbadi, “The quality of cost accounting systems in manufacturing firms: A literature review,” Cogent Business and Management, vol. 10, no. 1. Cogent OA, 2023. doi: 10.1080/23311975.2023.2209980.

D. Settembre-Blundo, R. González-Sánchez, S. Medina-Salgado, and F. E. García-Muiña, “Flexibility and Resilience in Corporate Decision Making: A New Sustainability-Based Risk Management System in Uncertain Times,” Global Journal of Flexible Systems Management, vol. 22, pp. 107–132, Dec. 2021, doi: 10.1007/s40171-021-00277-7.

Y. Tu and W. Wu, “How does green innovation improve enterprises’ competitive advantage? The role of organizational learning,” Sustain Prod Consum, vol. 26, pp. 504–516, Apr. 2021, doi: 10.1016/j.spc.2020.12.031.

I. Farida and D. Setiawan, “Business Strategies and Competitive Advantage: The Role of Performance and Innovation,” Journal of Open Innovation: Technology, Market, and Complexity, vol. 8, no. 3, Sep. 2022, doi: 10.3390/joitmc8030163.


E. Gogo Erasmus, “Cost Management Practice and Financial Performance of Listed Deposit Money Banks in Nigeria,” Journal of Accounting and Financial Management E, [Online]. Available:

F. Hu et al., “Development of fisheries in China,” Reproduction and Breeding, vol. 1, no. 1. KeAi Communications Co., pp. 64–79, Mar. 01, 2021. doi: 10.1016/j.repbre.2021.03.003.

O. A. Alghamdi and G. Agag, “Competitive advantage: A longitudinal analysis of the roles of data-driven innovation capabilities, marketing agility, and market turbulence,” Journal of Retailing and Consumer Services, vol. 76, Jan. 2024, doi: 10.1016/j.jretconser.2023.103547.

H. B. Christensen, L. Hail, and C. Leuz, “Mandatory CSR and sustainability reporting: economic analysis and literature review,” Review of Accounting Studies, vol. 26, no. 3, pp. 1176–1248, Sep. 2021, doi: 10.1007/s11142-021-09609-5.

Sugiyono, Metode Penelitian. 2018.




How to Cite

Adam, M. N. S. (2024). Analysis of the Determination of Standard and Actual Raw Material Cost Calculations at PT Cipta Frima. Athena: Journal of Social, Culture and Society, 2(2), 325–331.