COMPARATIVE ANALYSIS OF SELLING PRICE DETERMINATION WITH THE COST PLUS PRICING METHOD IN MEKARSARI UMKM

This study aims to examine and compare the application of the cost plus pricing method in determining the selling price of products at Mekarsari MSMEs. As micro, small, and medium enterprises (MSMEs) play a vital role in Indonesia’s economy, establishing a fair and sustainable pricing strategy is crucial to ensure business continuity and competitiveness. The research adopts a descriptive qualitative approach using case study analysis, with data collected through documentation, observation, and interviews. The cost plus pricing method is implemented using two costing techniques: full costing and variable costing. By analyzing the costs incurred in the production process and adding a predetermined markup, this study evaluates the accuracy and feasibility of each method in real-world conditions. The findings reveal that the selling price derived through the full costing method results in a higher price than that calculated using the variable costing method. This difference is attributed to the inclusion of fixed manufacturing overhead in the full costing approach, which provides a more comprehensive reflection of total production costs. However, from a short-term decision-making perspective, variable costing may offer more flexibility for pricing strategies. The study concludes that both methods have practical advantages depending on the business context and objectives. MSMEs are advised to consider their cost structure, market conditions, and financial goals when choosing a pricing model. This research contributes to the existing literature by providing practical insight into the implementation of cost-based pricing in small-scale enterprises and highlights the importance of accurate cost classification in pricing decisions. Future research could expand the scope by including different industries or examining the impact of pricing strategies on customer satisfaction and business performance.