PENERAPAN BIAYA STANDAR SEBAGAI ALAT PENGENDALIAN BIAYA PRODUKSI PADA FARA COLLECTION

The purpose of this study is to explain the implementation of standard cost as the production cost control instrument toward Fara Collection. In this study, the researcher used descriptive method which is intended to give detail and systematical description toward the use of the standard cost which is applied in the business including raw material, labor, and factory overhead cost by using the difference of analysis and to illustrate the cause of difference; both profitable and profitless. The result of this study indicated that the implementation of standard cost as the production cost control instrument toward Fara Collection using the determination of standard cost and the real cost is implemented by emphasizing both cost using the difference of analysis; toward the raw material, labor, and factory overhead cost, in which the difference of cost was used to control the production cost. Based on the result of the study, it can be concluded that calculation and cost analysis from2011 to 2012 showed that profitable difference total happened to the raw material and factory overhead cost and the profitless difference total happened to the labor cost. It revealed that the standard cost as the control instrument could be implemented toward the raw material and factory overhead cost because it was profitable; in which the standard cost was bigger than the real cost.