Production Cost Control Through Variance Analysis: Evidence from PT Kalimantan Concrete Engineering Indonesia
DOI:
https://doi.org/10.31961/ijaaf.v5i2.15531Keywords:
Control, Cost Variance, Overhead Cost Variance, Production Costs, Variance AnalysisAbstract
This study aims to identify and analyze the production cost budget as a control tool used to manage production costs at PT Kalimantan Concrete Engineering Banjarmasin by comparing the company’s budgeted production costs with actual production costs at the end of the period and conducting variance analysis on the deviations. This research employs a quantitative research approach. The data used in this study consist of production cost data from the company’s work plan and budget, as well as their realizations. Data collection techniques included direct case study field observations and literature review. The data analysis method applied in this study is descriptive analysis, which comprehensively describes the data obtained during the research process. The calculation methods used include variance analysis of direct material costs, direct labor cost variances (variance one, variance two, and variance three), and factory overhead cost variance (variance one). The conceptual framework of this study focuses on production cost budgeting, production costs, variance analysis, and deviation analysis (variance analysis) of direct material costs, direct labor costs, and factory overhead costs. The results of this study indicate that the production cost budget used as a production cost control tool at PT Kalimantan Concrete Engineering has not functioned optimally, as unfavorable variances are still observed. The overall cost variance in 2022 was favorable, amounting to Rp 25,782,095,189, while the overall cost variance in 2023 was unfavorable, amounting to Rp 9,383,538,032.
Downloads
References
Abdullah, K., Jannah, M., Aiman, U., Hasda, S., Fadilla, Z., Taqwin, Masita, Ardiawan, K. N., & Sari., M. E. (2022). Metodologi Penelitian Kuantitatif Metodologi Penelitian Kuantitatif. In Metodologi Penelitian Kuantitatif (Issue May).
Amin, A. H., Saputri, Y. S., Susilowati, E., & Suhartini, D. (2023). Target Costing as a Production Cost Control Tool. Proceedings of International Conference on Economics Business and Government Challenges, 6(1), 35–45. https://doi.org/10.33005/icebgc.v6i1.52.
Dandago, K. C. I., & Adah, A. (2013). The Relevance of Variance Analysis in Managerial Cost. Journal of Finance and Investment Analysis, 2(1), 2241–0996.
Hanum, Z., & Farhan, M. (2019). Analisis Fungsi Anggaran Biaya Sebagai Alat Pengawasan Pada Perum Perumnas Regional 1 Medan. Prosiding FRIMA (Festival Riset Ilmiah Manajemen dan Akuntansi), 2, 7–15. https://doi.org/10.55916/frima.v0i2.10.
Iqbal, M., Rachman, D., & Rodiah, S. (2021). Pengaruh Rencana Anggaran dan Realisasi Anggaran Pendapatan dan Belanja Daerah (APBD) terhadap Kinerja Keuangan Pemerintah Daerah pada Badan Keuangan dan Aset Daerah. AKURAT Jurnal Ilmiah Akuntansi, 12(2), 18–34.
Olatunji, I. O., Gideon, A., & Olalekan, A. (2025). Variance Analysis and Operational Performance of Listed Manufacturing Firms in Nigeria. IOSR Journal of Business and Management, 27(6), 01–11. https://doi.org/10.9790/487x-2706090111.
Panigrahi, S., Al Ghafri, K. K., Al Alyani, W. R., Ali Khan, M. W., Al Madhagy, T., & Khan, A. (2023). Lean manufacturing practices for operational and business performance: A PLS-SEM modeling analysis. International Journal of Engineering Business Management, 15, 1–16. https://doi.org/10.1177/18479790221147864.
Monteiro, P., A., Vale, J., Leite, E., Lis, M., & Kurowska-Pysz, J. (2022). The impact of information systems and non-financial information on company success. International Journal of Accounting Information Systems, 45(April 2021), 100557. https://doi.org/10.1016/j.accinf.2022.100557.
Petropoulos, F., Akkermans, H., Aksin, O. Z., Ali, I., Babai, M. Z., Barbosa-Povoa, A., Battaïa, O., Besiou, M., Boysen, N., Brammer, S., Brandon-Jones, A., Briskorn, D., Browning, T. R., Buijs, P., Centobelli, P., Chiarini, A., Cousins, P., Cudney, E. A., Davies, A., … Zheng, T. (2026). Operations & supply chain management: principles and practice. International Journal of Production Research, 64(1), 330–513. https://doi.org/10.1080/00207543.2025.2555531.
Suhidayat, T., Ravitilova, R., Handayani, A., & Daniel Tambunan, F. W. (2023). Optimizing Cost Management in Dynamic Business Environments: An In-depth Analysis of Production Cost Budgeting, Considering Specific Elements and External Factors. Jurnal Audit, Pajak, Akuntansi Publik (AJIB), 2(2), 106. https://doi.org/10.32897/ajib.2023.2.2.3238.
Suryana, I. V., & Mildawati, T. (2021). Analisis Varians Biaya Produksi Gula untuk Mengukur Efisiensi Pabrik Gula (Studi Kasus PG Wonolangan PT Perkebunan Nusantara XI) Sekolah Tinggi Ilmu Ekonomi Indonesia (STIESIA) Surabaya. Jurnal Ilmu dan Riset Akuntansi, 10. http://jurnalmahasiswa.stiesia.ac.id/index.php/jira/article/view/4173.
Teoh, C. H., & Shanmugam, J.K. (2023). The Relevance of Standard Costing and Variance Analysis in Global Industries Today. East Asian Journal of Multidisciplinary Research (EAJMR), 9. East Asian Journal of Multidisciplinary Research, 2(2), 525–542.
Thuong, C. Van. (2025). The Role of Budget Planning and Control with the Mediating Effect of the Budget Process on Firm Performance. Advances in Consumer Research, 2(4), 1753–1762. https://acr-journal.com.
Wahyul. (2019). Analisis Varians Anggaran Pendapatan dan Biaya Usaha Pengrajin Sepatu Tempahan “Tikko” Medan. Jurnal Ilmiah Simantek, 3(2), 6– 18.
Zhou, F., Liu, Y., Triwannakij, S., & Triatmanto, B. (2025). Strategic Budgeting and Budgeting Evaluation Effects on China’s Manufacturing Companies’ Performance. Journal of Risk and Financial Management, 18(4). https://doi.org/10.3390/jrfm18040172.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Risha Zuraida, Noor Safrina, Rizky Amelia, Hikmahwati, Julkawait, Aguila Mark Gabriel Wagan
This work is licensed under a Creative Commons Attribution 4.0 International License.
