Perpustakaan Digital ITB

Agricultural industry has a great opportunity in market nowadays. The tea industry in Indonesia however, has facing a tight competition whether from the domestic market and from international market. To face the challenge, the company could do some action or some evaluation of their performance or efficiency. This evaluation are going to be objected on one of the agriculture state own company in Bandung, Indonesia which is PTPN VIII. PTPN VIII has large unit of activity which they also contribute to 80% consumption of tea in whole Indonesia. With the area of coverage and demand to accomplished that large, PTPN VIII should have realized that they need to answer the challenge quickly. This project purpose is to find which part of the company from accounting point of view that can be used to analyze the effectiveness of costing system in PTPN VIII which this company has tea commodity as one of their product line. The object of the research is the two methods that company uses to produce tea. The methods are orthodox which is a traditional way in processing the tea and CTC (Crush, Tear, Curl) where using machinery. Researcher using three approaches. First, by using value chain to see how the company operates that occurring cost. The first step is useful to see what the activities of tea industry are so that researchers know what should be analyzed and activity of the producing tea. Second is by using Variance Analysis where this analysis is useful to see whether the company has using their cost effectively looking from the difference between the actual costs that the company spent, comparing with company plan of expense for making the products or budgeting. Last one is cost driver where then we can conclude which and where the company could improve their efficiency in cost field. Researcher compare using regression to see whether the production cost of orthodox process or from CTC process that contribute the profit larger based on selling price. The answer for the problems is to see from different perspectives which are the cost of production that using the budget efficiently and in which method of the production that actually brings negative effect to the company profitability. Later turns out that the part that over budgeted the company expense is from CTC factory. This means that from CTC way of producing factory however are not efficient and the side that makes the CTC factory over budget is from the overhead section. The assumption is because of the use of machinery. Then on 2006, the production that affect negative to the price is from Orthodox production which this situation are changed in 2007 becomes the positive affect. What happened to the CTC production was on 2006, the production affect positively to the company while on 2007, the production did otherwise.