BUDGETARY PLAN: A CASE STUDY OF P.T. “X”, A CARPET MANUFACTURER

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BUDGETARY PLAN: A CASE STUDY OF P.T. “X”, A CARPET MANUFACTURER

By

KALELANA MAHAN PURUSATAMA 13411086

BACHELOR’S DEGREE in

ACCOUNTING

FACULTY OF BUSINESS ADMINISTRATION AND HUMANITIES

SWISS GERMAN UNIVERSITY EDUTOWN BSD CITY

TANGERANG 15339 INDONESIA

AUGUST 2016

Revision after the Thesis Defense on 26 July, 2016

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Kalelana Mahan Purusatama

STATEMENT BY THE AUTHOR

I hereby declare that this submission is my own work and to the best of my knowledge, it contains no material previously published or written by another person, nor material which to a substantial extent has been accepted for the award of any other degree or diploma at any educational institution, except where due acknowledgement is made in the thesis.

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Student Date

Approved by:

Ir. Nurdayadi, MSc

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Thesis Advisor Date

Prof. Eric Jos Nasution, MBA, MA, Ph.D

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Dean Date

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ABSTRACT

ANALYZING THE IMPLEMENTATION OF JOB ORDER COSTING METHOD, SELLING PRICE DECISION MAKING

AND BUDGETARY PLAN: A CASE STUDY OF P.T. “X”, A CARPET MANUFACTURER

By

Kalelana Mahan Purusatama Ir. Nurdayadi, MSc, Advisor

SWISS GERMAN UNIVERSITY

This research discusses about the cost accounting system; mainly aims at the job order costing method, selling price decision making and budgetary control of the company.

This research was conducted at a local carpet manufacturer of P.T. “X” that produces custom made carpets. Information data is collected through an interview with the related person in charge of accounting and production of the company followed by field observation; and then analyzed using a descriptive qualitative analysis methodology.

Analysis results show that the company has complied with accounting rules in calculating and allocating the direct cost but not in the case of the indirect cost. Selling price decision making is based on cost-based pricing with 20% to 25% of profit margin. The company does not have a budgetary control and it does not have the Standard Operating Procedure or SOP in the accounting process.

Keywords: Cost accounting system, job order costing method, budgetary control, direct cost, indirect cost, standard operating procedure.

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DEDICATION

I dedicate this thesis to my beloved parents, Sarjono Basuki and Dewi Cahyaningrum, my younger sister Pinto Rasika Tasdyata, all my friends on SGU, God Almighty and last but not least, Ir. Nurdayadi, MSc, as my thesis advisor and those people who has supported me a lot in order to finish this thesis and help me to graduate this bachelor degree from Swiss German University.

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ACKNOWLEDGMENTS

First of all, I am very glad to be grateful to Allah SWT for the good health and well being to complete this thesis.

I would like to express my deep sincere thanks to Ir. Nurdayadi, MSc, as my thesis advisor. I want to thank him for all his knowledge, patience, comments, and advises that are really useful to support me for my thesis. I am very grateful to have him and I am superbly thankful to him for the sincere and valuable guidance and encouragement in writing this thesis.

I am also thankful to the employees of P.T. “X”, for supporting me with necessary facilities and data support this research.

I take this opportunity to express my gratitude to all the lecturers that have been teaching me for the four years in Swiss German University, my parents; Sarjono Basuki and Dewi Cahyaningrum and my sister Pinto Rasika T. who supported me during my years of study and process of writing this thesis.

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BUDGETARY PLAN: A CASE STUDY OF P.T. “X”, A CARPET MANUFACTURER