The research was published in the Formosa Journal of Multidisciplinary Research (FJMR) in 2026 and examined the production and pricing practices of Sf’Barik, a local SME located in Beong Village, Central Siau District, Sitaro Islands Regency, North Sulawesi, Indonesia. The study is significant because many SMEs across Indonesia continue to set product prices without fully understanding their actual production costs, potentially affecting profitability and long-term growth.
Local Nutmeg Wine with Cultural and Religious Significance
Sf’Barik, formerly known as Sari Fruit, was established in 2018 and specializes in products derived from local nutmeg and walnut resources. Its product portfolio includes nutmeg syrup, nutmeg jam, candied nutmeg, nutmeg coffee, and nutmeg wine.
Among these products, nutmeg wine has become one of the company's flagship offerings. Beyond its commercial value, the product also carries cultural and religious significance because it is used in Holy Communion services in several churches within the region.
The company currently produces approximately 200 bottles of nutmeg wine per month and sells each bottle for around IDR 60,000. Until now, however, pricing decisions have largely been based on market observations and managerial estimates rather than detailed accounting calculations.
According to the researchers, this approach may expose businesses to hidden costs, inaccurate profit measurements, and inefficient pricing strategies.
How the Research Was Conducted
The researchers used a qualitative case-study approach focused exclusively on Sf’Barik. Data were collected through interviews with business owner Hanris Barik, observations of production activities, and analysis of company financial records and production documents.
Rather than using complex financial models, the researchers applied two widely recognized managerial accounting tools:
- Full Costing, which includes all production costs in product cost calculations.
- Cost-Plus Pricing, which determines a selling price by adding a profit margin to the calculated production cost.
This approach allowed the research team to identify the actual cost of producing nutmeg wine and compare it with the company's existing pricing strategy.
Production Costs Revealed
The study found that the total production cost for one batch of nutmeg wine consists of three major components:
- Raw materials and packaging: IDR 2,260,000
- Direct labor: IDR 4,500,000
- Manufacturing overhead and equipment depreciation: IDR 581,500
These expenses result in a total production cost of IDR 7,911,500 for a batch of 200 bottles.
Based on these figures, the actual cost of producing one bottle of nutmeg wine is IDR 39,557.
One of the most important findings was the inclusion of equipment depreciation in the cost calculation. The study showed that production equipment worth IDR 11.63 million contributes significantly to production expenses over time and should be accounted for when determining product prices.
Without considering depreciation, businesses may underestimate their true production costs and make pricing decisions based on incomplete financial information.
The Ideal Selling Price
After calculating the production cost per bottle, the researchers applied the Cost-Plus Pricing method using a 30 percent markup, a level considered appropriate for maintaining profitability while remaining competitive in the local market.
The calculation produced the following results:
- Production cost per bottle: IDR 39,557
- 30% markup: IDR 11,867
- Recommended selling price: IDR 51,424
The recommended price is lower than Sf’Barik’s current market price of IDR 60,000 per bottle.
This creates a difference of IDR 8,576 per bottle.
Given an average production volume of 200 bottles per cycle, the company earns approximately IDR 1.7 million in additional profit beyond the standard 30 percent markup.
Why Consumers Still Accept the Higher Price
Although the current selling price exceeds the price calculated through accounting methods, the study found that consumers continue to purchase the product.
The researchers attribute this to several factors:
- Consistent product quality
- Natural fermentation processes
- Strong local identity
- Cultural and religious value attached to the product
- Limited competition in the niche market segment
As a result, Sf’Barik appears to be practicing a form of market-based pricing, where customer perception and product value influence pricing decisions alongside production costs.
According to Bawonte and her colleagues at Sam Ratulangi University, understanding actual production costs remains essential even when products successfully command higher market prices.
The researchers emphasize that accurate cost information helps business owners evaluate efficiency, monitor profitability, and make better strategic decisions regarding expansion, investment, and pricing.
Implications for SMEs and Policymakers
The findings provide practical lessons for SMEs throughout Indonesia and other developing economies.
Many small businesses still determine prices based on intuition or competitor pricing rather than detailed cost calculations. While this approach may work in some cases, it often makes it difficult to measure real profitability or identify inefficiencies.
The study demonstrates that Full Costing can provide a more complete picture of production expenses, while Cost-Plus Pricing offers a systematic method for establishing sustainable selling prices.
For government agencies, business incubators, and SME support organizations, the research highlights the importance of improving financial literacy and managerial accounting skills among entrepreneurs.
More accurate pricing practices can help SMEs strengthen competitiveness, improve cash flow management, and support long-term business growth.
As the authors note, integrating structured cost-accounting methods into everyday business operations can help local enterprises make more informed decisions while preserving the value of unique regional products such as nutmeg wine from the Sitaro Islands.
Author Profiles
Meini Vanesa Bawonte is a researcher in Accounting at Sam Ratulangi University, Indonesia. Her academic interests include cost accounting, managerial accounting, SME development, and business financial management.
She conducted this study with:
Jullie Sondakh, an accounting scholar and researcher at Sam Ratulangi University specializing in managerial accounting, financial analysis, and organizational performance.
I Gede Suwetja, a lecturer and researcher at Sam Ratulangi University whose expertise includes cost accounting, management control systems, and SME financial sustainability.
Source
Article Title: Implementation of the Full Costing Method Based on Cost-Plus Pricing in Determining Cost of Goods Sold and Selling Price at Sf’barik in Beong Village, Central Siau District
Authors: Meini Vanesa Bawonte, Jullie Sondakh, I Gede Suwetja
Journal: Formosa Journal of Multidisciplinary Research (FJMR)
Year: 2026
Volume: 5(5)
DOI: https://doi.org/10.55927/fjmr.v5i5.74
Affiliation: Sam Ratulangi University, Indonesia
0 Komentar