Manajemen Accounting Strategy in Determining Selling Princes Based on the Target Costing Method to Increase the Profitability of Distributor Company : A Study at PT. Prima Makmur Sidoarjo

Strategi Akuntansi Manajemen Dalam Menentukan Harga Jual Berbasis Metode Target Costing Untuk Meningkatkan Profitabilitas Perusahaan Distributor : Studi Pada PT. Prima Makmur Sidoarjo

Abstract

This study aims to analyze a management accounting strategy for determining selling prices based on the target costing method to enhance profitability at PT Prima Makmur Sidoarjo. The research employs a qualitative approach using Interpretative Phenomenological Analysis (IPA). Data were gathered through in-depth interviews, observations, document analysis involving company executives, finance manager, marketing manager, and management accounting experts. The findings indicate that the company tends to rely on traditional pricing methods-adding a margin to the purchase price and adjusting for prevailing market conditions. While this approach maintains competitiveness, cost management remains insufficiently structured, posing a risk to the achievement of profit targets. The implementation of the target costing method reveals opportunities to improve cost efficiency through more systematic cost monitoring, more effective cost planning, enhanced inter-departmental collaboration. The study concludes that target costing can serve as a management accounting strategy that supports competitive pricing while sustainably boosting the company's profitability.