COST CLASSIFICATION AND COST MANAGEMENT PRACTICES IN FOOD AND BEVERAGE MSMEs IN MEDAN: A LITERATURE-BASED APPLICATION
Keywords:
Managerial Accounting, Cost Classification, Cost Management, Food and Cost Classification, Cost Behavior, Food and Beverage MSMEsAbstract
This paper reviews cost classification concepts from Garrison, Noreen, and Brewer's Managerial Accounting (16th ed.) and discusses their application to food and beverage micro, small, and medium enterprises (MSMEs) in Medan, Indonesia. Cost information is important for planning, controlling operations, determining prices, evaluating profitability, and making short-term and long-term decisions. Food and beverage MSMEs commonly incur raw material, direct labor, utilities, rent, packaging, transportation, marketing, and administrative costs, but these costs are not always classified systematically. The literature indicates that resource limitations, accounting knowledge, and incomplete overhead allocation can hinder the implementation of cost accounting practices in MSMEs. This paper uses a literature-based approach and does not claim primary field research. The discussion applies five major purposes of cost classification: assigning costs to cost objects, financial reporting, predicting cost behavior, decision making, and recognizing that the same cost can be classified differently for different purposes. A hypothetical catering example is provided only as an illustration. The review shows that a simple and consistent cost-classification system can improve cost visibility, pricing decisions, cost control, and managerial decision making in food and beverage MSMEs.References
1. Acintya, A. P. (2020). Do micro small medium enterprises (MSMEs) need modern management accounting techniques? An Indonesian perspective. Journal of Indonesian Economy and Business, 35(1). https://doi.org/10.22146/jieb.53119
2. Chandrarin, G., & Zuhroh, D. (2021). Management accounting practices in Indonesia. In Management Accounting in China and Southeast Asia: Empirical Studies on Current Practices (pp. 51–74). Springer.
3. Garrison, R. H., Noreen, E. W., & Brewer, P. C. (2018). Managerial accounting (16th ed.). McGraw-Hill Education.
4. Gustomi, R., et al. (2025). The strategic role of management accounting in improving MSME sustainability through cost control, capital structure, and HR management in the digital era. Asian Journal of Management Analytics, 4(3), 1483–1494. https://doi.org/10.55927/ajma.v4i3.14990
5. Hutahaean, et al. (2026). Analisis perhitungan harga pokok produksi dan harga pokok penjualan berdasarkan identifikasi biaya riil pada Toko Donat & Roti Jaynudin. Jurnal Akuntansi Kompetif, 9(2). https://doi.org/10.35446/akuntansikompetif.v9i2.2899
6. Husni, M., Imran, M., Ryketeng, M., & Damayanti, R. (2023). Implementation of management accounting practices in micro, small and medium enterprises (MSMEs). Proceedings of ICAME-7 2022. https://doi.org/10.2991/978-94-6463-146-3_22
7. Kaharti, E. (2023). Management accounting practices and performance on MSMEs in Indonesia. Journal of Business, Finance, and Economics, 4(1). https://doi.org/10.32585/jbfe.v4i1.3975
8. Nartey, S. N., & van der Poll, H. M. (2021). Innovative management accounting practices for sustainability of manufacturing small and medium enterprises. Environment, Development and Sustainability, 23, 18008–18039. https://doi.org/10.1007/s10668-021-01425-w
9. Pramandiri, R., Praptapa, A., & Herwiyanti, E. (2017). Using cost accounting as the basis for selling price determination: The case for Kansa Bakery. Jurnal Akuntansi, 11(1). https://doi.org/10.25170/jara.v11i1.50
10. Puryati, D. (2022). Praktik akuntansi manajemen pada usaha mikro, kecil, menengah di Indonesia. Jurnal Riset Akuntansi & Perpajakan, 9(1), 124–135. https://doi.org/10.35838/jrap.2022.009.01.10
11. Putri, D. M., & Wafaretta, V. (2022). Praktik akuntansi manajemen dan kinerja usaha mikro kerajinan di Kabupaten Bondowoso pada masa pandemi. Jurnal Ilmiah Wahana Akuntansi, 17. https://doi.org/10.21009/Wahana.17.023
12. Rachman, et al. (2024). Analysis of the accuracy of calculation of production costs and cost of products for micro businesses in the food & beverage sector. Asian Journal of Management Analytics, 3(4), 1207–1216. https://doi.org/10.55927/ajma.v3i4.11921
13. Rachmawati, D., & Tamara, D. (2022). Human capital dan kinerja UKM: Peranan praktik akuntansi manajemen sebagai pemediasi. E-Jurnal Akuntansi, 32(12). https://doi.org/10.24843/EJA.2022.v32.i12.p16
14. Rangkuty, D., Atika, & Nasution. (2025). Analysis of production cost and revenue budget to support the effectiveness of production cost control in making dimsum at Adidimsum Medan. Amkop Management Accounting Review, 5(2). https://doi.org/10.37531/amar.v5i2.2905
15. Roffia, P., Benavides, M. M., & Carrilero, A. (2024). Cost accounting practices in SMEs: Liability of age and other factors that hinder or burst its implementation in turbulent years. International Entrepreneurship and Management Journal, 20, 115–139. https://doi.org/10.1007/s11365-023-00938-2
16. Schutte, D., & Dlamini, P. (2021). The development of a management accounting framework for small and medium enterprises operating in emerging economies. Journal of Accounting, Finance and Auditing Studies, 7(3), 136–157. https://doi.org/10.32602/jafas.2021.023
17. Siregar, & Meliza. (2022). Analisis perhitungan harga pokok produksi pada Catering Dapoer Laziid (pendekatan variable costing). GEMA EKONOMI, 12(1). https://doi.org/10.55129/gemaekonomi.v12i1.2441
18. Usman, et al. (2023). Penentuan harga pokok produksi pada UMKM. Economics and Digital Business Review, 4(1), 756–766. https://doi.org/10.37531/ecotal.v4i1.421
19. Indriati, et al. (2025). Management accounting practices in MSMEs: A systematic review of cross-national studies. JRAK, 17(2). https://doi.org/10.23969/jrak.v17i2.26063
20. Guritno, & Zai. (2024). Cost price analysis using full costing and activity-based costing in Sari Gurih Pak Cipto tofu production SMEs. Indonesia Accounting Research Journal, 11(4).
