Abstract:
The company prepare a budget for all its activities, both for sales,
administration and production activities. In production activities there are three
main elements, namely raw material costs, direct labor costs and factory overhead
costs. With the production budget, the company is expected to get a picture of
production cost efficiency, which is to avoid the waste of direct or indirect use of
materials and losses caused by the products produced not in accordance with the
standards, so the costs incurred are the costs that should be. At the end of the
period, the company can compare and analyze the differences between the actual
production costs and the production budget that has been determined at the
beginning of the period, thus the company can take steps to improve the following
production activities.This study aims to assess the efficiency of the production
budget at PT Sharp Electronics Indonesia, located in Karawang, West Java. Data
collection techniques carried out by researchers using the documentation method
and interview method. The results of the study indicate that the budget has played
a fairly good role as a means of controlling production costs at PT Sharp
Electronics Indonesia. Analysis of the variants has also been carried out, but the
action on the results of the analysis is still not optimal because the variants that
occurred in the previous month still occur in the following months. This shows that
the actions taken by the company have not been effective in reducing the existing
variants.