ANALYSIS THE APPROPRIATE USING STANDARD COSTING APPLYING IN LAND COST COMPONENT OF REAL ESTATE DEVELOPMENT ACTIVITIES (A CASE STUDY OF PT SUBUR AGUNG)

Abstract

The main objective of this research is to explore and prove the appropriate using standard costing in land cost component of real estate development activities. Moreover, the writer did a deeper analysis by case study in PT Subur Agung of Ciputra Group. Standard costing usually uses in manufacturing company and consists of direct material, direct labor and factory overhead. A series of professional investigations indicate that standard costing is being applied widely in the company practice. When investing on real estate development activities, the developer would desire to realize the project cost firstly, and estimate the pre-selling price. As the researcher interned in Ciputra Group which is one of the biggest real estate development companies in Indonesia, the researcher found that Ciputra Group uses standard costing to solve these problems. How standard costing is connected with real estate development activities puzzle the researcher. From this purpose, this research used quantitative descriptive and exploratory research as the approach. The data was gathered by conducting field research in case study of PT Subur Agung, which is the subsidiary company of Ciputra Group. Meanwhile, the literature review more focused on theories about standard costing, comparing with historical cost and its application in cost budgeting, pricing determination and record the cost of goods sold. Secondary data was gotten through documentation, in-depth interview and observation in PT Subur Agung. The analysis started by knowing the conceptual situation of PT Subur Agung. The analysis of the data was presented in tables and calculation supported with detail explanation. In accordance with the cost estimation classification matrix, the variance range is in the expected accuracy rate by testing the variance percentage between standard cost and actual cost. The additional similar projects in Ciputra Group also follow the same scope. All these evidences have proved the appropriate using standard costing in land cost component of real estate development activities.