摘要：Understanding the cost of production is the method of production costs collectedfor a certain period and the price of goods manufactured products producedunity in this period is calculated by dividing the total cost of production for thatperiod by the number of units produced in the period. The method to determinethe cost of production is a way of calculating the elements of cost into cost ofproduction. In considering the elements of cost into the cost of production, thereare two (2) approaches, namely full costing and variable costing. The purpose ofthis study is to determine which method more effectively used in determiningthe HPP and the effect on profits generated and the factors that cause differencesin earnings between the two methods. In conclusion the author ie thedetermination made by the company were partially deficient in depreciationexpense due to not enter into cost of production.
