BIAYA PRODUKSI SEBAGAI DETERMINAN EFISIENSI OPERASIONAL DAN PROFITABILITAS: KAJIAN BERBASIS PENGAMBILAN KEPUTUSAN MANAJERIAL

Abstract

Production cost is a strategic variable that directly determines a company's operational efficiency and profitability in an increasingly competitive global environment. This study aims to analyze the effect of production costs — encompassing direct raw material costs, direct labor costs, and manufacturing overhead — on operational efficiency and profitability of Indonesian manufacturing companies, as well as to examine their implications for managerial decision-making. The research employs a quantitative approach with a descriptive-associative design utilizing panel data from 45 manufacturing companies listed on the Indonesia Stock Exchange (IDX) during the 2020–2024 period. Analysis was conducted using Fixed Effect Model (FEM) panel data regression with classical assumption testing at a 5 percent significance level. Results confirm that production costs have a significant and negative effect on operational efficiency (β = −0.412; p < 0.001), while effective production cost control significantly enhances profitability measured through ROA (β = −0.521; p < 0.001) and ROE (β = −0.389; p < 0.001). Manufacturing overhead is identified as the component with the most significant impact on both dependent variables. This study affirms that production cost management is a strategic instrument of managerial decision-making that determines long-term competitive advantage and corporate sustainability.