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Smart Business Decisions with Differential Costs: A Case Study of Fried Rice and Tempeh MSMEs in Special Orders

Year: 2025

Type: article

Abstract: This study aims to analyze the application of differential cost analysis in managerial decision-making processes, particularly in evaluating special orders for Micro, Small, and Medium Enterprises (MSMEs). Using a comparative approach to two MSME case studies Nasi Goreng Kembar Naknik and Tempe Pak Kasmudi this research reveals how differences in cost structures and production capacities influence business decisions. The results show that differential cost analysis provides a strong basis for MSMEs to determine the feasibility of special orders by considering relevant additional revenues and costs. Both case studies demonstrate that special orders can increase profitability without requiring additional production capacity, provided decisions are based on positive contribution margins. This study emphasizes the importance of understanding relevant costs to support the efficiency, sustainability, and growth of MSMEs.

Source: Formosa Journal of Multidisciplinary Research

DOI: 10.55927/fjmr.v4i5.181

Authors: Sasha Salsabilah, Talita Adelia Zahira, Dakeysha Yaspica, Emylia Yuniarti

Institution: Sriwijaya University

Language: English

Topic: Business, Education, Mathematics Research

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: diamond

OpenAlex ID: W4411117260

FWCI:

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