DECISION MAKING ANALYSIS ON THE CONTINUATION OF PEARL PRODUCTS SALES IN CLASSY&CO USING RELEVANT COST

Abstract

The purpose of this research is to identify less attractive product lines, which reduce the company’s profit. This research is a descriptive research with qualitative approach. Purposive sampling is used to determine the population and samples in this study. The study population includes the financial report of Classy & Co between August 201 and October 2013 and the result of the interviews that are conducted towards the study samples. People who are directly involved and have similarities with Classy & Co are chosen as interviewees, including Classy & Co’s facilitators and owners, as well as another pearl business owner. A documentation study method is used to analyse the data that come from written documents and semi-structured interviews. In this research, relevant cost method is chosen as the tool for decisionmaking. Relevant cost method reveals all the cost needed to take a specific management decision. Costs like estimated future cost and different alternative costs should be considered in making the decision. Both quantitative and qualitative information must be considered before deciding on continuing or discontinuing the pearl product line. Based on the relevant cost method, the result