DECISION MAKING ANALYSIS TO CONTINUE OR DISCONTINUE THE SALES OF CERTAIN PROCESSED ALOE VERA FOOD PRODUCTS WITH THE HELP OF RELEVANT COST ANALYSIS IN ANEKA KARYA VERA

Abstract

This research is based on the poor sales performance of Aneka Karya Vera (AKV) that is caused by less profitable products. The company needs to solve the issue by deciding on continuing or discontinuing the sales of certain products. Relevant Cost Analysis is used to conduct the analysis in this study. The purpose of the study is to determine the best decision for AKV with the help of Relevant Cost Analysis. This decision will determine whether the company needs to continue or discontinue the sales of chocolate, jelly, and crackers. This research uses a qualitative approach which is based on case study. The object of this research is the financial report of AKV, particularly the income statement for the period of April 2012 to July 2013. The data collection method used in this study is observation which is based on content analysis. Based on Relevant Cost Analysis, the best decision for AKV is to continue the sales of the company's products; including chocolate, jelly, and crackers, because it will bring the company a maximum profit of Rp.26.511.300,00.