The Product Cost Calculation and Setting Product Sales Prices: A Case Study of Noen Kham Community Products, Noen Kham Subdistrict, Chainat Province

Abstract

This research has objectives to: 1) Study of Noen Kham Community Products, Noen Kham Subdistrict, Chainat Province 2)   Study Setting Product Sales Prices of Noen Kham subdistrict, Chainat. This research is considered as a qualitative research. The data collection is undertaken by using an in-depth interview with the 20 key 20 product informants and a focus group of 4 product groups. The collected data were analyzed by content analysis and verified by a triangulation method. The results of the study revealed that product cost calculations can be divided into 4 product groups. 1. The homestay product cost group for tourists has incomplete product cost calculations. That is to say, product cost groups do not include direct labor and manufacturing costs included in the product cost calculation. It is the result of the work of only one owner and uses their own area to provide services to tourists. 2. The cost of vegetable and fruit processing product group uses manufacturing costs and direct materials that can be purchased locally to be calculated as product costs, but does not take direct labor costs to calculate product costs. 3. The cost of antique woven fabric product group, Noen Kham pattern, does not use manufacturing costs and direct materials to calculate the cost of the product because it was the use of the remaining rags to create added value. 4. The multipurpose product cost group has complete product cost calculations. That is, the direct raw materials, direct labor costs, and manufacturing costs are integrated into the product cost, making the product cost groups know the breakeven point of the product. The participating community product pricing are used to set the sales price by comparing from competitors. As a results, 7 products have a lower selling price than the actual product cost, resulting in operating losses.