Development of Cost management base on community’s economy Ideas : case study of Baan Nah Ngae spice-community, Nopphitam district, Nakhon Si Thammarat province

Abstract

This research aimed to 1) study the environment and problem of cost management based on the community’s economy, and 2) develop cost management based on the community’s economy in the spice-community at Baan Nah Ngae. This study is a research and development process (R&D) which collected data by using semi-structured interviews.

          The result found that 1) the operating environment is very good and there are operational problems such as lack of knowledge and understanding about costs, no division of responsibilities, Setting the selling price does not correspond to the cost, purchasing raw materials, and niche customers, and 2) the development of cost management has used the method of calculating costs using the traditional cost method. The former way of calculating principle-based funding and the method of producing the products ‘just in time’ (JIT) found that 2.1) raw materials do not affect product costs. 2.2) Direct labor costs have an effect on increased product costs and the members of the group have more income. 2.3) Manufacturing overhead does not affect product costs, and 2.4) materials balance at end of period affects lower product. Therefore, product costing or traditional product costing has a higher production cost than just-in-time (JIT) product costing.