The effect of raw material supply and production costs on the profit of manufacturing companies listed on the Indonesia Stock Exchange
This study aimed to examine the effect of raw material inventory and production costs on company net profit. The dependent variable is the net profit of manufacturing companies, while the independent variables are raw material inventory and production costs consisting of raw material costs, dir...
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| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Growing Science
2025-01-01
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| Series: | Accounting |
| Online Access: | http://www.growingscience.com/ac/Vol11/ac_2025_4.pdf |
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| Summary: | This study aimed to examine the effect of raw material inventory and production costs on company net profit. The dependent variable is the net profit of manufacturing companies, while the independent variables are raw material inventory and production costs consisting of raw material costs, direct labor costs, and factory overhead costs. The population of this study was manufacturing companies in the consumer industry sub-sector that were listed on the Indonesia Stock Exchange (IDX) during the period 2018–2020. Sampling was based on purposive sampling using the criteria of consumer industry companies listed on IDX during 2018–2020, which used the rupiah as the currency in their financial reports, and had complete financial report data. Multiple linear regression was employed as the data analysis technique. The results show that raw material inventory had no effect on company profits, raw material costs had a significant positive effect on company profits, direct labor costs had a significant positive effect on company profits, and factory overhead costs had no significant effect on company profits. The coefficient of determination (R2) shows that 14.4% of company profits in the consumer industry sub-sector for the period 2018–2020 can be explained by raw material inventories, raw material costs, direct labor costs, and factory overhead costs. |
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| ISSN: | 2369-7393 2369-7407 |