Analysis of Production Costs: An Approach to Decision-Making

Sebastián Tapia-Quezada, Lisseth Lucero-Hurtado, Fabiola Reino-Cherrez, Lorena Siguenza-Guzman, Lorena Siguenza-Guzman, Rodrigo Arcentales-Carrion, Rodrigo Arcentales-Carrion

2023

Abstract

Due to competitive growth, companies need to have a cost system that allows them to identify all the costs incurred in the production process. Furthermore, it is necessary to know the company’s needs and production characteristics for its implementation. That is why the present investigation analyzes the production costs in an Ecuadorian textile SME dedicated to manufacturing and commercializing lingerie for the home. This study aims to identify a cost model that adapts to the characteristics and needs of the organization, both economical and productive. The methodology is based on a) organizational knowledge and information gathering, b) analyzing the production costs, and c) establishing the optimal cost model proposal. The findings indicate that the textile SME does not have a production cost system that allows timely decision-making. Thus, the study proposes implementing a cost system for operations since it best adapts to the characteristics and needs of the case study. Furthermore, this system aims to optimize the entity’s internal processes, allowing timely decision-making, both strategic and productive.

Paper Citation

in Harvard Style

Tapia-Quezada S., Lucero-Hurtado L., Reino-Cherrez F., Siguenza-Guzman L. and Arcentales-Carrion R. (2023). Analysis of Production Costs: An Approach to Decision-Making. In Proceedings of the 5th International Conference on Finance, Economics, Management and IT Business - Volume 1: FEMIB, ISBN 978-989-758-646-0, SciTePress, pages 82-88. DOI: 10.5220/0011857000003494

in Bibtex Style

@conference{femib23,
author={Sebastián Tapia-Quezada and Lisseth Lucero-Hurtado and Fabiola Reino-Cherrez and Lorena Siguenza-Guzman and Rodrigo Arcentales-Carrion},
title={Analysis of Production Costs: An Approach to Decision-Making},
booktitle={Proceedings of the 5th International Conference on Finance, Economics, Management and IT Business - Volume 1: FEMIB,},
year={2023},
pages={82-88},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0011857000003494},
isbn={978-989-758-646-0},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 5th International Conference on Finance, Economics, Management and IT Business - Volume 1: FEMIB,
TI - Analysis of Production Costs: An Approach to Decision-Making
SN - 978-989-758-646-0
AU - Tapia-Quezada S.
AU - Lucero-Hurtado L.
AU - Reino-Cherrez F.
AU - Siguenza-Guzman L.
AU - Arcentales-Carrion R.
PY - 2023
SP - 82
EP - 88
DO - 10.5220/0011857000003494
PB - SciTePress