OPTIMIZING PRODUCTION COST MANAGEMENT THROUGH COST ACCOUNTING AND TECHNOLOGY ADOPTION IN SHEEP FARMING ENTERPRISES: A CASE STUDY IN BOGOR, INDONESIA

Abstract

This study analyzes the implementation of cost accounting and production cost management in small-scale sheep farming enterprises in Gorowong Village, Parung Panjang District, Bogor Regency, Indonesia. Although sheep farming has become an important source of household income, farmers still rely on informal bookkeeping, resulting in inaccurate production cost calculations and limited financial decision-making. A qualitative case study approach was employed using primary data collected through observations, semi-structured interviews, and documentation, supported by secondary data from relevant literature. The data were analyzed using descriptive qualitative analysis through data reduction, data display, and conclusion drawing. The findings show that the farm has not implemented a systematic Cost of Production (COP) calculation. Direct material costs, direct labor costs, and manufacturing overhead costs are not properly recorded, leading to an underestimation of production costs. The Break-Even Point (BEP) analysis indicates that the enterprise must sell approximately 29 sheep annually to reach the break-even point. The study also identifies technology adoption, including CCTV monitoring, silage feed preservation, and individual housing systems, as practical strategies for improving operational efficiency and livestock management. The study highlights the importance of integrating systematic cost accounting with appropriate technology adoption to improve financial accountability, production cost management, and the sustainability of small-scale sheep farming enterprises.