Process Cost Model in the Industrial Sector. Case of Macol®s

Abstract

The purpose of this research is to create the design of a system of costs by processes, to find the true cost of production in the Macol®s company, oriented to elaborate and commercialize a hose that is used in irrigation and aqueducts in rural areas. Its raw material corresponds to low-density recovered plastic. The methodology followed is deductive and addresses the quantitative paradigm, with an empirical-analytical approach. An instrument consisting of a set of surveys based on cost accounting, answered by employees and management, is used. The main finding corroborates that the company does not know the true cost of production and, consequently, has been working empirically. By designing a cost system model, it aims to demonstrate that, if the resources used are permanently controlled, their use will be optimized, and the unit cost of production will be identified. The implementation of the project improves the administrative and marketing strategies, so that the company is sustainable; It is understood that identifying unit production costs allows detecting the variation between empirical and technical costs, facilitating timely decision-making by the administration and maintaining a good efficient and effective operation with high competitiveness.