Cost Structure Analysis for Management and Enhancing Potential of Community enterprisecouncils in Banthi, Banthi District, Lamphun Province

Abstract

This research aimed to study (1) the degree of the knowledge of calculating product cost, (2) the analysis the importance of product cost, and (3) the analysis of cost management in each perspective and to study the guideline of cost management. The population of this study included 5 groups: (1) wood invention group (2) kaokab group (3) red chili group (4) manufacture in longan group and (5) mushroom farm relation group. Test forms of knowledge product cost and interview forms were used as the research tool.

This study found that all 5 groups gave the most importance to production costs. In addition, they had misunderstandings of cost structure, such as exclusion of direct labour and asset depreciation to production cost. The popular methods of cost management were to get raw material directly from the manufactures, marketing management, management and finance management, respectively.

The recommendations of this research were that the community enterprise should improve the knowledge of production costs and give the importance of environmental cost management in order to enhance the potential of the community enterprise.