The Cost Management of the OTOP Product, Proceessed Food and Handicraft, in Sansai District, Chiang Mai Province

Abstract

The research aims to study the method of product costing of OTOP products in Sansai district, Chiang Mai Province and to increase the efficiency of product cost management by conducting research studies in 2 groups 1) Ban Ton Chan Farmer Housewife Group, Salted Egg producer 2) Ban Den Sankayom Handicraft Group, Plastic basket weaving group. This study used a group discussion to collect information and on how to cost group products as well as how to optimize cost management of both OTOP products.

            In assessment of the 2 groups, there has been a misunderstanding in the product costing method by incorrect classification of direct raw materials and no direct labor charge including incomplete production costs. There is no optimization of the cost management of the OTOP products. After the education of the product costing method the groups can calculate the cost of the product correctly including the optimization of the cost management of OTOP products, by applying the concept of “Just in Time.” This allows the groups to set the selling price correctly and increase the profit for the groups. The suggestion from this research is that the OTOP products group should have knowledge about the cost of production and to correct and pay attention to the cost reduction that may be incurred as a result of production to add potential to the next OTOP products.