International Journal of Advanced Engineering Research and Science (IJAERS) [Vol-6, Issue-9, Sept- 2019] https://dx.doi.org/10.22161/ijaers.69.7 ISSN: 2349-6495(P) | 2456-1908(O) www.ijaers.com Page | 76 The Determination of the Brick Basic Price at Toba Trading Company Sahat Dapot Tua Sitompul Lecturer, Faculty of Engineering, The University of Sisingamangaraja XII Tapanuli, Indonesia sitompoeell@yahoo.co.id Abstract—The reasearh aims to know the calculation of the cost production Brick Basic at Toba Trading Company, to compare the cost of production of Brick Basic established by UD. Toba by determining the cost of production based on a theoretical approach full costing method. The difference between the cost of production of Brick basic per unit assigned UD. Toba in compared by the authorin 2018 are 1) Direct Production Costs per brick produced:Cost of using raw materials: IDR. 40,51/piece + Direct labor wage: IDR. 63.90, / piece, The Total Direct Production Costs: IDR 104.41, /Piece. 2) The Indirect Production Costs per piece of Bricks produced: Usage Costs for Indirect Materials: IDR. 40,51 / piece + Indirect wages: IDR. 21.19, - / piece + Other Indirect Production Costs: IDR. 19.99, - / piece, The Total Indirect Production Costs: IDR. 81.69, - / piece. Based on the results of the analysis can be seen that the calculation of the cost of production of that has been established by UD . Toba is greater than the cost of Brick Basic production calculation based on a full costing method of cost accounting theory approach. The difference cal culation cost of production Brick Basic between theory and companies due to differences in acknowledging the large amount of raw material costs and the large number of factory overhead costs both fixed and variable. Keywords—Determination, bricks’ basic price. I. INTRODUCTION The key goal of most business entities or companies is to obtain the prices that can contribute as much as possible to be profit. This is what economists call profit maximization. Earnings per unit are not as important as realized profits from all units sold. Therefore, the price that will generate the greatest profit for a certain sales volume must be charged to the consumer. The determination of cost of goods is a complex problem and is not the task of one person or one activity. Theorists and practitioners disagree for a variety of pricing theories, therefore research works that require collaboration and coordination between economists, statisticians, marketing specialists, industrial engineers and accountants to decide. Because setting the selling price requires consideration of many factors, some of which may not be measured, or controlled, a wise judgment is needed from the practitioner. The Accountants can help executive management and marketing managers with benchmarks that can be used as guidelines in exploring relatively uncharted paths to successful pricing. The Cost is generally seen as a starting point in the business of pricing, although the relationship between the two should not be seen rigidly. The pricing policies change in relation to costs and market situation, and also with long-term and short-term views. The long-term approach allows changes in product types, production methods, factory capacity, marketing and the distribution methods. It is intended for prices that can recover all costs plus a reasonable return on invested capital. The Normal or average production costs are the basis used for pricing in the short term aimed at covering / replacing at least a portion of the total costs in order to meet changing needs as a result of fluctuations in sales volume, a combination of sales and prices in such circumstances Product diffraction costs can act as a guideline for pricing. The relationship between costs and prices is one of the most difficult problems for managers to determine. Pricing is an area where management really is an art. Selling prices, which are generally seen as the level of exchange between two types of commodities in many industries, are determined in such a way as to allow certain controls over these prices. Even companies that face intense competition can still control the selling prices because there may be differences in the types of production, quality and services provided. . However, if compared with controlling the costs incurred, the company's ability to control selling prices is certainly much smaller. II. REVIEW OF LITERATURE The amount of money spent by producers to pay for inputs or factors of production used in the production process of output is called the amount of production costs. The size depends on the amount of input and the high and low prices of the inputs used. The amount and price of inputs depends on how much the output (goods / services) produced by producers can therefore be stated that the amount of production costs is influenced by the amount of output. Mathematically it can be seen that the total cost is a function of the amount of output or: TC = F (Q) TC = Total cost F = Function Q = Number of outputs