POPULAR AND SOLIDARITY ECONOMY ENTERPRISES: COST OPTIMIZATION THROUGH LINEAR PROGRAMMING
Main Article Content
Abstract
Purpose: The main objective was to design a linear programming model for cost optimization of popular and solidarity economy entrepreneurships, in addition to propose the job order costing as an effective tool for determining the cost production.
Methodology: The research method was of a logical deductive type, using a mixed approach, with a correlational level. A linear programming model was designed to minimize the production cost. A job order was designed, that includes the components of cost production and operating expenses and was applied to 20 enterprises determining the price in terms of job order costing.
Findings
Spearman's correlation test shows a coefficient equivalent to 0.484, reflecting an average positive correlation between job costing and cost optimization. The application of the linear programming model contributed to the minimization of cost production, while the designed production order allowed to determine the distribution of the cost in each venture, constituting a guide for the calculation of the production cost of future ventures.
Originality/value
This research contributes significantly to entrepreneurs and small businesses, providing a model for cost optimization. The designed production order allows setting the price with an adequate profit margin, registering direct material costs, direct labor and general costs; which are transferred to the model oriented to the minimization of the cost of production.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
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