PRODUCTION BUDGETING PRACTICES IN LOCAL TOFU BUSINESSES: A DESCRIPTIVE STUDY ON CONSISTENCY AND RAW MATERIAL PRICE CHALLENGES

Abstract

This study aims to analyze the production budgeting practices at Pabrik Tahu Super Afifah in Palu City and the strategies implemented to cope with fluctuations in soybean prices. A descriptive qualitative approach was employed through interviews, observations, and documentation. The findings indicate that the budgeting process is carried out manually based on the owner’s experience, without the support of a formal recording system. Increases in soybean prices have a direct impact on production costs and reduce profit margins. The business owner responds to these conditions by reducing production volume, allocating financial reserves, and seeking more affordable suppliers. Although this budgeting practice allows the business to maintain operational continuity, its effectiveness remains limited. Therefore, the implementation of a data-based recording system is nectahuessary to improve the accuracy of planning and cost control.